Drawing down your AVC/ Public Sector PRSA
At last, it’s time to look forward to enjoying your retirement. As an AVC/Public Sector PRSA holder, the money you’ve built up over the years helps mark the beginning of a more financially secure retirement.
There are a number of steps you need to take before you can draw down your AVC Investment Account/Public Sector PRSA.
When drawing down your AVC/Public Sector PRSA we can:
- Guide you through the steps involved in drawing down your AVC Investment Account/Public Sector PRSA
- Prevent any unnecessary delays
- Ensure that you take advantage of any tax incentives due to you
- Explain the documentation that will be needed in order to process your AVC/Public Sector PRSA from both you and your employer.
A recurring question that we are asked from Public Sector employees is what documentation they will need to gather in order to draw down their AVC/Public Sector PRSA – so we have compiled a handy list of what is required.
Please note: It is important to send us all of the details requested especially if your salary has decreased/fluctuated over the last few years as it may be possible to use a previous higher salary in the calculations of your retirement options which could increase the tax free amount you can take from your AVC.
To book your complimentary appointment with one of our Retirement Planning Consultants,
(01) 408 4058
Documents required to process your AVC/Public Sector PRSA
The following identification is required in all cases:
(A) A certified photocopy of a current Passport or a Drivers Licence
(must be certified by a Cornmarket Consultant, Solicitor or member of An Garda Síochána).
(B) Original Birth Certificate (to confirm age at retirement)
Original Marriage Certificate (for female members who changed their name upon marriage – in order to confirm identity with the Birth Certificate).
(C) Superannuation details (required in all cases)
Retirement details from your employer which must include the following and which are normally provided to you after your date of retirement:
- Date of retirement
- Type of retirement
- Exact service completed (giving details of additional service, if any)
- Pensionable salary
- Gratuity and Pension under the Superannuation Scheme
- Deductions, if any, from your Gratuity
- Cost Neutral Form/details (if applicable)
Other Required Pension, Service or Salary Details
(Required in some cases to maximise the tax-free cash you can take from your AVC).
(A) Details from your employer of the following:
- All pensionable/non-pensionable salary under Schedule E earnings for the 10 years prior to your retirement. This may be relevant to you due to pay cuts since 2010 and/or if you have a salary that fluctuates. We have designed a form for your employer to complete and is available below.
- Total years of service if service is greater than 40 years
- Any non-superannuated years of service.
To help you gather this information, please ask your employer to fill in whichever form is applicable to you below.
(B) Details of any pension, retirement, tax-free lump sum and/or salary benefits from other employment
e.g. State Pension, Personal Pension, Pension from Overseas Service, Redundancy etc.
Please bear in mind that it is important that you send in all documents and details relating to your AVC together, as once your AVC has been paid out it cannot be rewound based on details sent in at a later date.
Once you have gathered all information required please return to Cornmarket using the FREEPOST ADDRESS below:
Cornmarket Group Financial Services Ltd.
To view a quick step-by-step guide about your AVC/ Public Sector PRSA Settlement process, click here
Last Minute AVC
As you are nearing retirement and your gratuity under the Superannuation Scheme is likely to be less than the maximum allowed under Revenue rules because you:
- Have received a reduction in salary over the last few years, even if you have full service and/or
- Are short service and/or
- Have non-pensionable earnings
there is a special tax break under Revenue rules that you might be able to take advantage of before you retire. This is known as a Last Minute AVC.
What is a Last Minute AVC?
A Last Minute AVC is an excellent way of funding any shortfall between the tax-free cash lump sum provided for within the Superannuation Scheme and the maximum Revenue approved tax-free cash entitlement.
The benefits of investing in a Last Minute AVC include:
- Receiving a refund of tax on pension contributions
- Maximising your tax-free cash lump sum at retirement.
How does it work?
A single investment in an AVC is made prior to retirement. Following retirement, you get back your initial investment, less charges; and you also receive a tax rebate direct from Revenue. It is your own responsibility to claim the rebate from Revenue. The tax reliefs available are those currently applying, and the value of these tax reliefs apply directly to you. Because this is a short-term investment, it will not provide an investment return.
N.B. You can’t do a Last Minute AVC after retirement, so please ensure you get in touch in advance of your retirement date.
For more information on how a Last Minute AVC works, please click here.
To see if you are eligible for a Last Minute AVC,