Incentivised Scheme for Early Retirment



AFAIK its the Salary Point you are on that counts. Not the amount earned.
 
Welfarite said:
Ansd here's another question; if you take unpaid term-time in the year of retirement, I presume the full yearly salary is used in the cacl.?
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I know (having checked my own situation) that persons on reduced working weeks have their pension calculated on the full salary. To do otherwise would be a double penalty, because we accumulate pension years more slowly.

I presume it's the same for term-timers. The salary used to calculate pension is the full rate, but the person only accumulates 9 or 10 months reckonable service in any calendar year.
 
Does anyone here know when you have to be 50 to qualify - I've a pal who is 50 later this year and is wondering what her situation is.
 
From what I recall in the budget statement, the scheme is expected to run from May 1st to the end of the year (and will be reviewed thereafter), so once your pal reaches 50 during that time, she can apply.
 
It seems this scheme is resticted as Psychiatric nurses, teachers, etc cannot avail of it.
 
declanja said:
It seems this scheme is resticted as Psychiatric nurses, teachers, etc cannot avail of it.
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It's not available for areas where vacant posts are being filled as the government's intention is that those retiring will not be replaced.
 
I would imagine that the reason that psychiatric nurses cannot avail of it is to do with the fact that most psych nurses can already retire at 55 so an early retirement scheme is already in place. Not to do with the fact that vacant posts will be filled for these retirees.
 
Conbination of both maybe? It'll all be revealed when they publish the devil in the detail on 1/5
 
The details of the scheme have been published - www.finance.gov.ie

On first glance, it seems to have quite a broad remit (i.e. applies to much of the public sector rather than just the civil service)
 
aonfocaleile said:
The details of the scheme have been published - www.finance.gov.ie

On first glance, it seems to have quite a broad remit (i.e. applies to much of the public sector rather than just the civil service)
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Funny enough, when I read it, my initial impression was that it is quite restrictive. You have to have your mind made up and be gone by 30th Nov. latest. By that date no one will know the details of the budget, thereby cutting out the option of hanging on to see if the Lump Sum will be taxed next year. The lates rumour on that count is that there's a mood among senior Public & Civil Servants to mount a legal challenge to the taxing of the L.S.
 

I think that's the whole point - people who are 50 have to make their minds up fairly quick. They need to get the numbers down.

There is one in our section who is eligible and hadn't made up her mind. My boss would have been able to handle losing her as I cross cover her section but my section being relocated so boss might lose her 2 best staff members before the end of the year.
 
Jeepers, you were up late too, Becky. I have someone near and dear to me who has 39 + years service and will not be 60 until end of 2010. Dilemma: Jump ship now and get non actuarilly reduced L.S. and almost full pension or go on till 60 and risk a lump off your L.S. OR try and persuade the boss to wangle a deferment until 40 yrs service is reached in mid 2010 ???
 

I think that the precise reference to taxation at current rates implies that if people do not avail of this scheme, future lump sums will be taxed in some way. Although the mention of a legal challenge to this has been mentioned, that's leaving the situation up in the air if people do not avail of the scheme within the timeframe, in my opinion. I would imagine deferment would be minimal based on the wording of the Circular. This whole thing could lead to a total drain of the most experienced people in my organisation and you couldn't blame them if the whole taxation thing isn't clarified beforehand.
 
Rumour has it that only that lump sums portion in excess of 100k will be taxed, so that will exclude most public servants.
 
I have a suspicion that it may be a damp squib also. Tight timeframe, restricted opportunities to enter service again. I would think that when people study the circular fully,they will realise that it is couched in such a way that it will apply to a relatively narrow band of employees.
 
declanja said:
Rumour has it that only that lump sums portion in excess of 100k will be taxed, so that will exclude most public servants.
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Many teachers receive over 100k in the lump-sum.

Many retire on 70-75k, so the lump-sum would be 105-115k.
 
Does anyone know whether this applies to university employees? I have tried to contact our HR but all to no avail. I had assumed that a notice would go up but there has been no mention of this scheme.
 
In most universities (not all) it is possible to retire on a full pension with fewer than 40 years of service. My reading of the circular is that this scheme is not applicable if this is the case.
 
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