Local Government (Non-Officers) scheme. Any point in working beyond 40 years service?

Marianne

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Someone I know is in the Local Government (Non-Officers) scheme and will have completed 40 years by age 58.

Scheme permits retirement from age 60 but is integrated with Social Welfare pensions so he'd be on a lower pension until the State Benefits kick in.

Is there any benefit to him, from a pension perspective in working longer than the 40 years?

Thanks.
 
If he has accrued an average of 48(I think) PRSI contributions per year at age 60, ther is no additional benefit built up by working beyond 60. He will, of course continue to be paid as he is now, if he decides to continue working to 65. Have a look at www.welfare.ie. Retirement, and the timing of it , is a personal decision for the retiree. Your friend should also enquire if his employer organises any ptre-retirement courses. I know the HSE holds them, but they have cut the length and the content in the last 2yrs.:D
 
A lot of PS workers opted for early retirement on the basis that they felt there was a possibility that their lump sum entitlement would be taxed in forthcoming budgets.
 
A lot of PS workers opted for early retirement on the basis that they felt there was a possibility that their lump sum entitlement would be taxed in forthcoming budgets.
I think the likelihood of that happening has been greatly reduced with the acceptance of the Croke Park deal.
 
Marianne,
you friend needs to get information from his employers regarding whether or not a supplementary pnesion would be payable if he was to retire from age sixty. The supplementary pension is payable in the Local Government Superannuation scheme when a person retires before he/she is entitled to state pension at 65/66, who receives no other welfare payment and remains unemployed following retirement. The supplementary is basically an enhanced pension until person receives state pension.

Evening
 
another question on 40 years service

Grateful for answer to hypothetical question,...I am in the Civil Service,....If I have 40 years service at the age of 60 and do not want to retire, will I be subject to any pension related deductions after the age of 60?
 
The only reason is that they are the rules of the public service pension schemes.

In normal times, there could have been a hope, or even expectation, that one's pay might increase after reaching the age of 60 (promotion, increments, general pay increases) and that would lead to a higher lump sum and pension. These are not normal times.
 
Thanks, seems odd that if I worked til 65, I would be paying pension contributions for 45 years, but only getting a max benefit for 40 years.
 
In fact, because of the Croke Park agreement, it might be advantageous for a person to retire before the end of 2011. If you are in such a position (I note you posed your question as a hypothetical one) then it would be worth your while seeking more detailed advice.
 
Thanks, seems odd that if I worked til 65, I would be paying pension contributions for 45 years, but only getting a max benefit for 40 years.

You'll still be getting a full salary so it makes sense you keep contributing to the scheme that will be funding you when you retire.
 
This is how DB schemes work!

It depends on the rules of the scheme but in some cases it makes sense to continue working and contributing after you have clocked up the 40 years service. For instance if you got a promotion and wage increase and would be retiring on a larger salary.

Please note that the op asked about "Local Government (Non-Officers) scheme". If posters want to discuss other schemes then they should open a new thread to do so.

aj
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