Mix of 'private' and public pensions mess

D

DCSF

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Hi, I've asked questions on here before (and got great responses) but as retirement looms ever closer I'll try get more clarity.
I spent 18+ years in a commercial semi state firm..took Voluntary Severance in 2005, took my pension lump sum and left pension preserved (bad mistake)
I joined public service immediately and retained my class D status.
I'll probably retire in 5 years with 40 years service between semi state and public service.
Over the years I've gained a few promotions..
I cant transfer my service / pension as I availed of lump sum (ooops)
Lump sum was actuarily reduced.

Semi State is essentially private occupational pension scheme and even almost folded a few years ago and now pensions don't even increase in line with existing staff pay increases.

Now, how can I maximise my pension benefits?

Do I have scope for a last min AVC? Actuarily reduced pension (received 17 years ago ) and pension lump sum I'll get on retirement will be way less than my finishing salary x 1.5.
How about Revenue limits for tax free lump sums (1.5 times salary) and 40 year service limits? Do these still apply with mix of private / public pensions?
Can I make use of an AVC?

Any and all advice most welcome.....
 
Ex-eircom, by the sounds of it? Me, too. Those VS deals back in the day were the bees knees!

A few things.

1. As you know, you have two separate pension schemes. Because the lump sum you got from eircom was more than ten years ago, it doesn't count against your lump sum limit from your current employment. So you can top that up with AVC contributions for the next five years. (Not just "last minute" contributions.)

2. You might want to look at taking a transfer value out of your deferred pension scheme. Normally this is strongly advised against for a DB scheme. But there's a couple of unique features here. First, it's very unusual in that you've already taken the lump sum element so you will only get an annual pension. Second, the eircom scheme is fully funded, but derisked and invested in low-risk, low-return bonds. That means there's unlikely to be discretionary increases for pensioners. If you transfer out (and the current finance act going through the Dail will allow you to) you can take 25% tax free straightaway on maturity and draw down the remainder as you choose.

3. You could also look at purchasing additional years in your current public service employment.
 
Hiya,

Many thanks for reply.

1. Are you sure of the 10 year rule? I haven't come across that anywhere in my research? I hope you are sure

2. Not eircom unfortunately, but An Post. Does that make a difference to your response? I'm not sure regards transfer out..I'll have to investigate...perhaps you could explain?

3. Purchase added years is mad expensive...plus I'll already have 40 years combined on retirement.

Thanks so much...
 
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