Pensions Council: "€33k a year pension needed for 'comfortable' retirement"

Protocol said:
For most PS hired post April 1995, the PS work pension is "integrated" or "co-ordinated" with the State Pension.

After 40 years service, the combined work + State Pension should be equal to 50% of final salary.



It is possible, under certain conditions (Gardai, maybe prison officers), hired before April 1995, with 30 years, not 40 years required, to manage to get a 50% PS work pension, AND a State Pension.
Click to expand...
Yeah this officer would have been hired circa 2010. He reckoned a pension of 1000 a week after 67 when contributory state pension kicked in which would be more then 50% of final salary i would imagine or actually maybe not as with overtime prison officers get quite well paid. Seemed v generous to me as they also get the lump sum on top.
 
Protocol said:
It is possible, under certain conditions (Gardai, maybe prison officers), hired before April 1995, with 30 years, not 40 years required, to manage to get a 50% PS work pension, AND a State Pension.
Click to expand...
It is possible for any pre 95 PS worker who retires at age 65 to qualify for a portion of the State Contributory Pension.

They can, by various methods, pay reckonable prsi contributions up to age 70. When they reach the 260 full rate paid level, they qualify for a pro rata State Contributory Pension.
 
S class said:
It is possible for any pre 95 PS worker who retires at age 65 to qualify for a portion of the State Contributory Pension.

They can, by various methods, pay reckonable prsi contributions up to age 70. When they reach the 260 full rate paid level, they qualify for a pro rata State Contributory Pension.
Click to expand...
Do post 1995 ps workers qualify for Contributory pension, this man was hired circa 2010.
 
confused87 said:
Yeah this officer would have been hired circa 2010. He reckoned a pension of 1000 a week after 67 when contributory state pension kicked in which would be more then 50% of final salary i would imagine or actually maybe not as with overtime prison officers get quite well paid. Seemed v generous to me as they also get the lump sum on top.
Click to expand...

Overtime is generally not pensionable in the public service and I imagine this also applies to prison officers. However, various allowances are pensionable. This would yield a pension greater than 50% of standard salary (inc State Pension). Perhaps this is what he means?
 
Ruffian said:
Overtime is generally not pensionable in the public service and I imagine this also applies to prison officers. However, various allowances are pensionable. This would yield a pension greater than 50% of standard salary (inc State Pension). Perhaps this is what he means?
Click to expand...
Yes maybe i was just surprised that ps workers also get contributory pension and their pensionable salary is not deducted this like in the private sector where it is deducted 1.5times pensionable salary.
 
confused87 said:
Do post 1995 ps workers qualify for Contributory pension, this man was hired circa 2010.
Click to expand...
He has 15 years of post 95 service.
This means that 15/40ths of the Contributory Pension is integrated into his Public Sector pension.

If he has Prsi contributions from other employment he can get extra contributory pension.

If he has 25 years of Prsi from other employment he would also get the remaining 25/40ths of the Contributory Pension.
 
S class said:
He has 15 years of post 95 service.
This means that 15/40ths of the Contributory Pension is integrated into his Public Sector pension.

If he has Prsi contributions from other employment he can get extra contributory pension.

If he has 25 years of Prsi from other employment he would also get the remaining 25/40ths of the Contributory Pension.
Click to expand...
Cheers, PS pensions really are top notch compared to private sector.
 
confused87 said:
Yes maybe i was just surprised that ps workers also get contributory pension and their pensionable salary is not deducted this like in the private sector where it is deducted 1.5times pensionable salary.
Click to expand...

For PS workers on Class A PRSI (all post-1995 and some pre-1995 entrants) a "full service pension" should amount to 0.5 times "pensionable remuneration". This is inclusive of the State Pension. "Pensionable remuneration" is pensionable salary plus any pensionable allowances. So the actual Occupational Pension is 0.5 * pensionable remuneration minus the full State Pension.

That is for pre-2013 entrants (who are Single Scheme members).
 
confused87 said:
Do post 1995 ps workers qualify for Contributory pension, this man was hired circa 2010.
Click to expand...

Yes, all PS hired since April 1995 pay full-rate PRSI as normal, and should qualify for a State Pension.

The State Pension is integrated with their work pension.

The two combined pensions will make up 50% of final salary for a PS worker hired in 2010, assuming they do 40 years.
 
confused87 said:
Cheers, PS pensions really are top notch compared to private sector.
Click to expand...
Certainly not compared to my Defined Benefit Bank of Ireland Pension scheme which guarantees 2/3rds of your final salary after 40 years service and the contributory state Old Age Pension when you reach 66.
The true Rolls Royce pensions are those who benefit from good private sector schemes and then qualify for the OAP
 
I won’t bore anyone with the details but any new entrant to the public service post-2013 is on a materially worse pension deal than anyone who entered before.

I’d go so far as to claim a worse deal than someone contributing the equivalent to a private sector DC fund.
 
Was only reading that this morning Clubman
And I thinking I'm so glad I was born when I was because I don't think I'd be quite a confident about my future if I was 30 years younger
 
@ClubMan

Most people with a working adult lifetime behind them will hit retirement age with a mortgage paid off or with a social rental.

I think the big losers are those who suffer marital breakdown relatively close to retirement. The private rental sector is just too expensive long term.

I would be in favour of more flexibility around things like lump sum drawdowns so people who really need to can get on the housing ladder a second time.
 
Deiseblue said:
Certainly not compared to my Defined Benefit Bank of Ireland Pension scheme which guarantees 2/3rds of your final salary after 40 years service and the contributory state Old Age Pension when you reach 66.
The true Rolls Royce pensions are those who benefit from good private sector schemes and then qualify for the OAP
Click to expand...
Have DB CARE myself, not as good as DB final salary which i had initially until it was changed but this ps worker seemed to have a grand a week at current rates as a pension all inclusive. Seemed very good for prison officer.
 
confused87 said:
Have DB CARE myself, not as good as DB final salary which i had initially until it was changed but this ps worker seemed to have a grand a week at current rates as a pension all inclusive. Seemed very good for prison officer.
Click to expand...

He'd need to be getting around €104,000 pa (including allowances) at current rates for that (or anticipating promotion to the equivalent). Maybe so. Or maybe he will be like some who have posted here complaining that their pension was not what they had been expecting. (I have no idea of prison officer pay and allowance rates).
 
SquirrelChaser said:
Those figures align with my own estimate of my retirement needs based on my current expenditure (including health insurance for the entire family).

But the RTE report is very clear that these numbers will vary according to personal circumstances.

It's also pretty clear that the state pension won't cover much at all past the basics. And for many people they'll struggle on it even for the basics.
Click to expand...

As has been pointed out right through this thread, what is adequate is relative and one persons definition of luxury is another's frugality.

From the experience of my own parents and aunts and uncles who grew up and raised families in the hugely challenging economy of Ireland of the 1960's to 1980's, reaching state pension age (and the associated entitlements) offered more financial security than they'd ever attained in their working lives. So much so that (and perhaps it an cultural or Urban v's rural thing also) that those that own their own house and have reached pension age, are actually able to save a considerable chunk of their state OAP each week. Unfortunately (or otherwise, in terms of ones perception) it means that their deprivation of luxurious spending on themselves now, means a surplus will be left for their offspring to squander or the state to claw back after they die.
 
You must log in or register to reply here.
Back
Top