Public Sector Pensions
The Public Sector Pension scheme has changed radically in recent years. There are now four different schemes depending on when you joined service.
Recent changes will impact on some more than others but ALL Public Sector employees have been affected to a greater or lesser extent. The main changes are:
- Introduction of integration in 1995
- Breaking of link between pension increases and pay awards to those in retirement
- Introduction of actuarially reduced early retirement benefits
- Minimum retirement age moved to 65
- Maximum retirement age moved to 68
- Contributory State Pension age moved to 67/68
- Reduction in Ill Health payment
- Aligning of Professional Added Years
- Introduction of ‘Career Averaged’ pension benefits
These changes may or may not affect you depending on when you joined service and which scheme you are in. The impact on your benefits may or may not be substantial enough to seriously undermine your quality of life in retirement. This is why we strongly recommend you review your individual case as early as possible, while there is still time for you to take meaningful, manageable action.
To arrange a review of your own pension situation, you can contact us on (01) 8298500, or enter your details here to receive a call from one of our team of Financial Advisors.
Public Sector Group AVC Schemes
Irish Pensions & Finance are currently the administrators of 137 Group AVC Schemes, with over 14,000 Public Sector members.
These schemes are facilitated by various Public Sector bodies, including HSE, Voluntary Hospitals, Local Authorities, Defence Forces and Government Departments.
Benefits of AVCs:
- Deductions taken at source through payroll
- Start saving from as little as €15 per week
- Get tax relief at your highest rate through salary
- Stop, start, suspend contributions at anytime
- Choose from a wide range of funds. Check your investments fund options here
- Draw down your fund at retirement to suit yourself (subject to Revenue Rules and Regulations)
Tax Relief Example*:
- €165 gross contribution to the fund
- €66 tax relief at source (40% tax relief)
- €99 deduction from net pay
- 40% tax relief = + 65% interest
- 20% tax relief = + 25% interest
*These figures are estimates only. Subject to Revenue Rules & Regulations.
It makes sense to plan which way you want to draw down your money before you start saving it!
IPF Retirement Services
Retirement Planning Seminars
IPF run regular Retirement Planning Seminars at various venues around the country throughout the year.
These seminars are free of charge and offer a wide range of speakers.The agenda for these Seminars includes:
|1) Safety in the Home||An Garda Siochana|
|2) How to take care of your health after 60||Doctor|
|3) Financial Planning for Retirement||Financial Advisor|
|4) Making your money work for you in retirement||Investment Specialist|
|5) A Positive Approach to Retirement||Retirement & Life Planning Specialist|
Pre – Retirement Consultations
After your retirement, you will have short / medium and long term needs. It is important that you plan as far ahead as possible for each of these stages.
What a pre-retirement Consultation will cover:
- Factfind of all existing retirement benefits.
- How to maximise tax breaks / minimise tax payable.
- Analysis of your short / medium / long term needs.
- Shaping your pension benefits to meet these needs.
- Assessing your appetite to risk / protecting your funds
As part of our ongoing service to our retired clients and to show our appreciation of the business that you have done with us over the years, we are delighted to introduce the IPF Help Desk, phone number 01 6910312.
You can now ring this designated number any afternoon between 2pm and 4pm during the working week and have your queries and questions dealt with by a Qualified Financial Advisor.
What type of queries will you be able to get help with?
Anything relating to your pension. Typical queries we have been getting to our office are:
- How do I draw-down money from my Approved Retirement Fund/Approved Minimum Retirement Fund?
- How will I be taxed on my drawings?
- Can I switch between pension vehicles eg. from ARMF/Annuity to ARF etc?
- What kind of charges am I paying on my funds?
- Am I invested in the appropriate funds/can I switch to a more/less risky fund?
- What are my options re other savings eg. my gratuity etc.
This service is completely free to our clients and you can ring our offices as often as you wish.
If you would like us to update you on any legislative changes etc. that may affect you, please forward your email address at your convenience to email@example.com.