Preserved public service pension - conversion of lump sum into spouse and children's pension

I resigned from a public service job some time ago and have a preserved public service pension. I'm a post-2004, pre-2013 entrant for seven years.

I wasn't married and had no kids at the time and didn't pay the higher spouses and children's pension contribution rate. My pension won't be huge, at today's rates something like €400 a month and a lump sum of €22k based on a final salary of around €78k.

Am I right in thinking a portion of my lump sum can be converted at 65 into an entitlement to a spouse's pension? I read on the FAQ that:

Do I pay for the Spouses' pension? Periodic deductions of 1½% of salary (plus pensionable allowances) are made during an officer’s working life. In addition, a single deduction of 1% of final salary is made from the retirement lump sum or death gratuity, as appropriate, in respect of each year of reckonable service for which periodic contributions have not been made. This would include pre-scheme service and any potential service to age 65 (60 in the case of Prison Officers) credited for the spouse’s pension. It is possible, in certain circumstances, to reduce the amount of this lump sum deduction by making additional periodic contributions during service. (Please contact your Personnel Section for details). If, however, a member remains single throughout membership of the Scheme, they pay no non-periodic contributions.

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So if I work this out I could at 65 opt in to the spouse's and children's scheme by a deduction from lump sum of 7% of final salary, so about €5.5k. Is this right?

TBH I am not even sure it will be worth it at the time as my kids will be well grown up and wife has own pension which should be comfortable.

NoRegretsCoyote said:

7% of final salary of €78k is €56k

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7% of this salary is €5,460?

Threadser said:

7% of this salary is €5,460?

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You're right, I will adjust.

It states that 1% is paid for any potential service years to age 65. Therefore you might be liable for a lot more than 7%.

S class said:

herefore you might be liable for a lot more than 7%.

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But I have a preserved pension having resigned after seven years service.

How could it be more than 7% of final salary?

In my case I retired at age 56 with a preserved pension payable at age 60. I was a member of the Spouse and children's scheme. There was a deduction of 1% per year for the 4 years to age 60 taken from my tax free lump sum. I had 38 years of service at age 56. Therefore my experience is that 1% per year is deducted to pension age.