pension options

My father works for dublin city council and is entitled to retire now at age 55 with full defined benefit pension.he has taken up the option to continue working untill 60 , will he get more of a pension or should the council stop taking his pension contributions now?
Is it right that he will be able to take 25% tax free when he does retire?
can he set up another private pension as he plans to work for next ten years and pay in 30% of salary?
basically what are his options now and at age 60 when he leaves council?any idea's? he has no mortgage,
cheers

Do you have a copy of the scheme rules? Your father is entitled to them and can get a copy off whoever administers pensions for Dublin City Council.

Usually defined benefit pensions schemes have a maximum number of years service (in most cases 40 years) and his benefits will be capped at that number of years. Eg if he works 43 years he only gets benefit for working 40 years. Whether or not and how much of a tax free lump sum he can take depends on the scheme.

The best thing for your dad to do is to go to someone in HR in DCC as all pension schemes vary.

How long has your father been working with the council?

You also need to ask if the state pension is deducted at 65. Your father could contribute to an AVC to make up this shortfall

Most pension schemes allow 1/60 of salary for each year worked up to a max of 40 years giving a pension of 40/60 of final salary.

Most defined benefits schemes allow you to take a lump sum of up to one and a half times your final salary. You normally have to commute part of your pension to take up this option. The total pension incl the lump sum allowed by revenue is 2/3 of final salary.