Pensions | Retiring from DCU - Approaching Retirement
Retirement Planning Council of Ireland (RPC) Seminar
Learn about retirement planning at Retirement Planning Council of Ireland (RPC) seminar
If you would like to attend 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 will book your course place and include your spouse or partner too if they would like to go along.
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.
Following the Financial Emergency in the Public Interest Act 2011, lump sums that exceed €200,000 will be liable to taxation. Any amount above €200,000 will be subject to tax of 20%.
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.
Occupational Supplementary Pension (only applicable to A rate PRSI contributors)
At retirement you will receive an occupational pension from DCU. In addition to your occupational pension, and if eligible, receive the State Pension Contributory (SPC) 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 general, in cases where an individual does not qualify for the State Pension Contributory (SPC) on retirement, or where the individual qualifies for the SPC, or another social insurance benefit, at less than the full rate of SPC, Pre-existing Public Service Pension Schemes make provision for an award of an ‘Occupational Supplementary Pension’ (OSP), subject to meeting the relevant eligibility criteria. This ensures that a Fully Insured member of the scheme receives an overall pension package (including Occupational Pension, Relevant Benefits, and OSP) equivalent to the pension which would have been payable if the Occupational Pension had not been integrated.
Circular 12/2024 Arrangements for Occupational Supplementary Pensions (OSP) is effective from 1st August 2024.The main aim of the circular is to remove the compulsory necessity for retired members of pre-existing schemes to engage with the Department of Social Protection (DSP) and exhaust all social insurance entitlements, including jobseekers benefit, before becoming eligible to apply for payment of an Occupational Supplementary Pension (OSP).
Eligibility Criteria for Applicants Applying for an Occupational Supplementary Pension (OSP):
- Must be retired and have reached minimum retirement age or retired on ill-health grounds.
- Member of pre-existing pension scheme, on an integrated basis (A rate).
- Must not be in full-time employment or self employed. Can work part-time. In such cases the amount of OSP payable will be on a pro-rata basis, e.g. An individual works one (1) day a week in a normal five (5) day working week. They will be deemed to be working 20% of the normal working week and would have the OSP payable reduced by 20%.
- Pension payable must be less that pension that would have been payable had the pension not been integrated.
- If applicant is below State Pension Age (Age 66), must not have claimed a Social Protection benefit or if they have it is less than the max State Pension Contributory value.
- Failure to qualify for a Social Protection benefit must be outside of their control (see circular for examples of in/out of control).
If you wish to make an application for an Occupational Supplementary Pension (payment of OSP is not made automatically) please advise your Pensions Officer who will provide the necessary declaration to complete. Further information is available in Circular 12/2024.
If you are in receipt of an OSP you will be required to complete an annual declaration confirming your eligibility for continuation of payment.
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.
It is preferable that all annual leave due is taken prior to retirement, if possible. If you do have annual leave remaining your Line Manager will confirm balance due for payment.
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.
As outlined in the previous section, you may have to pay tax if the total capital value of pension benefits exceeds €2M. You will be required to complete the Standard Fund Threshold Declaration Form.
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.