Pension payments while on career break

kalamityjim

I'm heading on a career break but want to continue to pay my pension while I'm gone. Just not sure how much that will cost me. Tried getting onto the Dept. of Ed. but o course trying to get a reply from them is, well, impossible!

There are a few things in the deductions section of my payslip that refer to pensions:
1.5% SP. & CH.- PEN
Pension Related Ded
Pension - Grouped

Does anyone know if I would have to pay all three of those while on career break or if only some of them would apply?
Or could it even be the case that I might be paying more than these three while on career break? - cos I might not be getting tax breaks on some of it etc?

Any info at all would be appreciated. Basically just wondering how much my pension is gonna cost me while away. Thanks.

trihead

hi,

I'm nearly sure you are not allowed do this. I did some research a while back as was thinking about doing the same [ didn't take break in the end] - it might have changed since? Was told you are allowed buy back the years when you come back either in a lump sum for each year [ which can work out crazy money for some] or monthly deduction for the rest of your service - it will depend on your age and service history.

trihead

kalamityjim

ooooh not good news! People have been advising me to keep up pension payments but then again, I don't think any of them were ever in really in this situation so they're probably not aware that it mightn't even be possible!

How would it be that the lump sum would be crazy money? You saying that it just all adds up over time or do you mean that there would be extra charges/taxes on it that would drive up the amount? I suppose if keeping up the pension payments isn't possible, I could just put the money away on a monthly basis and buy it back when I return to Ireland...

kalamityjim

thanks for the reply btw!

spurious

I took a career break a good few years ago now. I was out for 2 years and I paid pension payments for one of them. It was a good old whack of money at the time as I recall - about IR£12000 IIRC.

kalamityjim

Ah lads, I hardly pay that much in pension?!
Did you pay that per month/fortnight while you were away or did you wait and pay it in one lump sum when you got back?

spurious

I paid it in a lump sum.
It was part of the few bob left to me by my granny that allowed me take the career break in the first place. I couldn't afford to pay for the second year.

You don't just pay your pension contribution, you pay the employer's too.
I know it's not cheap.

TheDriver

and don;'t forget that its tax deductable but if your not earning and hence not paying tax, it seems very expensive. Remember you would normally pay 42% of that in tax anyways......