DCU Pensions - Approaching retirement

You are invited to attend a pre-retirement seminar or a mid-career seminar run by the Retirement Planning Council of Ireland (RPC). If you are interested in attending, please visit the RPC website and let the Pension team know what course dates suit. We would be happy to organise this on your behalf. Your spouse/partner is also invited to attend.

Bank Form: An updated signed form is required. However, if your bank details remain unchanged to those held by DCU Payroll, you simply need to indicate that the details are 'as before', complete page 2 and sign and return the form to the Pension team.

Standard Fund Threshold (SFT) Pension Declaration Form: The Standard Fund Threshold (SFT) is a limit on the total capital value of pension benefits that an individual can draw from tax-relieved pension arrangements, which came into payment for the first time after 7th December 2005. While not exhaustive, benefits are taken to include those from defined benefit occupational pension schemes, defined contribution occupational pension schemes, retirement annuity contracts (RACs), personal retirement saving accounts (PRSAs) and additional voluntary contributions (AVCs). If the capital value of pension benefits exceeds €2M, the excess on the €2M limit is subject to tax at 40%. Further information available at http://www.pensionsauthority.ie/en/LifeCycle/Tax/Lifetime_limit_on_pens…

ASC 12 Form: All members of Public Service Pension Schemes pay a Pension Levy known as the Additional Superannuation Contribution (ASC). If you are retiring mid-year, you may be eligible for a refund. By completing and returning the ASC 12 form, Payroll can assess your eligibility in this regard.

Pension Declaration Form: Under the Pensions Act 2012, a limit of 40 year's pensionable service across multiple public service pension schemes was introduced. In addition, all retiring staff are obliged to make declarations of entitlement to retirement benefits including preserved retirement benefits from any other Public Service Pension Scheme. This form be completed and returned to the Pension team.

Standard Fund Threshold

The Standard Fund Threshold (SFT) is a limit on the total capital value of pension benefits that an individual can draw from tax-relieved pension arrangements, which came into payment for the first time after 7th December 2005. While not exhaustive, benefits are taken to include those from defined benefit occupational pension schemes, defined contribution occupational pension schemes, retirement annuity contracts (RACs), personal retirement saving accounts (PRSAs) and additional voluntary contributions (AVCs). If the capital value of pension benefits exceeds €2M, the excess on the €2M limit is subject to tax at 40%.  In general, this potentially will only affect members whose annual pension exceeds €60K or more per annum.  However, other qualifying retained benefits, benefit crystallisations or longevity of public service may affect this. Please refer to Standard Fund Threshold Circular for further information.

Taxation on Lump Sum/Gratuity Exceeding a Lifetime Limit of €200,000

Pensions are subject to income tax in the normal way. Lump sums that exceed €200,000 will be liable to taxation. Lump sums between €200,001 and €500,000 are taxed at 20%, with any balance over this amount taxed at your marginal rate and subject to the Universal Social Charge.

As you may be aware, if you pay class A PRSI, your retirement benefits are coordinated with the State. This means that you will receive a pension from DCU and, if eligible, the State Pension Contributory or part thereof. Your DCU pension and tax-free lump sum is paid to you upon retirement. The State Pension Contributory becomes payable at age 66*.

In order to make up the shortfall in pension for the period between date of retirement and the age of eligibility for State Pension (Contributory) where the non-payment of Social Welfare Benefits is through no fault of the retiree, a Supplementary Pension may become payable from DCU. If you are eligible for payment then this will continue to be paid to you, provided you remain eligible, until the State Pension is payable at age 66. Written confirmation that the retiring staff member is not employed elsewhere together with written confirmation from the Dept. of Social Protection confirming that they are not in receipt of social welfare benefits is required before the Supplementary Pension can be paid.

Visit the Dept. of Employment and Social Protection's website to access further information on social welfare benefits.

* The State Pension age is remaining at 66 pending a review.

If you have been a member of the DCU Income Continuance Plan, your contribution to the Plan included a payment towards a Death Benefit should you die whilst in employment. This Death Benefit under the DCU Income Continuance Plan and Pension Scheme will end when you retire. Due to your membership of the Death Benefit element of the DCU ICP, you will automatically be included in the Retired members’ Life Cover Plan, upon retirement, without having to undergo any medical underwriting. You will receive correspondence from Cornmarket, who administer the Plan on DCU's behalf, following your retirement and you will be given the option to opt-out of the Plan if you so wish.

It is preferable that all annual leave due is taken prior to retirement, if possible. If you do have annual leave remaining could you let the pension team know your outstanding balance, in due course, so that we can arrange payment due.

Employees may be eligible to an award under the Professional Added Years Scheme where the criteria for appointment were of such a nature as to preclude the employee from acquiring full superannuation entitlements by maximum retirement age. Because of the nature of the scheme, an award of added years can only be formally made at the time of retirement.

For staff who were employed prior to 1st January 2005, the following schemes apply:

DCU Superannuation (amendment) Scheme 1996 and/or the Revised Scheme for Professional Added Years 2004.

For all new entrants on or after 1st January 2005, the following scheme applies: Professional Added Years Scheme 2005

Professional Added Years - Application Process & Procedure: If you have made a decision to retire, you should apply to pensions@dcu.ie so that an assessment of your eligibility to professional added years be carried out.

Full details can be viewed at Application Process for Professional Added Years and Stages of the Application Process