Public Sector Pension

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borat

Registered User
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17
For someone in the public sector, is it better to buy back years or contribute to avc's?
 
Buying back previous reckonable service (i.e. where you were in an equivalent line of work, but on temporary contracts and therefore not eligible to contribute the employer's pension scheme, and have since become employed on a permanent basis) is far cheaper than purchasing 'notional' service through AVCs - not least because you're entitled to buy back the years of reckonable service at the % rate that you would have paid back then - presumably on a much lower salary(?)

Talk to your personnel officer about it and work out how much reckonable service you can buy back; then ask him/her to contact your former employer and obtain details of your period(s) of employment and wages earned. Then make up the balance, if necessary, via AVCs.
 
buying back notional service in the Public Sector....is it correct that they will insist on taking into account the value of any privately held pensions you had at that time?
 
borat said:
For someone in the public sector, is it better to buy back years or contribute to avc's?
Click to expand...

public service pension is a defined benefit pension, any AVC you have will only be a defined contribution.
In a defined contribution pension you take the risk of stock market etc flucuations coming close to the time of your retirement.
With the defined benefit, no risk. The public service pension is index linked, a pension you buy with an AVC won't be.
Get back as many years as you can (provided you won't go over the maximum) before thinking about AVC's
 
need to find this out...as I'm acting as a peace broker here......all the civil service stuf indicates that some people have retirement age at 60, some 65.
My Da is in Civil Service.....revenue. Hes > 60 but < 65 and has about 35 years done. I can't figure out if he will get 35/40ths of the max, or if he will get 35/40ths of the acturially reduced max as he is not 65. But that acturial reduction does not seem to kick in for some people who are over 60 depending on what their retirement age should be...60 or 65...so how do I figure it out!
And what are preserved benefits.
 
Legend99

Go to Impact.ie and click on the right hand side at "pensions". Follow the Q&A. I tried to copy and paste but it would not work for me.
I take it that your dad will have service calculated at actual service x 1/80 as he is > 60. If he has a minimum retirement age of 65 (which I doubt) see second table. Hope this helps.

Slim
 



This site explains how CS pensions work.

Assuming that he is a normal general service grade, his pension will be based on his current salary, provided he has not been promoted in the past 3 years, and he will be paid 35/80 of this, his final salary. This will be linked to any increases that the people still working get. Acturially reduced doesn't come into it. His pension will be payable immediately and he can retire at any time he wants. He doesn't have to stay until he is 65 if he doesn't want.

He will also receive a once off lumpsum of three times this amount.

Your father may decide that he doesn't want to retire until he is 65 and each year he completes will increase his pension and lumpsum by 1/80


http://www.cspensions.gov.ie/faq.asp



Murt
 
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