Single Public Service Pension Scheme

divillybit · 30-10-2023 08:01AM

@Novice Self-Build I can't advise on the above but I did meet with an independent pension consultant as I was looking to buy additional years but to buy additional years service was prohibitively expensive. It made much more sense to set up a private pension and start paying into that. I'm in my late 30's and only joined the Civil service last year.

I ended up getting a new private pension being set up with the intention to put 500 euro a month towards it. Have a different pension from my old employer with about 30k in it. That 30k is being moved to a different pension provider. What I learned from the pension consultant was that legally I can't roll my pension pot from my previous employment into the new scheme I'm not paying into.

nhg · 30-10-2023 08:53AM

Tax Relief:

If you are planning on receiving Tax Relief on your pension contributions bear in mind that an AVC (clue is in the name) is tied to a particular employment & tax relief is calculated based on your age in that year and the gross income in that employment less any contributions already paid through your salary and/or any additional monthly payments.

You can pay as much as you like into an AVC/PRSA /RAC pension but you mightn’t get tax relief on it unless you have a taxable income to offset it against. Remember the financial advisor is getting a cut from your contribution so may be pushing you to the max - not everyone is 100% trustworthy & honest….. if unsure get a 2nd opinion…..

To claim any pension tax relief in a previous year, the payment MUST be made & the relief claimed through your income tax return (eForm 11 self-assessed or eForm 12 if PAYE) from Revenue by 31st October of the following year i.e. to claim additional tax relief for 2022 the pension payment must be made by 31st October 2023 & the claim submitted in your 2022 income tax return by 31st October 2023 (either through MyAccount or ROS).

There is no extension to filing date for pension contribution claims, the extension date is for online self-assessed (eForm 11) income tax filers only (if they have pension contributions to claim they must have paid & filed before 31/10 also)

nhg · 30-10-2023 09:25AM

If your tight on time & haven’t received the Pension Contributions Certificate from your policy provider, simply submit all the details including policy number etc on a word doc or excel to Revenue before 31st October & submission the proper Policy Certificate once you receive it

Also bear in mind that you might be receiving tax relief on pension contributions now but you might have to pay income tax on some of your pension when drawing it down, up to certain limits are tax free & your State Pension Contributory is also taxable & will be using up some of your tax credits…..

30-10-2023 09:43AM

https://www.boards.ie/discussion/comment/121259555#Comment_121259555

My reading of that is that it would cost €120 per month to buy €1,000 pa in additional pension. Open to correction as I've never advised on purchasing additional pension in PS.

A (rough) quote for a low cost AVC PRSA (100%/1%), €120pm level, with a growth rate of 4.6% pa would generate a fund of circa €33,500 after 17 years. What level of annuity pension that would buy in 17 years time is anyones guess. If it was right now, it would be circa €1,100 pa for two 65 year olds.

Some people like certainty. Some people may take the risk that the fund value of the PRSA might be higher/lower and like the possibility of ARFing the fund.

If you're going to buy an AVC or AVC PRSA with 95% allocation and 1.5% AMC, and then stick it in a cash fund, buy the certainty instead.

Hotblack Desiato · 31-10-2023 03:53AM

https://www.boards.ie/discussion/comment/121300640#Comment_121300640

The whole point of tax relief on pension contributions is that it's the gross amount that's invested.

It's far far better to be taxed on the way out rather than on the way in. Especially as few will have a large enough pension to pay much higher rate tax if any at all, and once over 70 you get higher tax allowances.

Novice Self-Build · 05-11-2023 05:37PM

I am going to put 10k in towards my lump sum and another 10k against increasing my monthly payout. At the very least it will mean 10k to my pension instead if the tax man.

wads35 · 09-12-2023 12:18PM

Do not pay into an AVC without first getting some serious advice. I'm the same as you on the same pension. You should be getting a pension statement every year telling you what your pension and lump sum currently stand at

An AVC has management fees and other fees each year . It's also at risk of decreasing in value .

However you are able to make one lump sum payment into your public service single scheme pension . This is not at any risk as it's guaranteed by government and you still get the tax breaks

But take advice 😉

Only found this out myself in the last few weeks

valarmorghulis · 02-01-2024 01:36PM

Hi all,

Would anyone have any advice in terms of purchasing "referable amounts". I am just about to join the public service at 36. I understand that under the Single Pension Scheme it is not open to you to purchase Notional Service. However, you have the option to purchase referable amounts.

I also understand I could make Additional Voluntary Contributions (AVC’s) to a separate Revenue-approved pension arrangement if I wished to independently increase my retirement benefits outside of the Single Scheme and with regards to AVC’s, that this would be a private arrangement between me and an AVC provider.

If there were any rough calculations to try and catch up for those 16 years so to speak assuming I entered at 20 and was to retire at 60, for exp, after the 2 year vesting period and provided you could work the minimum 9 Full-Time Equivalent (FTE) years as a member of the Single Scheme as outlined in the circular.

I have used the calculator and I am shocked at how low the pensions now are compared to family etc from pre 2013,1995, as in 3 times less per year.

https://singlepensionscheme.gov.ie/for-members/scheme-information/single-scheme-estimator-tool/

It seems I will have to be purchasing the max allowable referrable amounts to try and catch up, it would be helpful in terms of budgeting of the next few years and to know annual limits either in lump sum or increased contributions and if there was any calculator to try and show what impact they have.

Thank you

Single Public Service Pension Scheme

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