There are a number of ways to independently increase your retirement benefits, depending on the scheme you're in.
To do this you may choose to:
- make additional voluntary contributions (AVCs) (all schemes)
- buy notional service (HSE Superannuation Scheme only)
- buy referable amounts (Single Scheme only)
- transfer pension benefits (Single Scheme only)
HSE Superannuation Scheme options
HSE Superannuation Scheme options
Buy back refunded contributions
If you received a pension refund after resigning from the HSE, you can buy back this service when you return.
The cost of buy back is the original amount you received plus compound interest (from the date you received your refund up to the date you buy back).
Buy notional service
If you will not have 40 years of pensionable service at your minimum retirement age, you may be able to buy notional service. This means buying additional pensionable service at full actuarial cost. You may get tax relief on these payments, depending on your personal circumstances.
You may only buy your service shortfall up to 40 years' service at the age of 60 or 65, as applicable.
Note: you do not need to have 40 years' service to retire and claim pension benefits.
About buying notional service:
- costing is based on your basic salary, number of years being purchased, and age at your next birthday
- purchase agreement is made from your next birthday to age 60 or 65, as applicable
- choose to purchase by lump sum payment or deduction from your salary each pay period to age 60 or 65 as applicable
- if you earn pensionable allowances that form part of your pension calculations, you will also owe notional service contributions for these earnings (cost is taken from your retirement lump sum)
Note: you are strongly advised to get independent financial advice before buying additional pension benefits. The HSE pensions department is not permitted to give you financial advice.
Single Scheme options
If you are a member of the Single Scheme, you can boost your pension benefits by:
- making additional contributions from your own funds to buy additional retirement benefits (called 'referable amounts')
- transferring pension benefits from other Revenue-approved pension schemes (check with the trustees of your previous private pension provider to see if they are among the Revenue-approved pension schemes)
If you have preserved pension benefits in other public service pension schemes, you will be able to claim these pension benefits when they become payable. You cannot transfer these benefits into the Single Scheme.
Buying referable amounts
To buy referable amounts, you must have the following at the start of your purchase contract:
- 2 years' pensionable employment in the scheme
- ability to be a scheme member for 9 years, starting from when you first joined the scheme until your normal retirement age
About buying referable amounts:
- limits on the additional benefits that you can buy
- purchase is made by a once-off payment within a 12-month period called the contract period (specified by the HSE)
- you may get tax relief on these payments, depending on your personal circumstances.
- get an estimate for buying additional lump sum and pension benefits using the purchase calculation tool - gov.ie
Note: you are strongly advised to get independent financial advice before buying additional pension benefits. The HSE pensions department is not permitted to give you financial advice.
At a glance purchase of additional benefits - gov.ie (PDF, 133 KB, 1 page)
Transferring pension benefits
If you have pension benefits from Revenue-approved private pension schemes (other than from your public service employment), you may be able to use a transfer value to buy additional Single Scheme benefits.
About transferring pension benefits:
- you must have the capability to have 2 years' pensionable employment in the scheme before reaching your normal retirement age
- you may be entitled to tax relief if you use a transfer value to buy extra benefits, depending on your tax credits (contact Revenue for further information)
- get an estimate for transferring pension benefits using the purchase calculation tool - gov.ie
Note: you are strongly advised to get independent financial advice before buying additional pension benefits by transfer value. The HSE pensions department is not permitted to give you financial advice.
At a glance transfer in of pension benefits - gov.ie (PDF, 130 KB, 1 page)
Additional voluntary contributions
You may be able to make additional voluntary contributions (AVCs) to a Revenue-approved pension product. This enables you to increase your retirement benefits outside of the HSE pension scheme. You may get tax relief on these payments, depending on your personal circumstances.
You can make AVCs if the benefits from your main pension scheme, along with pension benefits from previous employment, are expected to be less than the maximum allowed by Revenue. You will need to check this with Revenue.
An AVC is a private arrangement between you and a financial services company. You are strongly advised to get independent financial advice before buying additional pension benefits. The HSE pensions department is not permitted to give you financial advice. The HSE can facilitate deductions from your salary if your AVC plan is with a HSE-registered AVC provider.