Written answers

Thursday, 12 October 2017

Department of Public Expenditure and Reform

Public Sector Pensions Data

Photo of Seán FlemingSeán Fleming (Laois, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

69. To ask the Minister for Public Expenditure and Reform the position regarding Government employees in a scheme called non-contributory pension scheme for non-established State employees; the level of gratuity available after 20, 25, 30, 35 and 40 years service respectively based on their service and their pension entitlements for each of those years of service (details supplied); and if he will make a statement on the matter. [43204/17]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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For members of the Non-contributory pension scheme for non-established State employees benefits are calculated based on length of service (to a maximum of 40 years’ service) and the individual’s final pensionable remuneration.

Pensionable Remuneration is the aggregate of pensionable salary and pensionable emoluments held on the last day of service.

- Pensionable salary is, generally, the annual salary of a member on the last day of service.

- Pensionable emoluments (benefits in cash or in kind which are additional to basic salary) are the average annual amount of an officer’s actual emoluments received and deemed to be pensionable, during the 3 years’ of reckonable service immediately preceding the officer’s last day of service.  For variable emoluments (i.e. those emoluments based on salary rate) a look back on the best 3 consecutive years of emoluments (uprated/down-rated to take account of changes in salary) in the last 10 years’ preceding retirement is permitted.

Pension Benefits comprise 2 elements:  the pension lump sum (gratuity) and the annual pension as follows:

  1. Lump sum benefits accrue at the rate of 3/80thsof pensionable remuneration for each year of reckonable service (up to 40 years’ service).
  2. Pension benefits accrue at the rate of:
    1. 1/200thof final pensionable remuneration for any pensionable remuneration below 31/3rdtimes the State Pension Contributory (SPC) multiplied by the total number of years’ reckonable service,
    2. plus
    3. (where applicable) 1/80thof any final pensionable remuneration in excess of 31/3rdtimes the SPC payable to a single person with no dependants multiplied by the total number of years’ reckonable service.
Note 1:  A multiplier of 3.333333 (i.e. to 6 decimal places) is used to calculate 31/3rdtimes

Note 2: The SPC rate is the maximum State Pension Contributory payable by the Department of Employment and Social Protection to a single person without dependants on the last day of the employee’s pensionable service.

Salary in excess of 31/3rd(SPC)  

A person who retires on final pensionable remuneration of €45,000 with 40 years’ service and where the annual SPC at retirement (10th March 2017 rate) is €12,434.49 would have his/her pension calculated as follows:

3.333333(SPC) = €41,448.31

Lump Sum:

3/80thof pensionable remuneration * years’ of service

1/80th(€45,000) * 3 * 40 = €67,500

Annual Pension

1/200thof pensionable remuneration up to €41,448.31 * 40 years

= €41,448.31/200 * 40 = €8,289.66

Plus

1/80thof pensionable remuneration in excess of €41,448.31 * 40 years =

€45,000 = €41,448.31 = €3,551.69

€3,551.69 /80 * 40 = €1,775.85

Total = €10,0065.51

Salary less than 31/3rd(SPC)  

A person who retires on final pensionable remuneration of €35,000 with 40 years’ service and where the annual SPC at retirement (10th March 2017 rate) is €12,434.49 would have his/her pension calculated as follows:

3.333333(SPC) = €41,448.31

In this case Pensionable Remuneration does not exceed 3.333333(SPC)

Lump Sum:

3/80thof pensionable remuneration * years’ of service

1/80th(€35,000) * 3 * 40 = €52,500

Annual Pension

1/200thof pensionable remuneration up to €41,448.31 * 40 years =

€35,000/200 * 40 = €7,000

Plus

1/80thof pensionable remuneration in excess of €41,448.31 * 40 years =

€0 /80 * 40 = €0

Total = €7,000

Salary: €45,000 Lump SumAnnual Pension
40 years€67,500.00 €10,065.51
35 years€59,062.50 €8,807.32
30 years€50,625.00 €7,549.13
25 years€42,187.50 €6,290.94
20 years€33,750.00 € 5,032.75

Salary: €35,000 Lump SumAnnual Pension
40 years€52,500.00 €7,000.00
35 years€45,937.50 €6,125.00
30 years€39,375.00 €5,250.00
25 years€32,812.50 €4,375.00
20 years€26,250.00 €3,500.00

A non-established State employee may also have an entitlement to a State Pension Contributory (SPC) subject to the individual meeting the requirements as laid down by the Department of Employment Affairs and Social Protection.  The SPC is payable on reaching state pension age which is currently age 66.  Note the state pension age will rise to 67 in 2021 and 68 in 2028. 

Where a person is not entitled to the SPC or is entitled to less than the full SPC a supplementary pension may be payable subject to certain conditions.  The supplementary pension will seek to make up the difference between the amount of the occupational pension to which they are entitled and the amount they would have received if their occupational pension was not integrated with the Social Welfare system. 

Individuals can request an estimate of their pension entitlements from their Local HR/PeoplePoint.  Further guidance with respect of pension and lump sum entitlements can be found in in the Superannuation Handbook and Guidance Notes: Non-established State Employees Scheme found on the civil service pension website at the following link:

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