Pre 1995 Public Servant - AVCs

J

Joey The Lips

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I'm hoping for a bit of advice on here. I have read most of the previous threads in relation to this and they have been most helpful however I'm not sure I understand it fully.

I'm a pre 1995 Public Servant with 32 years service. I hope to retire early (aged 60) when I will have circa 37 years service. If I go ahead with that decision I will be down down €2500 on my yearly pension and about €7000 on my lump sum.

I currently have €35000 in AVCS and hope to have between €70000 and €80000 before I retire. I have 171 A stamps prior to joining to Public Service. My intention is to retire at 60 and take out a €5000 ARF for 7 years thus earning 520 stamps by aged 67 and claiming a pro rata state pension. I'm unsure as to the amount of the state pension I will be entitled to. The remainder I would just take out as a lump sum.

I suppose my question is would I be much worse off by retiring early? And could I also take up a part time job when I do retire and how this would affect by tax etc.

Thanks in advance for any advice.
 
Joey The Lips said:
And could I also take up a part time job when I do retire and how this would affect by tax etc.
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Your combined occupational pension, employment and ARF income would be subject to tax and USC in exactly the same way as your current employment income. There would be no PRSI on the pension part of your income.

Joey The Lips said:
thus earning 520 stamps by aged 67 and claiming a pro rata state pension. I'm unsure as to the amount of the state pension I will be entitled to
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If you get to 520 full rate contributions at 67 you should qualify for the State Pension at 1/4 (10/40) of the full State Pension rate for a 67 year old. That's €313.40/40 as of now.

A Pro Rata Pension is different and you should qualify for that simply by reaching 260 full rate contributions (and combining them with your D or modified rate contributions): https://www.citizensinformation.ie/en/social-welfare/older-and-retired-people/pro-rata-pensions/

I am sure @S class will be along to clarify this all better.
 
With 520+ full rate paid (class A or S) you will qualify under the combined TC and YA pension calculations. You might get a very small percentage of the YA.

You will get some change of status credits, possibly up to 104, but some of these could overlap with your class S from your ARF. You are likely to also have some pre entry credits.

So you could get between 11/40th and 12/40th of the COAP.

Definitely take up some part time work if this suits you. This has no effect on your class S Prsi from your ARF. You can use class A Prsi contributions from the employment to allow you to qualify for Benefit Payment 65. Make sure to sign on for Jobseekers credits for the periods when you are not employed. Jobseekers credits are allowed alongside your class S Prsi from your ARF.

The possible COAP available by retiring early will more than make up for the loss of some of your occupational pension.
You can also benefit more by qualifying for BP65. This can be paid alongside your ARF drawdowns and occupational pension.
 
CharlieMac said:
€313.40 / 4 ?
That much per week, if you have at least 520 Class A "stamps"
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Yes, if they defer to age 67.

If a person claims their COAP before the end of the phase out of YA, they could get more.

520 Class A or S will get a person with a Prsi contributions time span up to 52 years into the average 10 band.
 
Thanks to all for your insightful replies. I can't seem to thank or quote your posts. Perhaps it's because I'm only a new member. I've a lot more reading to do on the subject especially the pro rata pension and BP 65 side of things. Unfortunately, I might come back in a day or two with a further query or two but in the meantime I appreciate the replies above.
 
@Joey The Lips
Read this thread for more information about your situation.

Pro rata pension applies if you have between 260 and 519 class A and S.

If you reach 520 class A and S. Your COAP will be calculated using the normal calculation methods. This will result in a higher COAP.

Post in thread 'Pre 95 retiring with 30 years service'

Pre 95 retiring with 30 years service

Am working part time for the past few years and want to keep doing so until retire at 60. Salary is currently about 32k and on lower tax bracket. When should I start paying into a lump sum AVC to bring upto the 1.5 times salary when I retire. And is the purpose of this so that I can claim 20%...
www.askaboutmoney.com
 
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