Dairy Mortar
Registered User
- Messages
- 1
A teacher, I am currently 56 and as I am seriously considering my early retirement options, I contacted both the DES and the PSRA for figures for each of the remaining four years to full pension
It would seem that, in my case, as I have purchased notional service up to age 60 I would need to retire on a cost neutral basis on any of the four years prior to that? Is that the case?
Would you know the date on which legislation was passed to transfer employees from Class D to Class A - and if it is the case that I should be able to retire earlier (without the cost neutral penalty) if I were still on Class D PRSI? Should I query the transfer?
I'm about to retire at age 58 under CNER having both Class D HSE and VEC , Class A (Section 38 Voluntary body)service but have been given an estimate which combines the two together. 26.333 years . Am wondering what are the advantages/ disadvantages of having them calculated separately.
Can I send my estimate to you by pm please.
Supermom
2. Separately claim Class D Preserved Benefit from ETB at age 60 based on my age 57 & 204 days
Cost neutral Net lump sum estimate 27,747.53 Total Annual pension 9,352.42 based on 39,087 salary scale.
Class D Preserved Benefit with ETB = 18.43 years at age 60 (2023)
Class A service which was jobshare but in full years is 8.26
Total years service is 26.6886
No indication given of maximum supplementary eligibility given.
Combined Pension -Yes it was mentioned that Spouse and Childrens may need to be purchased out of the lump sum but not quantified.
Yes my mistake it is a Class D Preserved Pension which I can draw down at age 60 (2023) NET Lump Sum €27,747.53 Total Annual Pension €9,352.42
Many thanks for any advice I find it so complex.
Many thanks Early Riser. This has been a great help. Happy New Year.Hi Supermum,
I have had a look at your two options. I have made a couple of assumptions;
- I am assuming that in case of both options an actuarial reduction will be applied to any Supplementary from 60. This is uncertain, but in any event it shouldn’t greatly impact of the relative merits of one versus the other. If it is not applied your total pension will be a little higher.
- In either case you will meet the conditions to claim the Supplementary from 60.
- I did not look at any difference there might be in terms of survivor benefits.
Lump Sum
Option 1. Total tax-free lump sum = €41,666 ( €13,718 at 57.6 and €27,748 at 60).
Option 2. Total tax-free lump sum = €44,322 (all at 57.6) However, there will be a, as yet unquantified, deduction from this for survivor's benefit buy-back. You can claim tax relief on this amount from Revenue in your return.
Annual Pension
Option 1.
Pension income from 57.6 to 60 = €1,871
Pension income from 60 = €13,607 (Class A €1871 + Class D 9,352 + Supplementary €2384)
Option 2.
Pension Income from 57.6 to 60 = €6,045
Pension Income from 60 €13,743 (Class A €6,045 + Supplementary €7,698).
Based on the above, Option 2 (all benefit calculated as if at Class A) seems preferable for your circumstances. It would be different if you were planning on insurable employment after retirement. In that case there would be no Supplementary eligibility and Option 1 would probably be more attractive.
Hi Early Riser,
You have laid out my options very clearly and I understand these figures are in and around what I will be entitled to up to age 68 what is the position after this please?
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