Part 4 of the Public Service Pay and Pensions Act 2017 provides for the Additional Superannuation Contribution (ASC). Here are some other important points of information you need to be aware of: - ASC applies only to members of public service pension schemes or those receiving pension payments in lieu
- ASC only applies to pensionable payments, so non-pensionable allowances and non-pensionable overtime won't be subject to ASC
- ASC applies to all pensionable payments whether taxable or otherwise. Thus non-taxable pensionable allowances and emoluments become liable for ASC
- ASC varies by pension scheme and terms, with different rates and threshold bands. Therefore, you must correctly identify an individual in the system with respect to their relevant pension scheme membership and terms.
- Week 53 scenario - payrolls with an extra pay week (week 53/fortnight 27), in that week apply an extra set of thresholds. Add that set of thresholds on a "Week 1" basis, not cumulatively.
- ASC is chargeable on all pensionable payments across multiple pension scheme employers and based on the combined pensionable payments in such employment. The procedure for calculating main and subsidiary employment will pertain in respect of ASC as pertained in respect of PRD
- There's employer PRSI relief in respect of ASC. However, ASC doesn't qualify for employee PRSI relief
- ASC qualifies for tax relief, but not Universal Social Charge (USC) relief
- Exclude ASC when calculating age-related tax relief thresholds
ASC rates and annual earning thresholdsFor a full breakdown of the ASC rates and thresholds, use the Additional Superannuation Contribution (ASC) rates and annual earning thresholds article. |