Summary
Q I am a public servant. To get a full pension on retirement I need to have 40 years' service but I will only have 35. I have the option of buying an extra five years' entitlement for about EUR 3,600. In light of recently announced changes in the retirement age, possible budget changes in tax relief on pension contributions and any changes to public-sector pensions, would I be better to buy back the service now instead of closer to my retirement? Secondly, would I be entitled to tax relief on the cost and how can I claim it? A We can only guess at what may happen to pension entitlements and tax reliefs in the future, but you need to take account of the following.
I assume that the EUR 3,600 you quote is the annual cost that you will bear each year from now until retirement to get the benefit of an extra five years' service in calculating your pension. The extra five years will give you an extra pension of five eightieths of your final pay, or 6.25%. If you are on EUR 60,000 when you retire, that would be worth an extra EUR 3,750 a year, and if current pension arrangements continue to apply that would be adjusted upwards post- retirement in line with public-sector pay.See the full content of this document
Extract
Q I Am a Public [...] [Eire Region]
The later you leave it to start making those extra pension contributions, the mo...
See the full content of this document
Sponsored links
