AVCs/Public Sector PRSA FAQs

Please note a Public Sector PRSA works in the same way as an AVC. For the purpose of these FAQs we have used the term AVCs throughout.

How does my AVC Plan work?

Your AVC provides you with a tax efficient way to build up a sum of money which can be used to buy additional financial benefits for you at retirement.

How does the tax relief work?

Tax relief is applied at source if your contributions are deducted from salary. Your employer deducts your AVC contribution from your gross pay before the application of income tax. In effect this means that only the net amount, i.e. after tax relief, is deducted from your salary

When can I draw down my AVC Investment Account

You can only draw down your AVC benefits when you draw down your Superannuation benefits. (Please note a once-off draw down of a maximum of 30% of your AVC value is currently allowed. This option expires in March 2016.)

What are my AVC options at retirement?

At retirement your AVC Investment Account may be used within certain limits imposed by Revenue to:

• Top up your gratuity with an additional tax-free lump sum and/or
• Take a further taxable lump sum at retirement and/or
• Invest in an Approved Retirement Fund (ARF) or an Approved Minimum Retirement Fund (AMRF) and/or
• Purchase extra Superannuation benefits through your employer such as a refund of a marriage gratuity and/or
• Provide a pension in addition to any pension you may be entitled to under the Superannuation Scheme. As with your pension under the Superannuation Scheme, any AVC pension will be treated as earned income for tax purposes and/or
• Buy benefits under the Notional Service Purchase (NSP) Scheme