New to Public Sector and Questions

ToshyWashy

Registered User
Messages
3
Hi all,

Have a few queries about public sector pensions, as I will shortly be joining the public sector.

I will be joining in my mid 30’s, at 36 years, so from what I can find online I will be working until 68, so will need to work for 32 years.

Will I have 32 years of a ‘full’ public service pension, or 4/5’s of 40 years?, or not?

I’ve looked at the single scheme public service calculator, and can see benefits I will get after 32 odd years.

My question is what are my options to make good on the shortfall, I know joining at my age is far from ideal from a pension perspective, I have a separate pension pot from the private sector which is small enough.

From a quick google, and the single service scheme website, it is not nor will it be possible to buy back years (8) in my case.

I understand that the buy-back of years is preferable if available, as guaranteed by the state etc, than AVC’s.

What are my AVC options?

Also, and I know this is highly ambitious, but if I wished to retire earlier than 68, how should I be planning for this, vis-à-vis, ACV v possibility of buying back years, if that option ever emerges?

In my current Private Sector role, I can contribute up to 20% in AVC’s annually, how will this work if the buy back of years is not available, do I put 20% of my new public sector salary into my new public sector pension pot? Or am I doing a private AVC, if so, how do I go about this?

I’ve read some less than positive reviews about AVC’s in terms of costs to public servants, so where is the best/cheapest place to do it?

Are employees told all the above on day one of their new job. (Apologies if they are).
 
As far as I understand it, it is not possible to buy back years in the single scheme at the moment anyway.
I think you pretty much need to research pensions options yourself - HR will be able to advise but they probably won't tell you without you proactively enquiring
For the moment I would just see how you get on in the job, 32 years is a long time and you might decide in a few years to move to another role outside teh public service completely, so see how you settle in and in a couple of years maybe look into it more. Just a suggestion!
 
The Single Scheme (applicable to new entrants post 2013) is a revalued career average scheme. This is not the same as the old Defined Benefit scheme. As things stand currently you do not have a facility to buy “added years” as you would have under the old Defined Benefit scheme. Your only option currently if you want to accumulate additional pension funds is to invest in a “stand alone” PRSA AVC.
You can check out the details of the Single Scheme on the website of the Dept of Public Expenditure and Reform.
 
Will I have 32 years of a ‘full’ public service pension, or 4/5’s of 40 years?, or not? YES BUT YOUR PENSION WILL BE BASED ON YOUR ACTUAL EARNINGS

My question is what are my options to make good on the shortfall...Currently PSA or AVC

I understand that the buy-back of years is preferable if available, as guaranteed by the state etc, than AVC’s.

What are my AVC options? Private sector provider. Some are on AM.

Also, and I know this is highly ambitious, but if I wished to retire earlier than 68, how should I be planning for this, vis-à-vis, ACV v possibility of buying back years, if that option ever emerges?

In my current Private Sector role, I can contribute up to 20% in AVC’s annually, how will this work if the buy back of years is not available, do I put 20% of my new public sector salary into my new public sector pension pot? Or am I doing a private AVC, if so, how do I go about this? Your superannuation deduction will come from this 20% first. You can contribute the balance to an AVC or PRSA.

I’ve read some less than positive reviews about AVC’s in terms of costs to public servants, so where is the best/cheapest place to do it? Shop around.

Are employees told all the above on day one of their new job. (Apologies if they are). You should receive information on the pension scheme but not PRSA etc.

Congratulations and welcome to the sector!
 
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