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