Reckonability of Career Breaks

Career breaks are not reckonable for pension purposes as they are periods of unpaid leave.  However, if a staff member has at least 9 years by compulsory retirement age, they can purchase their career break in accordance with the limits the notional service scheme  There are two ways in which a career break can be reckoned:

(1)    When you return from career break:
You can opt to purchase your career break by purchasing notional service for the same period of service (or less) if you wish.  The contribution due may be made either by lump sum payment where you decide to purchase at least one year, or by periodic contributions from salary.  An option to purchase by lump sum must be made within 6 months of returning to duty.  The cost of the lump sum payment will be based on the salary at the date on the option is made and the rate will be calculated on the age next birthday in accordance with the notional service tables.

(2)    Paying additional contributions while on career break:
The contribution will be based on the rate of salary on the last date of paid service prior to the commencement of the career break and will take account of any changes in salary that may arise during the course of the career break.  The rate of contributions are based on the lump sum purchase rates in accordance with the notional service tables and are determined by the staff member’s age next birthday at the time the quarterly payment due is being calculated.  There are two different rates which are dependant on your date of retirement (i.e. age 60 or 65).  

If you wish to purchase your career break by paying the additional contributions in quarterly instalments, you should notify the pension section prior to taking the career break.  When the fourth instalment is received by City of Dublin ETB, a statement of the total contributions paid will be issued in order to claim any tax relief that may be due from Revenue on the additional contributions.