Additional Superannuation Contribution

The Additional Superannuation Contribution, commonly referred to as ASC, is a statutory deduction applied to the pensionable income of public sector employees in Ireland. It was implemented on the first of January 2019, replacing the previous Pension Related Deduction introduced during the financial crisis. ASC is governed by the Public Service Pay and Pensions Act 2017 and represents a permanent reform intended to support the long term funding of public service pensions.

The contribution applies only to individuals currently employed in public service roles who are entitled to a pension from the public system. Retired public servants or those receiving public service pensions are not subject to ASC. The deduction is calculated based on specific income thresholds and the type of pension scheme to which the employee belongs. There are separate contribution rates for members of standard accrual schemes, fast accrual schemes and the Single Public Service Pension Scheme.

Additional Super Contributions

Additional super contributions can refer either to mandatory payments under schemes like the ASC or to voluntary top ups made by employees to enhance their retirement benefits. In the context of the Irish public service, the term most often refers to the ASC, which ensures a permanent flow of funding into public pension systems. These contributions are calculated based on pensionable income and are deducted directly from salaries through payroll.

For public servants in standard accrual schemes, from January 2020 onwards, income up to thirty four thousand five hundred euro is exempt. Income between thirty four thousand five hundred and sixty thousand euro is charged at ten percent. Any income above sixty thousand euro is subject to a rate of ten point five percent.

Employees under fast accrual pension schemes, such as those used in uniformed services, have a slightly lower exemption threshold. Income up to twenty eight thousand seven hundred and fifty euro is exempt. The next tier, between twenty eight thousand seven hundred and fifty and sixty thousand euro, is charged at ten percent. Income above sixty thousand euro is also subject to a rate of ten point five percent.

Those in the Single Public Service Pension Scheme are subject to different rates. From 2020 onward, earnings up to thirty four thousand five hundred euro are exempt. Income between thirty four thousand five hundred and sixty thousand euro is charged at three point three three percent. Earnings above sixty thousand euro are charged at three point five percent.

Additional Contribution to Superannuation

This refers to any supplemental amount contributed to a superannuation or pension plan, above and beyond the standard required rate. Within the Irish public service, the ASC is a type of additional contribution that is legally required, not voluntary. However, the concept can also refer to employees opting to contribute extra funds to secure a higher pension or earlier retirement.

These contributions play a crucial role in maintaining the long term viability of defined benefit pension schemes, particularly in the public sector where the state bears the financial responsibility for future pension liabilities. Employees are required to fill out relevant forms when entering or exiting public employment or when seeking refunds, and contribution amounts are recorded and reported through payroll systems.

Additional Super Contributions Tax

This term generally refers to tax implications associated with making extra contributions toward pension benefits. In systems outside of Ireland, such as in Australia, this tax is levied on higher income earners who exceed certain contribution caps. In the Irish context, while the ASC itself is not a tax, it functions similarly in that it is a nonrefundable, compulsory deduction intended to offset the cost of providing generous public sector pension benefits.

The ASC does not reduce tax liability nor is it claimable against income tax. However, Universal Social Charge and Pay Related Social Insurance continue to apply as usual on pensionable income, even after the ASC has been deducted.