Service in excess of 40 years..extra benefits?

[getmeoutofhere]

I was reading this revenue doc https://www.revenue.ie/en/tax-professionals/tdm/pensions/chapter-08.pdf

and I wonder what are any conditions?
Does it have to be 40+ years with the same employer? Does it apply to public and private sector?
Can you simply work a few extra years and get the added benefit?

 

[Early Riser]

I am not certain, but in my understanding two conditions have to be met:

1 Pensionable service beyond that required for maximum benefits in the pension scheme (usually 40 years).
2 Pensionable service beyond normal retirement age for the scheme.

So a 65 year olds with 44 years pensionable service in a scheme with a normal retirement age of 60 could benefit. If the normal retirement age for the scheme is 65 they do not.

Just to add - this is what Revenue allows. Any extra benefit still has to be funded.
Take the example of the 65 year old public servant with 44 years of service above. By Revenue rules they could take an additional 12/80 (4 years *3/80) of pensionable salary tax free. But they would have to fund it via an AVC. It is not provided for in the main public service scheme.

 

[getmeoutofhere]

I am not certain, but in my understanding two conditions have to be met:

1 Pensionable service beyond that required for maximum benefits in the pension scheme (usually 40 years).
2 Pensionable service beyond normal retirement age for the scheme.

So a 65 year olds with 44 years pensionable service in a scheme with a normal retirement age of 60 could benefit. If the normal retirement age for the scheme is 65 they do not.

Thanks for response.
So, for example, a 60 year old, with 40 years service at 60, and a NRA of 60 for the scheme, could, if say working until 65, gain an extra 5 years benefits?

 

[Early Riser]

Thanks for response.
So, for example, a 60 year old, with 40 years service at 60, and a NRA of 60 for the scheme, could, if say working until 65, gain an extra 5 years benefits?

I am not a tax expert, but as I understand it Revenue would allow the person to take the extra benefits to the limit outlined in the Chapter. However, the Pension Scheme does not have to provide these benefits. If the person in your example was a public servant, their public service pension benefits would be capped at 40 years. They could use an AVC to fund the extra benefits allowed by Revenue, ie, up to 15/80 of pensionable salary tax free.