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ppmeath Above example public or private service New here just interested
Having worked as a Pensions Manager for many years, I think I fully understand how integration works.
If the poster said "my pensionable salary on leaving employment is different to my actual salary" that is the definition used by the scheme.
So for example if the actual salary was €60,000 but pensionable salary was say €42,000 (because the offset was say €18,000- say 150% of €12,000) then the scheme will provide a pension of 2/3rds of €42,000 - €28,000. Then the member gets the State Pension of (say) €12,000 in addition, giving a total of €40,000.
The fact that the State will only pay the €12,000 from age 66 does not impact the promise made by the scheme. It's not a case that his pension has been reduced by the State Pension but rather his pensionable salary is defined as actual salary less the offset.
The point is that the posters scheme did not promise 2/3rds of €60,000 (actual salary). It promised 2/3rds of Pensionable Salary and that is what he gets.
The State deferring the State Pension age to 66 is a separate issue, not under the control of the scheme.
The quote from the Pensions Authority is simply a general outline of how integration works. It makes no comment about the fact that the State Pension age may differ from the retirement age adopted by the scheme.
Pension age may differ from the retirement age adopted by the scheme.
Joe is not wrong. It is your interpretation that is missing the point.
ppmeath Above example public or private service New here just interested
Weekly SCP: €233.30
Annual SCP: €12,131.60
3.33333 times annual SCP: €40,438.66
1/200th of salary below 3.333 SCP for 40 years: 40438.66/200*40 = €8,087.73
1/80 of salary above 3.333 SCP for 40 years: (60,000 - 40438.66) / 80 * 40 = €9,780.67
. The State deferring the State Pension age to 66 is a separate issue, not under the control of the scheme.
Hi not the same in Private sector, I think this will help other people that are in a position to help,I have nothing more to add,
Hi ppmeath, you might recall that I had a discussion with you some time back about pensions and supplementary pension in particular. Wouldn't a person in your own circumstances who retires at 60 be entitled to a supplementary pension to ensure that 50% of final salary is indeed received as a pension from that age. The pensions ombudsman's website even states this as far as I recall.They are usually very similar if they are DB schemes, read the terms of your pension scheme. Don't get caught short. The Pensions Ombudsman is fully aware of this issue and has received numerous complaints from people taking IHR or reaching compulsory retirement age who have been left short in their pension entitlements.
Ppmeath
Your examples are Public Sector. The Private Sector (such as B of I) operate "integration" differently by using the Pensionable Salary approach. The example I gave is typical of the private sector and is correct.
The change of State Retirement age to 66 (and in 2021 to 67) will affect all retirees from integrated schemes- public and private.
Hi ppmeath, you might recall that I had a discussion with you some time back about pensions and supplementary pension in particular. Wouldn't a person in your own circumstances who retires at 60 be entitled to a supplementary pension to ensure that 50% of final salary is indeed received as a pension from that age. The pensions ombudsman's website even states this as far as I recall.
I'm totally confused , as a BOI pensioner I believe the DB scheme under which I retired included no element of " integration ".
I simply received an occupational pension commensurate with years served & in due course am entitled to the State pension.
Ppmeath
Your examples are Public Sector. The Private Sector (such as B of I) operate "integration" differently by using the Pensionable Salary approach. The example I gave is typical of the private sector and is correct.
The change of State Retirement age to 66 (and in 2021 to 67) will affect all retirees from integrated schemes- public and private.
ppmeath , yes I availed of the early retirement package in 2007 but have some years to go before qualifying for the State pension .
No problem there - I paid PRSI throughout my working life & signed on for credits thereafter.
Both the BOI & the Social Welfare office both confirm that , if spared , I will receive the State pension.
The supplementary pension should only apply if you have a PRSI shortfall:
"11.10 Supplementary Pension:
In calculating pension at paragraph 11.7 above, it is assumed (a) that the officer
concerned is always entitled to social insurance benefits and (b) that he/she is eligible
for the maximum personal rate of such benefits."
"However, depending on a particular
individual's PRSI contribution record, it may transpire that - through no fault of the
officer concerned - he/she either has no entitlement to the specified social insurance
benefits, or even if so entitled, is eligible for less than the maximum personal rate of the
Contributory State Pension payable to a single person without dependants."
If you do not have an entitlement to the rate of the CSP, or if you have an entitlement to the rate of another SW payment, such as JSB then:
"In such cases, the supplementary pension payable comprises the difference (if any)
between
(a) the amount of the actual pension awarded to the officer plus the amount (if
any) of the personal rate of social insurance benefit or pension payable to
him/her; and
(b) the amount of the pension which would have been awarded to the officer
if that pension had been calculated by reference to the calculation method
for pre-6 April 1995 officers set out at paragraph"
After the SW benefit and the Occupational part of the pension are added and if they do not make 50%, then and only then is the Supplementary pension applicable, it is not supposed to be applicable if you have full entitlement to the rate of the state pension - which it is assumed you will have after paying over 40 years PRSI contributions.