Spouse and children deduction from lump sum

Hi I am due to retire shortly. Got a forecast of my pension. Out of total lump sum 20,919 Euros I have to pay 3,072E for arrears of "Spouse and Children". I never heard of this before. Does anybody know why it has to be paid. I have been told by HR that it is compulsary. My service is made up of 8 yrs in PS and over 6 in Co Council. I am 64 yrs of age so dont think I will benefit from this contribution. Thank you.

Unfortunately, there isn't a way around it. Their position is that you could marry after retirement, and your new spouse would be covered.

Hi Berni. My husband and I had a laugh at your reply. No chance of a new spouse at moment. If I pop my clogs does my present husband get something? If he does I'd better watch my back. Children are all married. Thanks

Ah, having a spouse already does make getting a new one awkward

If you die before your husband, he would receive half of your pension.
As your children are adults, then they won't be entitled to anything, so its only the hubbie you'll have to watch out for!

Redwood,
are you paying S&C now? How many years do you owe for?
If you are PRSI A class the amount owed seems high compared to the gross lump sum you are due.

The liability as stated above does have to be paid.
E

Hi Evening. S and C is on Civil service portion of my service ( where I worked from 1963 to 1971) Calc is 39,556E *7.7671 yrs*1%= E3072.35. I pay PRSI Class A in CO Council. I had never heard of S and C before. This amount will be deducted from lump sum anyway. Thank you

Redwood,
Is your pension going to be calculated in two parts one based on CS service at D class and one pension based on CC service at A class? or is all service based on A rate pension?

If all service for pension is based at A rate,why was the S&C deduction not calculated based on an A rate formula:
{Pay minus 2(State Pension)} x S&C period owed x 1%

{€39,556 - 2(€12,017)} x 7.7671 years x 1% = €1,205.61

If the Council is paying you two separate pension one at D class and one at A rate then I would agree with how they have calculated the liability.

Another question that maybe relevant to you-Did you receive a marriage gratuity? If you did how was the repayment calculated?


E

Evening said:

If all service for pension is based at A rate,why was the S&C deduction not calculated based on an A rate formula:
{Pay minus 2(State Pension)} x S&C period owed x 1%

Click to expand...

The S&C contributions are based off gross pay, not the net pensionable.
From the Dept of Finance Circular (16/84), the calculations are as follows:


Contribution Conditions
1. As in the case of the existing scheme, contributions under the new scheme take the form of
(i) periodic contributions (deducted from salary), and
(ii) non-periodic contributions (deducted from retirement lump sums or death gratuities).
The periodic contribution rate is 1½ per cent of salary.

2. Non-periodic contributions may be charged if at the time of retirement, or death-in-service, the member concerned (a) is married or (b) has been married at some time during his/her membership or either the existing scheme or the new scheme. The amount of the contribution is 1 per cent of pensionable salary at retirement or death in respect of each year of reckonable service (if any) for which contributions have not been paid.

Thank you all for your replies. Having discussed it with HR there is no choice but pay up and look happy.

Redwood Park,

You should be able to claim tax relief on your bill, possibly at the highest rate judging by your salary. This would make a significant dent in the bill.

Regards,

Andrew

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