Hi all,
I'm attempting to calculate the maximum AVC contribution I could make per year per Chapter 5 of the Revenue Pension Manual to mitigate risk of overfunding. I'm slightly confused as to what capitalisation factor (Table 1) and scheme factor (table 5) I should apply in the calculations.
I am male, single, 34 years old. I'm a member of the Single Public Service Pension scheme with 3.5 years service to date. I'm at the top of my salary scale and expect to remain at this point for the majority/rest of my career. I have a small deferred benefit from a previous private sector employment.
Conservatively, I think I can assume the pension benefit from my public pension scheme to be (0.5*current salary - state contributory pension) and max lump sum to be 1.5*current salary. (I understand the actual pension and lump sum at retirement I receive will be slightly less than this but the calculation is complicated.)
As I am currently unmarried, do I have to use the "Male no spouse or civil partner" capitalisation factor in table 1? Or should I use the "Male with spouse or civil partner" capitalisation factor as the Single Scheme has a 50% spouse's pension?
Similarly, what scheme factor should I use in table 5? I understand the factors in the "Earnings Index" column apply but should I use the scheme factors for "Male - 50% spouse or civil partner" or "Male - 0% spouse or civil partner"?
It would seem odd to apply the "Male no spouse or civil partner" capitalisation factor but the "Male - 50% spouse or civil partner" scheme factors?
Thanks for any input!
PS Table 5 does not extend past NRA 65 but I assume I can extrapolate to NRA 68 based on the figures
I'm attempting to calculate the maximum AVC contribution I could make per year per Chapter 5 of the Revenue Pension Manual to mitigate risk of overfunding. I'm slightly confused as to what capitalisation factor (Table 1) and scheme factor (table 5) I should apply in the calculations.
I am male, single, 34 years old. I'm a member of the Single Public Service Pension scheme with 3.5 years service to date. I'm at the top of my salary scale and expect to remain at this point for the majority/rest of my career. I have a small deferred benefit from a previous private sector employment.
Conservatively, I think I can assume the pension benefit from my public pension scheme to be (0.5*current salary - state contributory pension) and max lump sum to be 1.5*current salary. (I understand the actual pension and lump sum at retirement I receive will be slightly less than this but the calculation is complicated.)
As I am currently unmarried, do I have to use the "Male no spouse or civil partner" capitalisation factor in table 1? Or should I use the "Male with spouse or civil partner" capitalisation factor as the Single Scheme has a 50% spouse's pension?
Similarly, what scheme factor should I use in table 5? I understand the factors in the "Earnings Index" column apply but should I use the scheme factors for "Male - 50% spouse or civil partner" or "Male - 0% spouse or civil partner"?
It would seem odd to apply the "Male no spouse or civil partner" capitalisation factor but the "Male - 50% spouse or civil partner" scheme factors?
Thanks for any input!
PS Table 5 does not extend past NRA 65 but I assume I can extrapolate to NRA 68 based on the figures