Public Sector Pensions

Are you aware that there are now 3 different formulae used to calculate Public Sector retirement benefits? Which calculation is used depends on when you started in the public service and if you have had a break in service of more than 26 consecutive weeks.
Cost neutral early retirement may also apply to you, if you are retiring before your ‘normal retirement age’, even if you have your 40 years service completed! Early retirement can come at a cost.

There are ways to increase your pension or help make early retirement a possibility. These are:

  • Notional Service Purchase – purchasing pension benefits from your employer for years service that you will be short of, at your Normal Retirement Age, to achieve your full pension
  • PCW – purchasing pension benefits from your employer for years that you were working in the public service, but not paying into the pension
  • AVCs – Your own Additional Voluntary Contributions, to increase your income in retirement
  • Last minute AVCs – a lump sum AVC to increase your tax free cash at retirement
coffee cup on the side of the glass table
There are Pros and Cons to each of these, as well as different costs, that you need to understand before entering deciding which route you should choose. Public Sector entitlements are confusing and complex.

For assistance with your Public Service Pension please give Georgina a call today on 053 91 46592

Georgina Roche

053 9146592

Georgina Roche is one of our Financial Advisors and she has spent a number of years immersed in Public Sector benefits and can help you understand your benefits, when you can retire and give you assistance on deciding which option is best for you, if you wish to increase your retirement benefits
Georgina Roche - Neiland Financial Services