Planning for retirement in 20ish years

[LS400]

Also remember that final benefits (pension per annum and lump sum) are based on salary close to retirement

I have it on very good authority, that a PS in a senior position turned up for work Saturdays and Sundays in his final year pre retirement with many news papers in hand to max out the above. This is within the last couple of years.

If this practice is accepted and encouraged, its a slap in the face to all the hard working tax payers in this Country .

 

[Early Riser]

Well, this has certainly gone a long way from the original post which was a fairly straight- forward query from someone trying to work out what their entitlement might be under their pension scheme. I would have thought it a good idea for people to do this. I don't think the OP was responsible for designing the pension scheme, nor were they complaining about it, or comparing it to anyone else's.

Perhaps if other people want to have a general discussion about public service pensions, etc., a separate thread might be appropriate? And, perhaps, even another thread still for those who want to express outraged indignation on behalf of "all the hard working taxpayers in this country". I suggest that it might be less discouraging for the simple information-seeker.

 

[Threadser]

[

So are you saying that the personal contribution to the superannuation scheme plus the Pension-Related Deduction, paid over 34 years, would be more than the gratuity and pension paid to a PS/CS worker over an average lifetime post-retirement? Have you any figures to back up this claim?

https://paycommission.gov.ie/wp-content/uploads/INTO-TUI-pensions-1-Single-Scheme.pdf.
My post was in reply to a poster who stated that the private sector would pay for the OPs retirement. This is untrue. EveryCS/PS worker contributes from day one of their working lives to their pension scheme. Pre 95 PS pensions were a good deal but more recent schemes are far less generous.

 

[The Oggster]

Thanks Early Riser. You seem very knowledgeable on the subject. I've seen you in other threads and appreciate your time in explaining it.

I might have been over ambitious looking at <60 but will look at early 60s. I'll look into an AVC too.

State pension will probably be at least 70 by the time I retire anyway.

 

[The Oggster]

And the private sector will work till they are 68 so as to pay for this early retirement for the rest of your natural life. Absolutely crazy.

You do know I'm paying full rate PRSI, just like people in the private sector? And that my pension of 50% salary (If I had the full 40 years contributions) includes the state pension? This is reduced if I don't have the full 40 years.

Are you paying into a private pension?

 

[LS400]

Yes, I am paying into a private pension.

It's the mentality of your thoughts though, being in the PS environment.
You just don't see that anywhere else, as in how little do I have to do to get a reasonable pension..

This is not jealousy, my other half is in the PS, and she/we will do well out of this. But it doesn't make it right.

 

[Threadser]

The fact that is often ommitted in these comparisons is that A rate PRSI contributions alone are required for workers outside the PS/CS to qualify for the contributory state pension. This doesn't go anywhere near the cost of providing this pension particularly when you could have worked part time for a period of 10 years and qualify for the full state contributory pension. PS/CS workers pay an additional contribution (currently 15% approx of salary approx including PRD depending on income) and their pension partly comprises the state pension. I know the system is currently being reformed and the proposal is that we will have a compulsory pension enrolment for all workers. This is the only way forward if pensions are to be sustainable into the future.

 

[Opus2018]

I have it on very good authority, that a PS in a senior position turned up for work Saturdays and Sundays in his final year pre retirement with many news papers in hand to max out the above. This is within the last couple of years.

If this practice is accepted and encouraged, its a slap in the face to all the hard working tax payers in this Country .

Hi LS400,

Are you trying to tell me this person turned up on weekends to boost his pension and lump sum entitlements by say 104 days (2 weekend days x 52 weeks) or 0.4 of a year? This doesn't even make sense as the contract states your hours of work are from Monday to Friday. Ok he might be on shift allowance, but given you've said it's a senior position, that's somewhat unlikely... Actually to more blunt, I don't believe it - senior positions are not an overtime grade - if this story is true, it's fraud plain and simple.

Best,

Opus2018.

 

[LS400]

I kid you not; I wish it were a joke,. This is reality. I have no agenda to make up any kind of a story. Anyone who dismisss this as some kind of folly, is imo, turning a blind eye to “reality”

 

[Allpartied]

Hi LS400,

Are you trying to tell me this person turned up on weekends to boost his pension and lump sum entitlements by say 104 days (2 weekend days x 52 weeks) or 0.4 of a year? This doesn't even make sense as the contract states your hours of work are from Monday to Friday. Ok he might be on shift allowance, but given you've said it's a senior position, that's somewhat unlikely... Actually to more blunt, I don't believe it - senior positions are not an overtime grade - if this story is true, it's fraud plain and simple.

Best,

Opus2018.

I think you are right , public sector pensions are based on basic salary, with some provisions for additional allowances. Doing overtime, wouldn't count towards the pension, maybe the lump sum, if the individual hasn't reached 40 years service. They could make contributions to an AVC, in that case, and be allowedd a higher tax free lump sum by revenue.

I've certainly heard of nurses, maybe other emergency workers, using this ploy.
By working weekends, bank holidays, nights, as much as possible in the closing year, it is possible to boost the final pension.
This is because the shift allowances, are pensionable, for some staff.
I don't see the problem, the rules are the rules. They still have to work these weekends, nights, bank holidays, certainly won't be sitting, feet up, reading the papers.