Purchase of notional years

L

luhotep

Guest
I work in a Dublin Hospital and have being paying for 5.5 notional years service towards towards my pension for over ten years because I would otherwise only have 34.5 years actual service at age 65. Will the new pension levy on public servants also be applied to the purchase of notional years? I have not been able to get an answer from anybody to date. Any information would be much appreciated. Yours. Very worried
 
luhotep, you dont state if you have contacted directly your salaries dept. Civil Servants have been advised to contact their specific Salaries Section with any Pension Levy Questions. Hope this is of some help.
 
Hi there, some of my friends and colleagues have contacted their specific Salaries Sections only to be told they didn't have any information for them!
 
Thank you Dafmurray. Indeed I have contacted the Salaries Section where I work only to be told they were unable to answer my query. Furthermore, they were unable to obtain any clarification from official sources. Many thanks for your reply.
 
luhotep said:
Will the new pension levy on public servants also be applied to the purchase of notional years?
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As announced, it already is applied. All pension contributions will now be paid out of the salary that remains after the pension levy has been taken off the top - this equally applies to basic superannuation and NSP contributions. They could hardly apply a double levy in the case of income which is used to pay for NSP. It just points to the ill thought out nature of the whole enterprise - it renders NSP an even better deal than before, in my view:http://www.askaboutmoney.com/showthread.php?t=104345
 
Thank you oysterman. What you say makes sense. However, is it possible that the cost of purchasing notional years will be increased further? Many thanks.
 
luhotep said:
Thank you oysterman. What you say makes sense. However, is it possible that the cost of purchasing notional years will be increased further? Many thanks.
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It would be appear to be a sitting target for an increase - NSP is increasingly widely seen as substantially better value than the AVC/PRSA AVC alternatives so will remain attractive even if they find it possible to cobble together some system of sticking a levy on it.
 
Can I just make sure I am interpreting this correctly since I am currently buying back NSP of 4 years? The pension levy will not be applied to the NSP, is that correct?

Also I have a minimal AVC of about per €20 week. The conventional wisdom seems to be in the current private pension climate, that I would be better of putting this on hold at the present time and re diverting it into NSP? Any thoughts?
 
The pension levy is applied to earned income.

Your payments for NSP are pension contributions.

How could the pension levy "be applied to NSP"???

It is applied to income, not expenditure.
 
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