Thoughts on the Single Public Service Pension Scheme (SPSPS)

[Itchy]

I think it would be wrong to state that "there's no other benefit". As I said, you're fixating on the notional rate. It's notional. It could be more (if there has been higher wage increases) it could be less (interest rates have gone up).

 

[misemoi]

Question...if someone joins and does eg 20 years service, assuming same salary for entire 20 years, pension is 20/80 ie 25% of average salary.

But the contributory pension is included in this. So eg 100k average salary, 25k pension of which 12.5k is contributory? Or does the pension included in this get prorated as well?

Or is this the disadvantage of joining the public service for <40 years, ie ratio of contributory to occupational pension is higher with less service?

 

[Ent319]

Question...if someone joins and does eg 20 years service, assuming same salary for entire 20 years, pension is 20/80 ie 25% of average salary.

But the contributory pension is included in this. So eg 100k average salary, 25k pension of which 12.5k is contributory? Or does the pension included in this get prorated as well?

Or is this the disadvantage of joining the public service for <40 years, ie ratio of contributory to occupational pension is higher with less service?

If someone worked for twenty years with the same salary under the Single Scheme their pension would be 20/80 less the value of the contributory state pension * 0.5 + lump sum.

Assume salary of €100,000 for twenty years and the State Pension remained at €15,000 for the period for simplicity sake.

That's person's pension benefits after twenty years would be (€50,000 - €15,000) * 0.5 = €17,500 (+€75,000 Lump sum)

If they worked the forty years at same rates it would be €50,000 * - €15,000 = €35,000 (+€150,000 Lump sum).

 

[Ent319]

I was thinking about re-doing this thread when I have time to simplify the first post and capture some of the main points of discussion that have arisen in the interim.

 

[Frozenveg]

Any thoughts on how the SPSPS compares to a pension in the private sector?

For example, private sector employee earning €70k making 5% pension contribution in addition to 10% employer contribution.

Would moving to the public sector and the SPSPS be a major step backwards from a pension point of view if the basic salary remains the same at €70k?

 

[CorkHome2022]

The Single Pension Reform is one of the biggest reasons for lack of recruitment and retention right across the public sector , Cornmarket are doing a very good job at highlighting the difference between Post 2012 and those on Pre95 and Post95 Pensions .

 

[Tadhg22]

Plenty of media coverage today of Heather Humphreys and the upcoming auto enrolment scheme. This is ground we've discussed here before, but given that scheme =€3 employee contribution = €3 employer +€1 state contributions, would members end up better off than under the SPSPS? Are there worked examples out there comparing different scenarios for this?

 

[Conan]

This new Auto Enrollment is aimed at those not already members of an Occupational Pension Scheme. These are predominantly workers in Retail, Hospitality and those in SME's.

 

[Tadhg22]

This new Auto Enrollment is aimed at those not already members of an Occupational Pension Scheme. These are predominantly workers in Retail, Hospitality and those in SME's.

Yes. Has anyone seen any computations for what these contributions would entitle people too, eg. For a 30k salary or 50k salary. I've seen no mention anywhere of what people can expect to get out of this.

For context, I'm private sector and wife if public service

 

[LDFerguson]

If you pay tax at 40% and your employer will match your pension contributions, you're better off in a traditional pension scheme. If you pay tax at the lower rate of tax, the auto-enrolment scheme is better. The auto-enrolment scheme doesn't seem to have any facility to vary your contributions. There's a lot of discussion of the auto-enrolment scheme on Askaboutmoney here.

 

[Tadhg22]

If you pay tax at 40% and your employer will match your pension contributions, you're better off in a traditional pension scheme. If you pay tax at the lower rate of tax, the auto-enrolment scheme is better. The auto-enrolment scheme doesn't seem to have any facility to vary your contributions. There's a lot of discussion of the auto-enrolment scheme on Askaboutmoney here.

Thank you.

Unless I'm mistaken, there are no computations in those threads of expected pension entitlements for someone say on an average salary of say
50k or whatnot? I can't find such data anywhere!

 

[gort_gráinneog]

Considering @Ent319 's idea to (maybe) re-do this thread

I was thinking about re-doing this thread when I have time to simplify the first post and capture some of the main points of discussion that have arisen in the interim.

I am uploading a 2024 updated and more refined version of the pay calculator I uploaded last year. It calculates correctly for me and a few of my colleagues (within a few cent for some, and within a euro or two for others). Just to note this is only for Post 2013 recruits to the public service.

Considering this is a pension related thread, I have also included a quick calculation in it that will show the maximum amount you could contribute via AVC to attract tax relief for your age range accounting for your standard contributions already made through payroll to the Single Public Service Pension Scheme (SPSPS).

I believe some of the formula in this spreadsheet will only work in Excel 2019 and later versions.

 

[Ent319]

That's great gort thanks. It's going to be a few weeks before I will have the time to sit down and write a new thread but if anyone has any questions about what they'd like covered let me know.