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.
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.
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
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.)
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.
Yes, you may increase or decrease, stop or re-start your AVC contributions over the years ahead. This is of course subject to the maximum contribution limit set by Revenue and the minimum AVC contribution level of €50 per month (or equivalent). Please note, any change made may take up to two months to take effect from your salary.
In general, if you stop contributing to your AVC Plan, your AVC Investment Account will remain invested until you retire. At that point, it is available to you to ‘buy’ the retirement benefits for which you are eligible. If you stop your contributions it may take up to two months to take effect from your salary
Warning:: The value of your investment may go down as well as up.
Warning:: This product may be affected by changes in currency exchange rates.
Warning:: If you invest in this product you may lose some or all of the money you invest.
Warning:: If you invest in this product you will not have any access to your money until you receive your Superannuation Benefits.