Calculating public service pension

[Superstitious]

Hi,
My sister in law is thinking about retiring from her job. She has over 30years employment from same public service organisation. Three years ago due to ill health she needed to take a step down. This step down amounted to a substantial reducing in salary. Does anyone know, is her pension calculation done from her salaries in the last two years or what I think the best gross salary over the last 5 years. Clarification would be appreciated.

 

[NoRegretsCoyote]

she needed to take a step down

You'd have to be more specific:-

Did she move down a grade?

Go on reduced hours?

Give up some kind of allowance?

 

[Superstitious]

Yeah she moved from a management position to a front line position.

 

[NoRegretsCoyote]

Yeah she moved from a management position to a front line position.

Am not the expert (there are posters who are) but you will need to give a lot more detail to get useful advice.

 

[Superstitious]

I appreciate what you saying but I don't think so. I just want to know if they calculate your pension for the final two years of your final salary or can you choose two years of your last 5 years. Its the same organisation just different position.
Hopefully there is someone who knows.

 

[Conan]

It depends what part of the Public Service she works in. In the Civil Service for example, Final Pensionable Salary is normally the rate of pay on the day of retirement. However if their salary has changed significantly in the last 3 years, then it is averaged over that period. However that is normally designed to cater for someone who gets promoted close to retirement. The various Pension Booklets don’t specifically cater for your situation. I suggest that she consults her HR or Pensions Dept. They probably have some precedent to go on.

 

[johnfenit]

best approach, go to her HR section, ask for pension forecast and the calculations. when you move up a grade in the service, pension is based on your new grade, so converse could apply apply where you move down a grade. there may be some provsision covering ill health.

either way, request a pension forecast, this will give clarity.

 

[Itchy]

Hi,
My sister in law is thinking about retiring from her job. She has over 30years employment from same public service organisation. Three years ago due to ill health she needed to take a step down. This step down amounted to a substantial reducing in salary. Does anyone know, is her pension calculation done from her salaries in the last two years or what I think the best gross salary over the last 5 years. Clarification would be appreciated.

Will she be retiring on grounds of ill-health?

Where the person is retiring on grounds of ill-health, averaging does not apply if the person had the potential for service to avoid the averaging.

Pension FAQ