Hi, thank you for replying to my question. I have been in the ps for twenty six years continuous service. I am in class A1. I am permanent for that amont of time. My salary is 36,000, I pay into the regular pension. I am worried that I may have to leave before retirement age as I won't be physically able to work in this field. I would like to be able to draw a weekly sum similar to my take home pay. Could you explain to me the AVC.
Based on the above, I take you are a member of one of these two schemes (check for yourself):
http://www.education.ie/en/Educatio...sions/FAQ-for-Teachers-in-Primary-Schools.pdf
http://www.education.ie/en/Educatio...-Special-Needs-Assistants-and-Caretakers-.pdf
You would have a normal (minimum) retirement age of 60 and your pension would be coordinated with the Social Welfare system. I doubt that you will be able to achieve a pension similar to your current take home pay. Here are my approximate estimates for your pension at 60, should you opt to take retirement then. (You could continue to 65).
Assumptions ;retiring at 60(normal), 37 years service, salary €36000.
At 60 this should yield a pension of approximately €6670 pa. You would also be able to claim a supplementary pension from the Department of Ed of approx €10000 pa. This gives a total of approx
€16670. Before claiming your supplementary pension you would be expected to exhaust any Social Welfare payment to which you may be entitled. This is currently Jobseeker's Benefit, payable for 9 months. When you reach State Pension age (68 by then) you would claim it and the supplementary pension element would cease. You would also be eligible for a tax free lump sum of approx €50000, at retirement at 60.
Taking actuarially reduced early retirement is allowed under your scheme but you may not consider it financially viable. These are approximate figures for age 55, as an illustration (32 years service, same salary). Your actuarially reduced pension at 55 would amount to approximately €4480 pa. You may qualify for Jobseeker's Benefit for 9 months but you would not be able to claim the supplementary pension until age 60, when it should amount to an additional €8670 pa. Your tax free lump sum at 55 would be approximately €38500.
I note you refer to your fitness for the job a number of times. There is a provision in the scheme for early retirement on medical grounds This is more generous. I don't if there are any issues that might lead to you qualify now are later. There is more about this in the documents linked above. There is also some information on AVCs and "notional years", which are two ways of buying additional pension benefits while you are still working. Any contributions you make are tax deductible.