Calculation of partial year value on Max TFLS value allowed by Revenue

[joecoie]

In the calculation of the maximum Tax Free Lump Sum value allowed by Revenue there is an 'up lifted' scale table used; does the revenue calculation consider partial years & if so, how is the value for partial year arrived at?

Background; SNA in pre-2013 pension scheme; joined in 2010; will have 15.6 years' service at time of retirement in Sept 2026. Looking to start & contribute to an AVC to maximise the TFLS achieved as the pension scheme LS value will be lower than the max value allowed by revenue.

 

[AAAContributor]

In the calculation of the maximum Tax Free Lump Sum value allowed by Revenue there is an 'up lifted' scale table used; does the revenue calculation consider partial years

The uplifted scale for Lump Sums contained in Revenue Pensions Manual Chapter 7 refers to whole years of service.

I can't see any reference to interpolation of intermediate 'Eightieths'; in your case of 15.6 years interpolating between 72/80ths and 81/80ths.

In another Pensions Manual (Chapter 5, Tables 4 & 5), where interpolation is catered for, it is specifically stated: "Intermediate factors can be derived by interpolation." However, this is to interpolate capitalisation factors for defined benefit pensions that increase at X.X% per annum, and not by age or years of service.

Looking to start & contribute to an AVC

Put the question to your AVC provider. They'll have access to a pensions technical colleague who will confirm if there is any such concessionary treatment for partial years.

 

[joecoie]

Thanks again AAA..., I'm now just looking at finding AVC provider- will ask them to confirm.