Refund of contributions to Spouse and Child scheme under SPSPS for unmarried members
- Thread starter Tadhg22
- Start date
Sorry, on my phone and having issues with formatting. I note that the spouse and child scheme is incorporated under one of the other deduction headings under the SPSPS, but my question still stands. Seems unfair if this refund is not give for members who remain unmarried for the duration of their tenure.
I don't think so.
Spouses’ and children's pension scheme
www.pensionsauthority.ie
No. I'm pre 95 in the HSE and asked this a few years ago.
Remember you're getting tax relief.
There was an option given a while back (maybe circa 2006) for unmarried civil/public servants to decide whether they would opt to receive a return of their contributions on the basis that if they married after retirement their spouse would not have any entitlement to half their pension . The alternative was to forego the refund and if they married after retirement their spouse would be entitled to receive half their pension. You had to decide what the chances were of you being married at your retirement age and beyond. I opted for the former on the basis that should I marry later in life I would expect my partner to be finanacially self sufficient! I will be entitled to a refund of all my contributions on retirement but I think this option may no longer be available.
I believe there was an option in the HSE/Health Boards to opt in to S&C if you weren't in it.
A colleague didn't avail of it as she was young and single. She did get married and had 2 kids but wasn't allowed in.
flyingfolly
Registered User
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- 140
Hopefully you don't mind me asking a similar-ish question too. My wife got her lump sum and 15k of the 45k lump sum was deducted for Spouse and Child (she retired early under Ill Health).
I read its possible to claim tax relief on this sum, but not sure how if she's no longer paying tax. Do you actually get it as a refund? What amount of it is refunded? Sorry probably a silly question...
I read its possible to claim tax relief on this sum, but not sure how if she's no longer paying tax. Do you actually get it as a refund? What amount of it is refunded? Sorry probably a silly question...
When did she retire?
flyingfolly
Registered User
- Messages
- 140
Last year
She will get a tax refund on the full amount of deducted Spouse and Child provided there was more tax paid on her wages than this refund amounts to.
The tax relief will be at the marginal rate she paid tax at i.e. it could be at 20% or 40%.
I think that wages over the past 10 years are examined to check if refund is available.
Apply to revenue to get the refund.
The tax relief will be at the marginal rate she paid tax at i.e. it could be at 20% or 40%.
I think that wages over the past 10 years are examined to check if refund is available.
Apply to revenue to get the refund.
flyingfolly
Registered User
- Messages
- 140
Thanks. So she was on 40% tax over the past 10 years. That would mean potentially, she'd get 40% of 15k back (so approx 6k)?
Revenue method of tax relief for SCPS deducted from tax free lump sum.
Tax Relief for Lump Sum Contributions to Spouses and Children's Pension Scheme
Deducted from Pension Gratuity
As the lump sum contribution to the SCPS is deducted from your pension gratuity, tax
relief will be given by apportioning the amount deducted over the 5 tax years ending
on the previous 31 December, up to a maximum of the relevant age/earnings limit for
each year.
If any part of the lump sum deducted remains unrelieved at that stage, further relief may
be available.
In practice, the Revenue normally grant the relief as follows:
1. The lump sum contribution is to be allowed first by apportioning it evenly over, and
treating it as paid in, the last 5 complete years ending on 31 December immediately
prior to leaving the company.
2. Where, by reason of the age-related or earnings limits, part of the lump sum
contribution cannot be allowed in any year in accordance with Paragraph 1, the part
not so allowed is to be relieved -
(i) in the other years (if any) of the 5 year period in which the relevant
limit has not been reached, beginning with the tax year closest to the date
of departure. Relief is to be given up to the balance of the relevant limit in
each year,
(ii) secondly, any balance not allowed at (i) is to be allowed in the preceding
tax years commencing with the year preceding the 5 year period, but
subject to the statutory 10 year time limit i.e. in year 6 up to the balance of
the relevant limit, then in year 7 and so on until the contribution is fully
relieved or year 10 is reached,
(iii) finally, in the year of departure up to the balance of the relevant limit for
that year.
Any amount of the contribution remaining is not available for relief.
Tax Relief for Lump Sum Contributions to Spouses and Children's Pension Scheme
Deducted from Pension Gratuity
As the lump sum contribution to the SCPS is deducted from your pension gratuity, tax
relief will be given by apportioning the amount deducted over the 5 tax years ending
on the previous 31 December, up to a maximum of the relevant age/earnings limit for
each year.
If any part of the lump sum deducted remains unrelieved at that stage, further relief may
be available.
In practice, the Revenue normally grant the relief as follows:
1. The lump sum contribution is to be allowed first by apportioning it evenly over, and
treating it as paid in, the last 5 complete years ending on 31 December immediately
prior to leaving the company.
2. Where, by reason of the age-related or earnings limits, part of the lump sum
contribution cannot be allowed in any year in accordance with Paragraph 1, the part
not so allowed is to be relieved -
(i) in the other years (if any) of the 5 year period in which the relevant
limit has not been reached, beginning with the tax year closest to the date
of departure. Relief is to be given up to the balance of the relevant limit in
each year,
(ii) secondly, any balance not allowed at (i) is to be allowed in the preceding
tax years commencing with the year preceding the 5 year period, but
subject to the statutory 10 year time limit i.e. in year 6 up to the balance of
the relevant limit, then in year 7 and so on until the contribution is fully
relieved or year 10 is reached,
(iii) finally, in the year of departure up to the balance of the relevant limit for
that year.
Any amount of the contribution remaining is not available for relief.