Post 2004 and new Pension

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Pinkpanter

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I have 10 years service in a post 2004 pension. I resigned my post for family reasons.
I have an AVC and was discussing with my pension company re if I return to PS on a new contract what happens to my old pension.
They said at my new pension age 68 (at present - caveat could be higher)I could draw benefits from both pensions.
I said this would make returning to PS most unattractive? Is this true? I assumed at 65 I could draw my 10 years service!
 
You can only access your AVC pot when you draw down your main scheme benefits. If you retire from the PS at 65 or 68 that's when you also draw down the AVC pot. The two benefits are linked.
 
Yes I was aware of the that re AVC. My main query was if I return to PS on new scheme it seems I can only access AVC and my ten years service at the new retirement age i.e. 68. Surely the old PS scheme and new PS scheme are not linked. It makes returning to PS very unattractive to me.
 
Pinkpanter said:
I have 10 years service in a post 2004 pension. I resigned my post for family reasons.
I have an AVC and was discussing with my pension company re if I return to PS on a new contract what happens to my old pension.
They said at my new pension age 68 (at present - caveat could be higher)I could draw benefits from both pensions.
I said this would make returning to PS most unattractive? Is this true? I assumed at 65 I could draw my 10 years service!
Click to expand...

Have a look at the attached DOC, especially Sections A 2, A 4, A 5 and I 31 :

http://www.per.gov.ie/wp-content/uploads/FAQ-Single-Scheme-Pension.pdf

My reading of this is that once the gap in service is greater than 26 weeks you will be joining the new single scheme, but you should also retain your preserved benefits from your previous scheme. When you claim your benefits from the previous scheme at the age prescribed by that scheme's rules, your benefits may be subject to abatement, as outlined at I 31. I know little about AVCs but I can't see why you could not access your AVC when claiming your preserved pension benefits, even if these benefits are subject to abatement. The following document also refers:

http://www.per.gov.ie/wp-content/uploads/Letter-Chapter-4-Commencement-Orders.pdf
 
What does abatement mean?

So if I return to PS with new scheme -at 65 I will lose out on my preserved benefits until I reach the second retirement age (68 now could be higher).

So therefore if I want to draw benefits at 65 (preserved ret age), I can only do that if I don't return to PS i.e. If I take a private sector job?
 
You can (and, I think, must) draw down your old pension at 65, if this is the preserved age attached to it. Abatement (as I understand it) would only apply if the total combined amount of this pension plus your new (current) public service salary exceeds the current salary attached to your old job. Example at 65 :
-New public service job salary = €40000
- Annual Pension(old) at 65 = €8000
- Total = €48000

If the current salary attached to your old job is now €50000, then no abatement applies. However, if it is €45000, then there will be an abatement to limit the total amount in payment to you to this figure. Abatement would cease at 68. (I am assuming that the combined total of your public service years will not exceed 40). As far as I know, the lump sum is not affected.

I take it you did not resign your original job under one of the Incentivised Early retirement Schemes. If so, I think further restrictions apply.

Going back to to your original query. If your AVC fund is specifically linked to your original job/pension scheme then I assume that you can draw it down when this pension becomes payable, ie, at 65. Maybe you should check again with your Pension Adviser - I suspect many of them may not be familiar with this relatively new scenario (ie two separate public service schemes/pensions).

I should say again that this is my reading of the documentation - I have no experience of the new scheme or the application of abatement. Someone else here may be able to clarify.
 
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