AVC during final year of pension

[portlaire]

I'm enquiring on behalf of my Dad. He is currently employed by a company and also has a small business that he runs. He will be retiring later this year. He was wondering if it would be beneficial to pay an AVC into his pension to avail of the tax break. Would the AVC be added onto his final pension value so that he could avail of it when he retires?

 

[bongo2]

If he is over age 60 he can contribute 40% of his earnings for the last year into his AVCs (less any amount he has contributed to his pension plan). The amount he can receive as a tax free lump sum on retirement depends on his length of service and his final renumeration. The max he can receive is 1.5 times his final renumeration (assuming that he has at leat 20 years service in the plan he is retiring from)