Employee scheme and AVCs to PRSA

[confused87]

I thought it was % of pensionable salary was revenue limits as when I select say 20% avcs, the company take 20% from my pensionable salary and contribute it to dc pot. Seems so that revenue limits apply to overall uscable figure and not % per individuals scheme. In my case some people would not be maxing out avcs as they think so as the % contributions in my scheme are not from uscable amount.

 

[S class]

Seems so that revenue limits apply to overall uscable figure and not % per individuals scheme

This is correct. All your non pensionable earnings are included.

Only earned income counts. If you have unearned income e.g. share dividends or bank deposit interest, this is not included.

 

[confused87]

Thanks for the clarity. Alot of people in my company are not maxing out like they think as the % is based on scheme rules not revenue rules.

 

[S class]

You should spread the word that they can contribute more.

 

[confused87]

I certainly will to the few I know who think they are maxing it out, lot of people don't even do avcs.

 

[S class]

Also tell them that they can max out for 2024, provided they pay in the AVCs and claim the tax refund before 31st October 2025.