Scope for AVCs, when not allowed NSP?

P

Protocol

Registered User
Messages
4,308
Scenario:

You started paying into public sector superannuation at age 21, say, and so won't have any missing years at age 65.

Can't buy notional service, as won't have any missng years at age 65.

Can you use AVCs to fund for early retirement at, say, 56?
 
No.

Could use AVC to increase Spouse Pension/lengthen guarantee period/increase escalation (maybe).
 
I think there is likely to be very considerable scope:

1) Revenue accept that the 150% lump sum is worth much less than the 16.67% of final salary in ongoing pension foregone.

2) Spouse is only paid at 50% of pension on death of pensioner whereas Revenue permit 100%. You can fund for the shortfall.

3) If the scheme is integrated (i.e. the pensioner will receive his/her contributory OAP as part of - but not in addition to - their occupational pension) the value of the OACP can be seperately funded by means of AVCs.

Most public servants would be unable to afford the level of contributions to provide for all the above. So there is almost unlimited scope for you to make AVCs (subject to annual %age limits on contribution).

You can worry about how the AVCs get used at retirement - even if it's early.
 
You are not allowed to fund on the basis of early retirement.

As I said, there may be scope on the basis of normal retirement, but funding for early retirement is not allowed.
 
Hmmmm........

Then how can we explain that the wife, a primary school teacher, has an AVC from Cornmarket with a retirement age of 56?
 
I am really trying to get my head around all this.

I have come to the conclusion that you can't buy notional service if you won't be missing any years at age 65 (and at age 60 for teachers).

OK, fair enough.

But it seems that even if you won't have any misisng years at 65, you CAN still take out an AVC.

My question is: say you retire at 56, at less than full pension, can you use the AVC fund to bring you up to full pension?
 
You can't fund in excess of revenue maximum contributions to target a revenue maximum pension at 65.

So, you can't fund for Revenue max early retirement at 56 if it is a higher contribution rate than that required to target Revmax at 65...but then again Cornmarket may not be overly stringent about this, I really do not know.
 
You must log in or register to reply here.
Back
Top