Withdrawing from a Public Service Pension ?

[Palantir_Use]

I have a little over 4 years contributions (52 months) in a Public Service (Defined Benefit) Pension, contributed as a "Post-95" employee.

I was recently reviewing some paperwork, and realised that these pension contributions may not actually provide ANY payout if I leave them where they are ...

The Full penion (40 years contributions) should provide a 50% pension + a lump sum.
I would have one tenth of that - so a 5% pension ... but since the PRSI pension would exceed this value, i'm not sure it makes sense to leave the money in the Public Service pension.

Am I mistaken, or should I contact the Trustee's and arrange for it to be transferred as an AVC into my current employer's fund (or a standalone AVC)?

Cormac

 

[Protocol]

First of all, your former contributions are not in any fund to be transferred.

The formula for benefits is as follows:

(years contributions)*(1/80)*(final salary - 2*OACP)


So, the issue that determines whether you will get a pension from your former employer is not the months paid in, but your gross salary in that job (or any future public sector job).

 

[Protocol]

By the way, if you have moved from a public sector job, to another one, you can transfer the years service into the new pension scheme.

 

[ajapale]

The formula for benefits is as follows:

(years contributions)*(1/80)*(final salary - 2*OACP)

Hi Protocol,

Are you sure that the fourmua for benefits is based on twice the COAP being deducted? I think that it is just the COAP that is deducted. Perhaps you are thinking about the formula used to calculate the employee deduction?

aj

 

[Protocol]

[broken link removed]

See page 8 of the above file.

Yes, the formula for benefits uses an offset of 2*COAP.