Husband has 10 years of NI contributions in the UK straight from school in Ireland, followed by 23 years paying full rate A class PRSI in the private sector in Ireland. He began a new job last year in the civil service, still paying A rate PRSI. Assuming he retires at 67, he will have 17 years of civil service pension contributions. Single pension scheme includes State Contributory OAP in this pension payment? As he meets the conditions for a full State COAP already, how will this work for him? Will he get 23/40 of a state pension for his private sector employment and the other 17/40 included in his civil service pension? The info below from Citizen's Information refers to mixed insurance rates which is not his case and so has us confused:
I am a public servant for the past 24 years in Ireland
My husband and I are both 50.
Thanks Earlyriser, it is that pro-rata element of the state pension I was unsure of for my husband's Occ pension. The Single Scheme calculator suggests they would but I figure it is for a typical employee and not one with so many private sector contributions. It makes sense that the deduction from Occ Pension for state pension would be pro rata as you outline.If you are Class A PRSI public servant then your Occupational Pension is also coordinated, like your husband's. So lets say for simplicity that your pensionable salary is €80,000 and you continue working until you have 40 years service. Then your Occ Pension is roughly (€80,000 * 40/80) - State Pension = €40,000 - €13,000 = €27,000. So at State pension age you would be eligible for two pensions, the Occ Pension from your former employer (€27,000) and your State Pension from DEASP.
Now lets say that someone on the same salary had only 18 years public sector service but, like you and your husband, at retirement had 40 years of Class A PRSI contributions. The Occ Pension rough estimate would be (€80,000 * 18/80) - (State Pension * 18/40) = €18,000 - €5850 = €12,150. So at State Pension Age this person would receive an Occ Pension from their fromer employer of €12,150. They would also be eligible for the full State Pension of €13K. The State Pension is based on their total PRSI history, public and private sector.
It sounds like your husband is likely to be in a similar situation to this second example - only that it is harder to work out his pension entitlement because he is in the Single Scheme and it is based on career average earnings rather than final salary, as in these examples.
Thanks Earlyriser, it is that pro-rata element of the state pension I was unsure of for my husband's Occ pension. The Single Scheme calculator suggests they would but I figure it is for a typical employee and not one with so many private sector contributions. It makes sense that the deduction from Occ Pension for state pension would be pro rata as you outline.
Assume two people in both schemes had a career of 40 years with pay in every year or €50k. (I know this is impossible with increments, but just for the sake of argument). Would the pension of both people be the same?
So it all depends on how reliable an indicator the CPI is of real world changes in costs.
Would appreciate info re planning for our pensions. A lot being asked I know but any light that anyone can shine will be hugely appreciated!
My husband and I are both 50.
Husband has 10 years of NI contributions in the UK straight from school in Ireland, followed by 23 years paying full rate A class PRSI in the private sector in Ireland. He began a new job last year in the civil service, still paying A rate PRSI. Assuming he retires at 67, he will have 17 years of civil service pension contributions. Single pension scheme includes State Contributory OAP in this pension payment? As he meets the conditions for a full State COAP already, how will this work for him? Will he get 23/40 of a state pension for his private sector employment and the other 17/40 included in his civil service pension? The info below from Citizen's Information refers to mixed insurance rates which is not his case and so has us confused:
If you meet all these conditions, you may qualify for a pension proportionate to the number of contributions that you paid at the full rate. For example, if you worked for 40 years and 10 of those years were in the private sector, you would get one-quarter of the full pension.
I am a public servant for the past 24 years in Ireland and have 8 years of NI contributions in the UK, only 2 years of PRSI in the private sector in Ireland. We are trying to decide if we should pay for gaps in our NI from 2006-2016 which is allowed until April 2023 but at current rates. Approx cost for 10 years is GBP 7000 each at Class 3 rates. Normally one can only go back 6 years, this is a once-off concession due to changes in their pension rules. We are trying to establish if we have to pay Class 3 or if we might be entitled to pay Class 2 which is a total of approx GBP 1800.
Husband has €47000 sitting in a private pension fund administered by a previous employer and has to decide how to proceed with that now as he never completed his Leaving Service Options form 12 years ago!! I have AVC's worth €34000 as I might buy notional service as I started late.
Maybe we need a financial advisor! Thanks so much for any insights anyone may have.
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