The two pension entitlements are calculated separately. If they have sufficient PRSI "stamps" for a full State Pension then they get that as well. In your example they get 30k plus the State Pension.Apologies for how potentially 'basic' this query is. I've searched this forum and Googled, and I may be misreading some of the posts, but I've come across different opinions. If someone will get €30k p.a. on retirement through the Single Scheme, am I correct that they do not get anything from the State Pension?
So say the Single Scheme will pay out €30k p.a. and the CSP is €13k (rounded up), will they receive only €30k p.a. or will they get €43k p.a. (SS + CSP)?
If they qualify for 30k in the Single Scheme then they get 30k. There is no adjustment to take account of the State Pension.The work pension is adjusted downwards, or co-ordinated with the SP.
For ease let's assume you had 3 people entered the public sector on €60k and never received a pay increase over a 40 year career. They should all retire with the same entitlement albeit from slightly different sources.
A Pre 95 public sector workers did not pay PRSI so all their pension came from their occupation contributions. In retirement they receive a pension of €30K (€0 state pension+ €30k public sector pension)
Post 95 the system was integrated. So if our example has joined under that scheme they would have paid 4% PRSI. In retirement they will receive €30k (€13k state pension + 17 public sector pension).
Single service scheme as above: €30k (€13k state pension + 17 public sector pension).
If someone will get €30k p.a. on retirement through the Single Scheme, am I correct that they do not get anything from the State Pension?
So say the Single Scheme will pay out €30k p.a. and the CSP is €13k (rounded up), will they receive only €30k p.a. or will they get €43k p.a. (SS + CSP)?
To ground it in the real figures.
> Joined Public Service in 2016
> Will accrue 35 years full-time (100%) employment until retirement
> Average salary (taking current payscale increments into account) = €90k
Thank you again for this. Very helpful. Also suggests the estimator tool is inaccurate.Take the State Pension currently as €13,800.
So the CSP threshold is this multiplied by 3.74 = €51,600. You get 0.58% of this multiplied by your years of service = €10,475.
The amount above the CSP threshold (90,000 - 51,600) is €38,400. You get 1.25% of this by years of service = €16,800.
So the approximate estimate for your PS pension is 16,800+10,475 = €27,275.
Quite separately from this you apply to the DSP for your State Pension at State Pension age. If you meet the criteria for a full State Pension you will currently get about €13,800. If you only have 35 years worth of contributions/credits on your record you may only get 35/40 of this. But you may have PRSI (paid or credited) from elsewhere to make up 40 years worth.
Either way, you get both the PS pension (as above) and the State Pension (full amount or 35/40). If you do manage to qualify for the full amount of State Pension you get (rough estimate) €27,275 + €13,800 in combined pension income
Of course, this is a notional and rough estimate as we do not know what your actual career average earnings will be.
I'd suggest having a look at the Single Scheme Member Booklet and working through the calculations on Page 10 for contributions and 16 onwards for benefits. I did this myself recently to satisfy my curiosity.
The way I approached this was to calculate the annual referrable amounts I expect to build up each year until retirement, based on my expected grade/increment within that year. Summing them all together should give you a feel for both the lump sum and pension benefit you should expect.
In my own case, with salary/service not dissimilar to your own:
Sum of 'referrable amounts' accrued over my career to give annual Pension Benefit: 29.5k
Plus (full) Contributory State Pension p/a: 13.8k
Total Pension: 43k
Just so I don't have my hopes up incorrectly. Where might I read the information about how the pension breaks down like this?For ease let's assume you had 3 people entered the public sector on €60k and never received a pay increase over a 40 year career. They should all retire with the same entitlement albeit from slightly different sources.
A Pre 95 public sector workers did not pay PRSI so all their pension came from their occupation contributions. In retirement they receive a pension of €30K (€0 state pension+ €30k public sector pension)
Post 95 the system was integrated. So if our example has joined under that scheme they would have paid 4% PRSI. In retirement they will receive €30k (€13k state pension + 17 public sector pension).
Single service scheme as above: €30k (€13k state pension + 17 public sector pension).
Just so I don't have my hopes up incorrectly. Where might I read the information about how the pension breaks down like this?
Pre 95 workers pension scheme is based on final salary, single scheme is based on career average earnings which is an important distinction.both pre and post 95 workers with 40 years service will retire on a pension of 50% of pensionable earnings.
In general, my gut feel was to agree with your thinking @NoRegretsCoyote , though I had to run some numbers to check. And of course this all depends based on individual circumstances and assumes my own calculations are correct...To simplify greatly, is it fair to say the following:
1) a single scheme entrant on a high salary with no promotions will not have a much lower pension than if they had entered pre-2013
2) a single scheme entrant who enters at a low grade and has many promotions would have a much better pension if they had entered pre-2013
So, on the basis of the above, both single scheme pensions are lower than the corresponding pre-2013 pension, and case 2 is quite a lot lower.
Is the Public Sector pensions still vastly superior to working in the private sector? I recently spoke with an advisor from Standard Life about potentially setting up a PRSA AVC and he told me it would be very difficult for a private sector worker to match the public sector pension even still to this day, despite public sector pensions not being what they once were.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?