Contribution rate on public service integrated pension?

P

Protocol

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Public sector workers employed pre-1995 typically pay 6.5% of salary in pension contribution. They pay low-rate PRSI and don't get a PRSI pension.

After 1995, new employees do pay full PRSI, and will get an integrated PRSI+ occupational pension.

They pay a lower rate of contribution to the occupational pension.

What I want to know is what is the lower rate they pay to their employer's pension??
 
Re: contribution rate on public integrated pension?

Hi Protocol,

Im not being smart here but I dont understand the question.

Do you want to know the reduced superannuation deduction for integrated schemes?

As an aside, what you are referring to are Public Service (and not Public Sector) pension schemes. The distinction is important to avoid confusion.

aj
 
Re: contribution rate on public integrated pension?

Yes, aj, it is a bit complex.

I am referrring to public service (teaching, nursing, etc.).

Yes, I do want to know how the reduced rate of superannuation contribution is calculated for integrated schemes.

Thanks.
 
Re: contribution rate on public integrated pension?

Thanks very much for that, aj. So they pay the same %contribution, but just on a different amount of salary.
 
the higher salary makes up for the difference between paying the two different classes of PRSI. My understanding is that a pre 95 and post 95 public servant with the exact same tax credits would end up receiving the same net salary.
 
I have looked at the cs pension information site and have stripped out reference to pre 1995 and to pension benefits. I cut and pasted material relating to pension contributions only. See below. (I am not a public servant so this is only my interpretaion of the contribution rates)

What contribution rates do 'established civil servants on or after 6 April 1995' have?



Persons appointed as established civil servants on or after 6 April 1995 are in Class A PRSI and their pensions are co-ordinated or integrated with the State Social Insurance system.

The purpose of integration is to take account of the entitlement to Social Insurance benefits in making up a portion of replacement income at retirement. Integration applies to both pension (lump sum is unaffected) and contributions.

Net remuneration is defined as current salary plus pensionable emoluments, less twice the maximum rate of Social Insurance contributory old age pension payable to a single person with no dependants.

Contributions
An explicit main scheme contribution of 5% applies.

The 5% contribution comprises
3½% of net remuneration in respect of pension and
1½% of remuneration in respect of lump sum

in addition,

1½% of remuneration for the spouses' and children's contributory pension scheme.
 
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