Calculating pension benefits for integrated PS pension

P

Protocol

Registered User
Messages
4,299
A public servant has asked me to estimate their possible work pension.

They joined the PS after 1995.

I am using the formula:

work pension = (years service) * (final salary) * (1/200)

This applies to wages under approx 40k.

So for somebody on 25k with 10 years service, I am getting:

(10)(25,000)(1/200) = 1250 pension per annum.

This is low, as expected, due to short service, and due to the State Pension making up most of the integrated total pension benefits.

Does this calculation look ok?

I realise there is a tax-free lump-sum as well.
 
That looks right to me. Public servants on less than 40K actually get higher than 50% of their salary as pensions - presumably so they actually get some sort of pension on top of the state pension. For example, someone on 20K with 40 years service would only get 10K (including state pension) if it was a strict '50% of salary' pension - but the state pension is c. 12K... The 200ths method used above gives higher than 50% to those earning less than 40K - so someone on 20K gets the state pension of 12K plus 4K on the 200ths basis for a total of 16K (80% of salary). Someone on 25K would get the 12K state pension plus 5K on the 200ths basis (25K / 200 * 40) for a total of 17K (68% of salary). As your example person only has 10 years of service instead of 40, they will get 25% of the full 5K - so, as you have calculated, €1,250.
 
That's a separate issue/calculation. The public service pension will be €1,250 regardless of state pension entitlement.
 
Protocol said:
A public servant has asked me to estimate their possible work pension.

They joined the PS after 1995.

I am using the formula:

work pension = (years service) * (final salary) * (1/200)

This applies to wages under approx 40k.

So for somebody on 25k with 10 years service, I am getting:

(10)(25,000)(1/200) = 1250 pension per annum.

This is low, as expected, due to short service, and due to the State Pension making up most of the integrated total pension benefits.

Does this calculation look ok?

I realise there is a tax-free lump-sum as well.
Click to expand...

I think the calculation of Final Salary for pension purposes is more complex that final salary. see here...http://www.cspensions.gov.ie/SuperannuationHandbookandGuidanceDec20061.pdf
 
You must log in or register to reply here.
Back
Top