Is it possible to add to AVC soon after retirement?

P

Protocol

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Scenario:

public servant aged 60 retires in March 2023 with 28 years service
PRSI class D, so will get work pension at age 60
Has been doing an AVC recently, for maybe 2-3 years
the contributions to the AVC for the year 2022 are below the limit of 35%
lump-sum not paid by employer yet, no sign of it, employer seems slow


Can the person make further one-off contributions to the AVC, in the days/weeks after official retirement, but before the lump-sum is paid?
 
Protocol said:
Scenario:

public servant aged 60 retires in March 2023 with 28 years service
PRSI class D, so will get work pension at age 60
Has been doing an AVC recently, for maybe 2-3 years
the contributions to the AVC for the year 2022 are below the limit of 35%
lump-sum not paid by employer yet, no sign of it, employer seems slow


Can the person make further one-off contributions to the AVC, in the days/weeks after official retirement, but before the lump-sum is paid?
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No
Any AVCs must be paid whilst still in employment.
 
I make a top up to my AVC by lump sum every year and declare this to revenue.
If leaving employment that lump sum for the curent or previous tax year has to be before last day of work?
 
Luternau said:
I make a top up to my AVC by lump sum every year and declare this to revenue.
If leaving employment that lump sum for the curent or previous tax year has to be before last day of work?
Click to expand...
No. Once you are employed for any part of a tax year you have up to October 31st (or maybe November 15/16th?) of the following year to make a pension contribution in and claim tax relief against earned income.
 
Luternau said:
I make a top up to my AVC by lump sum every year and declare this to revenue.
If leaving employment that lump sum for the curent or previous tax year has to be before last day of work?
Click to expand...
Yes that is correct for AVCs. AVCs relate to an occupational pension scheme.
If you have a PRSA you can contribute after your last day of employment.
 
Sorry, I am confused.
Post 2 says they l must be made before ceasing employment.
@ClubMan at post 4 aligns with what I thought was the process and limit
@S class says again payments can only be made when you are employed.
 
Luternau said:
Sorry, I am confused.
Post 2 says they l must be made before ceasing employment.
@ClubMan at post 4 aligns with what I thought was the process and limit
@S class says again payments can only be made when you are employed.
Click to expand...
Clubman is wrong. The correct advice for AVCs was given at post 2.
 
Getting conflicting views on taxable (PAYE) element of a severerance payment calculated using SCSB method (public sector / defined benefit pension with additional AVC.
Is this considered earned income and eligible to make a contribution to an AVC outside of main scheme as per regular pay?

Or not earned income and exempt from pension contribution calculations?
 
Did you pay A, B or D class Prsi on the severance. If you did then I would presume it is earned income. If you paid M class it might be considered unearned.

kpmg.com

Are severance payments taxed?

Explaining the tax treatment of payments on cessation of employment
kpmg.com kpmg.com
 
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I pay D class PRSI.
From KPMG:
Employee and employer PRSI is not payable on a severance payment. However, the taxable portion of the termination payment is liable to income tax and the Universal Social Charge (USC) at the employee’s marginal tax rates.

Key here is whether its classed as earned income. If it's not, there is no point in making a contribution as I will pay top rate on it now and again on drawdown
 
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