maximising lump sum on retirement

C

cream

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Is a civil servant on retirement also allowed to include overtime and other allowances earned in the employment as well as outside earnings e.g share dividend in calculating the maximum tax free lump sum? (this would be needed to have an appropriate avc in place )
thanks
cream
 
Firstly "unearned income" such as dividends, rental income etc is not pensionable.
Under Revenue rules, any income that is taxable as PAYE (including overtime and allowances) is capable of being pensioned. However such iincome is not included in pensionable salary for calculation of pension benefits for civil servants. Therefore if you want to maximise your tax-free lump sum (to be calculated as 150% of gross PAYE earnings) you will need to set up an AVC plan to bridge the gap between what the Civil Service scheme pays (max 150% of base earnings - I think) and the Revenue max.
 
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