Last Minute AVCs

[PS2021]

Would anyone know if there is some scope for public sector employees nearing retirement to increase their lump sum tax-free threshold under Revenue rules by making allowance for the reduction in basic pay over the past ten years and using dynamization /indexation of the pay difference.

 

[Conan]

Under Revenue rules, one of the definitions of Final Salary is the average of any three consecutive years ending not later than 10 years prior to retirement. The resulting figure can then be dynamised by CPI up to retirement. This might result in a higher salary figure than the retirement salary, thus allowing a little scope for a last minute AVC fo fund 150% of the difference.

 

[PS2021]

Thanks Conan. Very helpful.