AVC options for new Public Servant

[Protocol]

Clare12,

there are many sellers of PRSA-AVCs.

But there are just a few discount brokers, who offer an execution-only service, no advice supplied, lower fees.

See www.labrokers.ie or else www.prsa.ie

There may be a few more.

 

[Lost shepherd]

Hi,

In a similar position, having joined the public sector recently. However I will more than likely leave in 3/4 years.
In the meantime I want to add to pension , I have the option of
- AVCs
- purchasing additional years
- start a PRSA (with/without pension pot from previous employer)

any thoughts on the above.
I would be looking to take pot to new employers pension scheme if possible.



Thanks in advance

 

[Early Riser]

In a similar position, having joined the public sector recently. However I will more than likely leave in 3/4 years.
In the meantime I want to add to pension , I have the option of
- AVCs
- purchasing additional years

If you only joined the Public Service recently (since 1st Jan. 2013) you presumably are in the Single Pension Scheme. There is no provision to purchase "notional service" in this scheme, afaik. Unless you have some previous actual service that you can now "buy back" ?

 

[Lost shepherd]

If you only joined the Public Service recently (since 1st Jan. 2013) you presumably are in the Single Pension Scheme. There is no provision to purchase "notional service" in this scheme, afaik. Unless you have some previous actual service that you can now "buy back" ?

The agency I work for have their own scheme which may be different to the general Public Sector scheme. But the option is to purchase is there; from the handbook
"You may increase your retirement income by paying Additional Voluntary Contributions (AVCs) to a PRSA.

Alternatively, you can purchase added years of Pensionable Service under the scheme. The number of years that you can purchase may be restricted to ensure that your total benefits are likely to remain within Revenue limits. The cost of each year of Pensionable Service will be determined by the scheme actuary and will depend on such factors as your age, your current Salary, your Salary in previous years and on historical rates of revaluation. "

Elsewhere in the book it states " AVCs represent a long-term financial commitment designed to increase your retirement benefits. Therefore, it is a requirement of the Revenue Commissioners that AVCs cannot be cashed before retirement"

Does that mean that AVCs are locked in to the scheme even if I leave early and try to take the whole pot with me?

 

[Early Riser]

That is not the Single Scheme. Even with a regular public sector scheme (from before 2013) you would not be able to take any of the pot with you, including the AVCs. However, the above does not look like a regular public sector scheme either.