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Your contributions will cease once you stop receiving your salary. During your career break your AVC fund will remain invested in your chosen fund. When you return to work you can start your contributions again, however you may need to increase these contributions to compensate for any shortfall suffered as a result of years of service missed.
Legislation restricts the maximum pension fund you may have on retirement. It also restricts the amount of tax-free cash you may take. The limits apply to the aggregate of all your pension plans. These limits (which may change each year) are €5,418,085 and €200,000 for your tax free cash lump sum. If, when you retire, your benefits exceed these limits, the excess amounts may be subject to tax.
In addition to or instead of contributing to an AVC Plan you may have the option of buying back missing years of service through the Notional Service Purchase Scheme (NSP). In general under the NSP scheme you will get an extra 1/80th of pension and an extra 3/80ths of gratuity for each year you buy back. Both schemes have their merits and you want to find out more specific information regarding buying back extra years of service, you should consult with your own HR/Personnel Section.
Both schemes have their merits and if you want to find out more specific information regarding buying back extra years of service, you should consult with your own HR/Personnel Section.
Your Irish Pensions and Finance consultant can advise you regarding investing in an AVC Plan.
Whilst this website provides you with relevant general detail reference the AVC scheme you really need to review your personal circumstances with one of our financial advisors to enable you to assess if an AVC is the right option for you.
To arrange a confidential, one-to-one consultation with one of our pensions advisors contact us on
01 829500. |
