Last Minute AVC advise

letitroll

Hi All

Looking for some guidance before I go seek full advise on the matter but was just looking for a high level view of my situation and what might be the smartest move in terms of maximizing my pension benefits specifically the lump sum for the future. I'm looking closely at a PRSA AVC.

First the simple part:

I'm 62 year old in the public service. I have full service years and more done. Noonan's extension to the next June makes next June my expected retirement date.

My job itself involves shift allowances. I have a base salary plus this shift allowance. For illustrative purposes lets say my salary grade is 70,000e.........with shift allowance added in - on average I gross 85,000e per year

Question 1:

Will my pension lump sum & yearly payments be based of my final grade salary or will some allowance be made for the fact that my role involved shift work

Q2 - same as above really but thinking of a last minute AVC and lump sum. Is the max tax free lump sum 1.5 my base salary or is it 1.5 gross average over three years and therefore if a gap exists between what my DB schemes pays (if they use base salary) and the average gross figure can I plug this with an AVC

Q3 -

I've read somewhere that although there is a tax free lump sum limit. There an opportunity to go above this limit and have it taxed at 21%. In my case then(as 41% PAYE worker) would there be an opportunity to fund an AVC at a tax relief of 41% now and take it as lump sum at 21% next year??

Now the complications:

I was legally separated a number of years and as part of the agreement my ex-wife was granted c. 1/3 of my pension and 1/3 of my lump sum.

As the above 1/3 of my pension will not now accrue to me but rather my ex-wife does this open up an opportunity for me to plug this 1/3 "gap" in my lump sum with an AVC which I can draw down tax free

I guess my question is from pension / tax point of view will revenue look at that 1/3 of my lump sum that goes to my ex and not assign it to me for the calculation of maximum benefits?? i.e. will they discount this money as it will never go to me.

If the above is the case then a 1/3 gap opens up in terms of my maximum lump sum benefit and I could use an AVC to fill this in a tax efficient manner?

Finally any recommendations around a financial advisor who understands both public service benefit calculations and might also be familiar with legal separations etc as there impact on retirement etc.

Sorry for long post and thanks in advance for any guidance

coylemj

You're in the public service, surely the union can advise you on this?