Pensions | Retiring from DCU - Approaching Retirement

We’ll need an updated signed form with your bank details. If those details are those already held by DCU Payroll:

• note the details are 'as before'
• complete page 2 
• sign and return the form to the Pension team.

The Standard Fund Threshold (SFT) is a limit on the total capital value of pension benefits someone can draw from tax-relieved pension arrangements that came into payment for the first time after 7 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) 
• additional voluntary contributions (AVCs). 

If the capital value of pension benefits exceeds €2m, the excess above that is subject to tax at 40%. Please note this potentially will only affect members whose annual pension exceeds €60,000 or more. Other qualifying retained benefits, benefit crystallisations or the duration  of your public service may affect this. Find out more about the SFT.

All members of public service pension schemes pay a pension levy known as the additional superannuation contribution (ASC). If you're retiring mid-year, you may be eligible for an ASC refund. If you complete and return the ASC 12 form, Payroll can assess if you’re eligible for this refund.

The Pensions Act 2012 introduced a limit of 40 year's pensionable service across multiple public service pension schemes. All retiring staff are also obliged to make declarations of entitlement to retirement benefits including preserved retirement benefits from any other public service pension scheme. Make sure you complete this form and return it to the Pension team.

As outlined in the previous section (Forms to complete before you retire), you may have to pay tax if the total capital value of your pension benefits is over €2m. This is due to the SFT.  

If you pay class A PRSI, your retirement benefits are coordinated with the State. This means you get a pension from DCU and, if you’re eligible, you also get a full or part State Pension Contributory payment. 

Your DCU pension and tax-free lump sum is paid to you when you retire and the State Pension Contributory once you turn 66*. (This state pension age is pending review as of 2024.)

To make up the pension shortfall from the date you retire to the date you become eligible for State Pension (Contributory) – where the non-payment of social welfare benefits is not your fault – you may get a supplementary pension from DCU. 

If you're eligible for this, you’ll get it until you turn 66 and become eligible for the State pension. To unlock this supplementary pension, you’ll need to give DCU written confirmation that you’re not employed elsewhere after you retire from DCU, together with written confirmation from the Department of Social Protection confirming you’re not getting any social welfare benefits.