Cornmarket AVC

Hi - Regarding the Supplementary Pension - Is this something that is paid by ones employer (within the specified conditions) up to 65 or 68 if opting to voluntarily retire at 60? Not being entitled to the State Pension until 68 means I am unsure whether I would have to fund a gap between 65 and 68 or not? Thanks.
 
The Supplementary Pension may be payable to a public sector Class A PRSI employee (in retirement) after they reach normal retirement age - 60 for pre-2004 people or 65 if post-2004. You apply to your ex-employer (who is paying your occupational pension) and you will be required to show you meet the conditions.

Have a look at the Department of Ed Explanatory Note here - it is pretty much standard (but the application procedure may vary across employers) :
https://www.education.ie/en/Educati...ns/Supplementary-Pension-Explanatory-Note.pdf
 
daithicuc said:
I am just trying to clarify if the Supplementary Pension is paid up to 65 or 68?
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It is payable in lieu of a payment from the Department of Social Welfare in a case where the retiree does not qualify for same. The relevant SW payments are generally Jobseekers Benefit and Contributory Pension.

So, if your normal retirement age is 60 (and you take retirement), and you are not working afterwards, you can apply for Jobseekers. This only lasts for 9 months. You can then apply for the Supplementary Pension. If granted (and you continue to meet the conditions in the meantime) this remains in payment until the State Contributory Pension kicks in (at whatever age is relevant to you - 67 or 68).
 
Conan said:
Early Riser
A civil servant retiring on a salary of €54k with full service will get :
- a pension of €27k, plus
- a tax-free lump sum of €81k (150% of €54k)

In those circumstances there is little or no scope to invest any AVCs. The above is equivalent to Revenue maximum benefits. One can only invest AVCs if the benefits being provided under the main scheme are less than the Revenue maximum. “Overfunding” through AVCs is not allowed. So there is no scope to drawdown an additional €8k pa in your example.
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Sorry for dredging this up...
So are you saying, for example, that a public servant retiring with let's say near full benefits could only use an AVC to fill any shortfall to full PS pension?
Does it work differently in private sector and occupational pension scheme?
I thought the whole concept of AVCs was to be able to build up extra pension?
 
Hi,
Are there any options if you overfunding your AVC through over performance of the invested fund (technology) I will have 38 years service at 60 (including professional added years ) and invested in a New Ireland AVC during 2006-09 and the fund has flown ,worth 350k today..
I had thought that I could invest in an ARF until today and have never had any communication from the trustees or New Ireland warning of overfunding.....

Thanks
 
Comeby said:
Hi,
Are there any options if you overfunding your AVC through over performance of the invested fund (technology) I will have 38 years service at 60 (including professional added years ) and invested in a New Ireland AVC during 2006-09 and the fund has flown ,worth 350k today..
I had thought that I could invest in an ARF until today and have never had any communication from the trustees or New Ireland warning of overfunding.....

Thanks
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That's one for your financial broker who sold you the AVC. Or for New Ireland if you dealt directly with them. They need to do a maximum funding calculation which will take into account your salary, fluctuating pay elements (including BIK), service with the employer, expected benefits from the main superannuation scheme and then compare them with Revenue upper limits. You might not be overfunded.
 
Dave Vanian said:
That's one for your financial broker who sold you the AVC. Or for New Ireland if you dealt directly with them. They need to do a maximum funding calculation which will take into account your salary, fluctuating pay elements (including BIK), service with the employer, expected benefits from the main superannuation scheme and then compare them with Revenue upper limits. You might not be overfunded.
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Thanks Dave ,I have asked HR for the capital value of my DB as New Ireland have requested same.I had no concerns about being over 2m in total funding until I picked up(maybe wrongly) on various threads that the 2m does not apply to civil servants and full service plus lump equates to the max drawdown of 66% salary.
 
Comeby said:
Thanks Dave ,I have asked HR for the capital value of my DB as New Ireland have requested same.I had no concerns about being over 2m in total funding until I picked up(maybe wrongly) on various threads that the 2m does not apply to civil servants and full service plus lump equates to the max drawdown of 66% salary.
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The 2m does apply to civil servants. That's what the capitalisation factors are for.
 
Comeby said:
Thanks Dave ,I have asked HR for the capital value of my DB as New Ireland have requested same.I had no concerns about being over 2m in total funding until I picked up(maybe wrongly) on various threads that the 2m does not apply to civil servants and full service plus lump equates to the max drawdown of 66% salary.
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In my earlier reply, when I referred to a maximum funding calculation, I wasn't thinking about the €2 million Standard Funding Threshold (SFT). Your financial broker or New Ireland should be able to do a maximum funding calculation based on your salary, fluctuating pay elements (including BIK), service with the employer, expected benefits from the main superannuation scheme. That will determine whether or not your AVC causes you to be overfunded.

The €2 million SFT is a separate issue and if your benefits exceed this, it needs to be dealt with separately.
 
Comeby said:
I picked up(maybe wrongly) on various threads that the 2m does not apply to civil servants and full service plus lump equates to the max drawdown of 66% salary.
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You can have lump sum of 150% and pension of 50% of earnings + an ARF.
 
That's good news, thanks for the answers.
I had never heard of the maximum funding contribution calculation previously. Is this to ensure you don't exceed the 2m threshold?
 
Comeby said:
I had never heard of the maximum funding contribution calculation previously. Is this to ensure you don't exceed the 2m threshold?
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No. There are several funding checks.

(1) A maximum funding check taking in your salary, fluctuating pay elements (including BIK), service with the employer and expected benefits from the main superannuation scheme. That will determine whether or not your AVC causes you to be overfunded. Unless your salary is solid six figures and you have long service in the scheme, this calculation will produce a result that is well less than €2 million. But your AVC might or might not be overfunded based on this maximum check alone.

(2) The €2 million Standard Fund threshold check. This is a separate calculation to (1) and has a different impact if you exceed the €2 million.

They are two different and separate calculations and you need either your financial broker or New Ireland to do both for you.
 
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