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Pensions | Retiring from DCU - Approaching Retirement
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Retirement Planning Council of Ireland (RPC) Seminar
Learn about retirement planning at Retirement Planning Council of Ireland (RPC) seminar
If you’d like to attend a mid-career or pre-retirement seminar run by the Retirement Planning Council of Ireland (RPC), check upcoming dates on the RPC website and let the Pension team at DCU People know which dates suit you.
We’ll book your course place and include your spouse or partner too if they would like to go along.
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.
If you have been a member of the DCU Income Continuance Plan (ICP), your contribution to the plan included a payment towards a death benefit that would be paid if you died while in employment. This death benefit ends 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 when you retire, without having to undergo any medical underwriting. Cornmarket (Plan Administrators) will be in touch with you after retirement with the option to continue or leave the plan.
Please take all annual leave due before you retire if you can. If you have annual leave remaining, please let the pension team know your outstanding balance so we can arrange payment due.
You may be eligible for an award under the Professional Added Years Scheme if you’re not eligible for a full pension by the latest date you can retire. This award can only be made formally when you retire.
If you were employed before1 January 2005, the following schemes apply:
and/or
If you joined on or after 1 January 2005, the relevant scheme is the Professional Added Years Scheme 2005
If you’ve decided to retire, apply to pensions@dcu.ie so we can assess if you’re eligible for an award of professional added years.