Your are confusing two numbers. The maximum retirement lump sum she can get is 150% of Final Salary (so 150% of €61,000 = c€93,000). So based on that, I see no point in investing AVCs, unless she has other non-pensionable income such as bonuses, BIK etc.Thank You Steven, her Salary is €61,000 the upper limit as per Revenue is €115,000. Does that constitute a funding gap. Her Lump Sum will be around €93,000.
Can you please expand on this because I'm confused.There will be headroom as you can make AVC's to fund for a full pension for a spouse instead of the 50% spouses pension included in Public service pensions.
Is it that simple?Public sector pensions only allow for the spouse of a deceased pensioner to get half the value of their pension. Maximum Revenue allowable pension for the spouse of a deceased pensioner is 100% of their pension. This allows AVC funding to be made to provide for the remaining half of the spouses pension which is not included in the Public sector pension.If the Public sector worker does not die before reaching pension age the AVC funds can be used to purchase an ARF or an Annuity. What this actually means is that any public sector worker with 40 years service at retirement age still has scope to make large amounts of AVC's.
Yes it is that simple. I got this advise directly from the Pensions Ombudsman.Is it that simple?
if the employee is getting the max pension but invests AVCs ostensibly to fund an additional reversionary spouses pension (payable on the members death in retirement), but is able to invest the AVC fund into an ARF on retirement, that means that they have access to an additional pension income bringing then over the Revenue max? Also, I’m not sure it’s possible to use the AVC funds just to buy an additional 50% reversionary pension ( without buying a member pension).
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