Pensions at DCU

DCU Pensions - Approaching retirement

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Approaching retirement

Pre-retirement and mid-career Seminar

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.

Forms for completion Prior to Retirement

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). Please note that, in general, there are no implications for anyone earning less than 200K per annum and who have no further additional/independent benefits in addition to their public service benefits. 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…

PRD12 Form: All members of Public Service Pension Schemes pay a Pension Levy known as the Pension Related Deduction (PRD). If you are retiring mid-year, you may be eligible for a refund. By completing and returning the attached PRD12 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.

Taxation on pension lump sum

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.

Public sector Pension Reduction (PSPR)

PSPR is a cut in public service pensions whose pre-PSPR value exceeds the applicable exemption thresholds. PSPR is designed in a progressive manner with proportionately larger reductions imposed on relatively higher value pensions. PSPR came into effect on 1 January 2011 as part of the Government’s programme of financial emergency measures to urgently address the serious position of the public finances.

Supplementary Pension

As you may be aware, 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 qualifying age will rise to 67 in 2021 and 68 in 2028.

Retired member's Group Life Income Continuance Plan

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.

Annual Leave on retirement

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.

Professional Added Years

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 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