can xtra 5 years service, i.e 45/60 can be accumulated under Teacher's Superannuation

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jfitzer

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Does anyone know if the extra five years service, i.e 45/60 can be accumulated under a Teachers Superannuation pension? Any info would be very much appreciated. Thanks
 
Re: Teachers Superannuation

I would expect that service is capped at 40...and the pension based on this max is 40/80 (not 40/60) together with a tax-free lump-sum of 40*3 = 120 / 80...in other words a TFLS of 1.5 times final pensionable salary.
 
Re: Teachers Superannuation

But is there not the facility to allow accrual of additional late retirment service to accru extra 5/60 overall funding with comutation of taxfree extra five year of 15/80 as there is in other schemes?
 
Re: Teachers Superannuation

The revenue do not allow a pension in excess of 40/60ths, at any retirement age, 2/3 is the revenue maximum.

Did you check with the administrator of the pension scheme?
 
Re: Teachers Superannuation

Late retirement does allow accrual of an extra five year unless it has changed in the last couple of year. I am just not sure if it the Teachers Superannuation allows it.
 
Re: Teachers Superannuation

It does so long as the +5 does not bring you over 40.

You can't exceed 40/60ths in a private sector scheme.

If you are talking about a special allowance for public sector schemes, you should check with the administrator of said public sector sheme.

But you can't go over 40/60 (for pension) nor over 120/80 (for tax-free cash).
 
Re: Teachers Superannuation

CapitalCCC said:
You can't exceed 40/60ths in a private sector scheme.
Click to expand...

Not sure if you have access to the Revenue's Pension Manual or not.

In Chapter 8 (service after Normal Retirement Age), it states the following:

If total service exceeds 40 years, each year in excess of 40 falling after NRA with a limit of 5 may earn a further 60th of final remuneration and the maximum then becomes 45/60ths of finalremuneration at the actual date of retirement.

Example A
An employee who has served for 42 years up to NRA and 5 years thereafter may receive a pension of 45/60ths of his final remuneration at the actual date of retirement.

Example B
An employee who has served for 38 years up to NRA and 5 years thereafter may receive a pension of 43/60ths of his final remuneration at the actual date of retirement.
 
Re: Teachers Superannuation

Yes I have it.

Do you think that the tax-free lump-sum lump-sum go over 1.5 times final salary at NRA?

I don't think it ever can.

Also, if the scheme rule sets a max for service at 40, I do not think the revenue rule will impact this (I think that it is the scheme rule that matters)?
 
Re: Teachers Superannuation

This rule should over rule the scheme rules but you need revenue approval. The TFC can go over as in my previous post, my question remains regarding Teachers Superannuation. Suppose I should write to them.
 
Re: Teachers Superannuation

Are you planning to retire after NRA?

If you want to retire at NRA, even with 45 years service, the 40/60 rule applies (as does the 1.5 times rule).
 
Re: Teachers Superannuation

Sorry CapitalCCC, it is not me it is a client, I told them of the rule a while back but also told them I was not sure if it applied to Teachers. Your post initially got me thinking that the rule had been abolished and I had advised incorrectly, its just one of those obsecure rules that very rarely is applicable as you mush have 40 years already to qualify. The clients accrual of 40 years was reached two months ago. I did tell them that relevant years for this purpose do not accrue until after 60. I downloaded many of the Teachers Superannuation Acts but they are an absolute minefield, I know that the rule applies in Northern Ireland for Teachers as I managed to find confirmation of this but the southern Teachers Scheme info is vague to say the least. As the rule is available to all occupational schemes I cannot see why it would not apply to the Teachers but would love to find out for definate and if not I would love to know why.
 
Re: Teachers Superannuation

Why not seek clarification from scheme administrator??
 
Re: Teachers Superannuation

Guess that is my next port of call, just thought someone might have come across it before, thanks anyway.
 
Re: Teachers Superannuation

I presume person looking to retire after NRA?
 
Re: Teachers Superannuation

Yeh, if it is allowable under the Teachers scheme, they will have 45/60 with of course comutation of TFC or revaluation, that raises another question, I wonder do you select the method of benefits when seeking approval, is the approval on an individual basis or on the scheme as a whole. Its years since I looked at the rule and this is the first case ever I have see where it can be used so I have never sought aproval. Bit of a learning curve, but chances of using it again are slim.
 
Re: Teachers Superannuation

Teacher Scheme is 80ths (and a lump-sum based on 3/80)...not 60ths...well anyone I have ever seen is anyway!!??
 
Re: Teachers Superannuation

Thats correct. Its based on 80th for teachers. The max is 40/80 regardless of how many years before or after NRA.
 
Re: Teachers Superannuation

I know the TFC is based on 80th, as you will see from my previous post the TFC for extra service is 15/80. Max overall funding is 40/60 under all occupational schemes of which commutation is used for TFC purposes, this is where the benefits are reduced to 40/80 i.e. half salary plus 1.5 time tfc. The question still remains whether the scheme allows late retirement rules to accrue the extra 5 years. They will have their 1/2 salary plus max tfc 1.5 plus an extra 5/60 with commutation for tfc based on 15/80th thus reducing the pension element. Sunshine, have you seen this for Teachers scheme confirming that the late retirement rule under revenue rules will not apply? I know it definitely applies to the Northern Ireland Teachers pension and applies all other occupational pensions (in the private sector anyway) where approval is sought. As far as I was aware this rule should override the scheme rules.
 
Re: Teachers Superannuation

It is scheme rules that decide benefits NOT revenue rules!

The revenue rules only set out the max within which a set of scheme rules must lie...does not mean that the scheme needs to allow "n" go over 40.
 
Re: Teachers Superannuation

Sorry if I am a pain but my point in my last post is that 40/80 plus 1.5 times salary is exactly the same as maximium benefits of 40/60. If you take your TFC your 40/60 is reduced to 1/2 salary, that all I meant. Other scheme rules have the same max 40/60 and the late retirement rule also applies with revenue approval. But not sure if the scheme must seek apporval as a whole or is it on the individual.
 
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