Pensionable remuneration on medical retirement

G

gogogirl

Guest
HI guys,

I have been painstakingly trying to figuire this out all morning but I just dont have the brain power!

If a person retires from Local Government on medical grounds. Is their pensionable remuneration calculated with their salary at time of retirement or is it uprooted based on their salary for the grade had they continued to work?

I would greatly appreciate some clarity on this.

Many thanks
 
The superannuation scheme benefits are calculated on your basic salary at the time of retirement plus your pensionable emoluments based on the best 3 consecutive years in the last 10 years of work. If you retire now, the local govt agency will look at your earnings over the previous 10 years and use the best three consecutive years pensionable emoluments & your final basic salary to calculate your pension & lump sum. With an ill health retirement you may be entitled to added years.

Once the pension is payable it will be indexed to existing employees so if they receive salary increases your pension will increase accordingly.
 
The indexation has been broken and in budget 2011 it was mentioned that a new system will be found to link it to one of the price of living indexes I cant remember which

Public servants took a pay cut on 01/01/2010 that didnt affect pensioners so the link is already broken
 
shigllgetcha said:
The indexation has been broken and in budget 2011 it was mentioned that a new system will be found to link it to one of the price of living indexes I cant remember which

Public servants took a pay cut on 01/01/2010 that didnt affect pensioners so the link is already broken
Click to expand...

Incorrect. Public Servants who retired on their old scales had their pensions cut.
 
Tentman said:
Incorrect. Public Servants who retired on their old scales had their pensions cut.
Click to expand...

I didn't think so. A public sector pension levy was introduced, from 4-6% I think but I think no pro rata pension deduction was applied.

In reality, the new inflation(CPI) linked system would be better because there is not a hope in hades of grade related increases in the foreseeable future. I am not sure that the inflation link would apply yet to imminent retirees under the existing scheme.
 
Tentman said:
Incorrect. Public Servants who retired on their old scales had their pensions cut.
Click to expand...

Anyone that retired before 29/02/2012 had their pension and lump sum calculated on their september 2008/pre cut rates. Anyone that was retired on 01/01/2010 had no change in their pension from the 01/01/2010 pay cut. Their pensions were unchanged from 01/09/2008 to 01/01/2011

They took a PSPR(public service pension reduction) that took a deduction from their gross pensions on 01/01/2011 but their pension is linked to their 01/09/2008 rate with a deduction taken afterwards.

Post 29/02/2012 retirees retired on the cut salaries from 01/01/2010

So there is a two teir system atm. Well maybe two teir is the wrong word, parallel is probably a better word
 
Anyone that that retired after 01/01/2010 had their pensions cut by the same percentage cut that applied to all Public Servants. Only the Lump Sum calculations were preserved to 29/02/2012.
 
shigllgetcha said:
nope you are wrong, they didnt take the cut on their pension, they had the PSPR applied instead on 01/01/2011



http://www.rte.ie/news/2012/0227/publicservice.html
Click to expand...

And what, pray tell, is the PSPR? Its a reduction, plain and simple. Or to most pensioners, a cut. The vast majority of PS pensioners have a pension of less than €60,000.00, where the major reduction comes in. And they applied to anyone who retired after 01/01/2010. And any married PS who retired on a pension of €24000.00 or less , have now had their pension cut to less than the Non-Contributory Pension for a married couple. Crazy or what?

http://per.gov.ie/wp-content/upload...-Measures-in-the-Public-Interest-Act-2010.pdf
 
It is a cut ill agree but I was only pointing out that this statement was wrong;

Tentman said:
Anyone that that retired after 01/01/2010 had their pensions cut by the same percentage cut that applied to all Public Servants. Only the Lump Sum calculations were preserved to 29/02/2012.
Click to expand...

They didnt, it wasnt cut until 01/01/2011 by the PSPR and it was alot less than the paycut-they werent the same percentage

Tentman said:
And they applied to anyone who retired after 01/01/2010..
Click to expand...

It applied to anyone that retired before 29/02/2012

Tentman said:
And any married PS who retired on a pension of €24000.00 or less , have now had their pension cut to less than the Non-Contributory Pension for a married couple. Crazy or what?
Click to expand...

Anyone with a pension of €24,000 was cut by €720

*Im not trying to be argumentative just correcting a few things
 
shigllgetcha said:
It is a cut ill agree but I was only pointing out that this statement was wrong;



They didnt, it wasnt cut until 01/01/2011 by the PSPR and it was alot less than the paycut-they werent the same percentage



It applied to anyone that retired before 29/02/2012



Anyone with a pension of €24,000 was cut by €720

*Im not trying to be argumentative just correcting a few things
Click to expand...

Thanks for the clarifications. Just to say that anyone who retired under the Incentivised Early Retirement also had their pension reduced by the PSPR. Then they were further cut by by having USC applied. So the €24,000 pensioner I mentioned had the guts of a further €900 in addition to the €720 you mentioned deducted. That would reduce their take home pay to around €22500, assuming they pay very little tax. Max non-con pension for a couple is €22780 approx. My pensioner will not qualify for any of the Household Benefits as he is not in receipt of a qualifying payment . He may qualify when he is over 70.

I'm noy trying to be argumentative, either. I'm just trying to point out that Public Service pensioners who retired on medium salaries, are, apart from the Lump Sum, not very much better off than someone who sat on their rear end, content to be subsidised by the by us taxpayers:(
 
I work in ye HSE and have been trying for early retirement on I'll health grounds for two years. Finally got occupational Health Doc to agree last month.
Does anyone know the following.
What is next step?
How long will it take?
How many years service are they likely to add on?
Am I better waiting for talked about..no action yet... Proposed voluntary redundancy for HSE staff. I assume I will qualify as I have out on illness for two years and no replacement for my Job.

Thanks
 
If occupational health have deemed that you should go on PI you cant change your mind, its not your decision anymore, you cant deicde not to go and wait for the next scheme. Thats assuming what you say means they have signed you off. Has the occupational health consultant written to confirm that you should be allowed to retire on PI?

The added years varies, what age are you and what service do you have?

Edit: i see on the other thread you are 54 and have 12 years, you can only get your potential service to age 60 to a max of 6.666, so 5 and a bit years
 
Thanks for your help. All I have to date is word from the OCH doctor but I wil call him on Monday to see what is state of play. I assume after that it goes to superann to decide on extra years and amounts of pension etc. I'll keep you informed as to what happens.

Can't wait to be gone. Made a huge mistake in going into management in the HSE as it was all politics and mind your back and nobody in my little world cared too much about the clients..mostly people with mental health issues.
 
shigllgetcha said:
If occupational health have deemed that you should go on PI you cant change your mind, its not your decision anymore, you cant deicde not to go and wait for the next scheme. Thats assuming what you say means they have signed you off. Has the occupational health consultant written to confirm that you should be allowed to retire on PI?

The added years varies, what age are you and what service do you have?

Edit: i see on the other thread you are 54 and have 12 years, you can only get your potential service to age 60 to a max of 6.666, so 5 and a bit years
Click to expand...

Thanks for help. Got numbers today. They added 6.5 years so v happy with that. Major surprise was deduction of 10,000 for widows and orphan contriibutions to age 65. It's 1percent times years to 65. Shocked as I have no eligible children and my spouse is much older and unlikely to ever benefit. Can I avoid this in any way? Seems crazy to pay for something I will never claim. Can I or my spouse t out?claim on.
 
The reason the liability of S&C has to be paid, is that if you were to die before your spouse he would receive a pension based on your potential service at age 65, had you not retired on the ill-health. It is irrelevant what age he is. He cannot opt out.

On the ill-health addition of 6.5 years, did they tell you how that was calculated?
 
Evening said:
The reason the liability of S&C has to be paid, is that if you were to die before your spouse he would receive a pension based on your potential service at age 65, had you not retired on the ill-health. It is irrelevant what age he is. He cannot opt out.

On the ill-health addition of 6.5 years, did they tell you how that was calculated?
Click to expand...

Thanks for info. Only have numbers over phone yet so not sure exactly how amounts made up.
 
You must log in or register to reply here.
Back
Top