Help with calculating pension entitlements - public sector worker
- Thread starter redstar
- Start date
Social Welfare Phone Numbers
www.gov.ie
It's DSP Buncrana you need to contact (phone and email address included in the above list)
I phoned the ETB I work in to enquire about NSP. The pension person had never heard about it so I had to explain to her what it was about!
She came back 3 months later having done some homework on it.
I get paid through a centralised system called core portal. I can view my pay slips and sick day entitlements. There is a section for pension but there is no information in there apart from a date for my retirement which is wrong - it is listed as age 65 when it should be 60.
Unions have been poor enough on this - only interested in promoting Cornmarket!
More needs to be done for public sector workers to facilitate proper financial planning for retirement.
Good luck with your efforts to find answers
She came back 3 months later having done some homework on it.
I get paid through a centralised system called core portal. I can view my pay slips and sick day entitlements. There is a section for pension but there is no information in there apart from a date for my retirement which is wrong - it is listed as age 65 when it should be 60.
Unions have been poor enough on this - only interested in promoting Cornmarket!
More needs to be done for public sector workers to facilitate proper financial planning for retirement.
Good luck with your efforts to find answers
I agree. I cannot understand why Cornmarket is promoted so heavily. I can get better value for car insurance when I ring around as an individual rather than using Cornmarket as a broker with the buying power of tens of thousands of public servants. I also don't think their AVC charges are particularly competitive!
Right, so my wife got her contribution history from DSP.
She has 26 years of Class D contributions to 2022 (2023 hasn't been updated yet), so will have 32 yrs at age 60 [NRA].
(She also has 89 Class A from various other work over the years)
Am i right in the following calculations - for pre-95 entrants
- Max pension Lump Sum would be [40 x 3 x Final Salary]/80 - assuming final salary is 45k then lump sum would be 1.5 x 45 = 67.5k
- Max pension income would be [40 x Final Salary]/80 = 22.5k pa
The 8 missing years would mean...
- Pension Lump Sum would be [32 x 3 x Final Salary]/80 - assuming final salary is 45k then lump sum would be 1.5 x 45 = 54k (shortfall 13.5k)
- Pension income would be [32 x Final Salary]/80 = 18k pa (shortfall 4.5k pa)
To make up the shortfall (with 6 years to go) should she...
a. buy back the 8 years (how much would that be?)
b. Take out a PRSA AVC (is 6 years too short a time-scale for this?)
She has 26 years of Class D contributions to 2022 (2023 hasn't been updated yet), so will have 32 yrs at age 60 [NRA].
(She also has 89 Class A from various other work over the years)
Am i right in the following calculations - for pre-95 entrants
- Max pension Lump Sum would be [40 x 3 x Final Salary]/80 - assuming final salary is 45k then lump sum would be 1.5 x 45 = 67.5k
- Max pension income would be [40 x Final Salary]/80 = 22.5k pa
The 8 missing years would mean...
- Pension Lump Sum would be [32 x 3 x Final Salary]/80 - assuming final salary is 45k then lump sum would be 1.5 x 45 = 54k (shortfall 13.5k)
- Pension income would be [32 x Final Salary]/80 = 18k pa (shortfall 4.5k pa)
To make up the shortfall (with 6 years to go) should she...
a. buy back the 8 years (how much would that be?)
b. Take out a PRSA AVC (is 6 years too short a time-scale for this?)
I don't know anything about buying back years.
If she retires at age 60 she has the potential to gain full rate paid Prsi contributions up to age 70.
She currently has 89 A.
If she gained 52 contributions from age 60 to age 69 this would gain her 468 extra full rate paid contributions.
This would bring her to a total of 557 and would allow her to qualify for a partial state contributory pension.
She can achieve these extra contributions by either taking up class A paid employment at age 60 or drawing down a minimum of 5000 euro per year from an ARF.
If she takes up class A paid employment at age 60 for a minimum of 1 week she would gain 2 years of change of status credits. This gives her an extra 104 class A credits.
Her total of reckonable contributions would now be 661.
A full deferred pension at age 69 is 320.30 euro. She would qualify with her level of contributions for a partial payment of 101 euro per week.
If she doesn't intend working beyond age 60 and decided to use an ARF, she would need at least 45000 euro in AVCs after claiming any extra tax free lump sum available to her. She would just need 1 week of employment to secure her change of status credits.
Maybe she could manage this in addition to buying back extra years in the next 6 years.
She could also, after working at least 1 week at class A, make full rate voluntary contributions up to age 66 and possibly up to age 70. These would cost her 500 euro per year.
She could possibly make out a plan if she had less that 45000 euro in her ARF to mix Voluntary Prsi for some years with ARF drawdowns of 5000 euro for other years.
If she retires at age 60 she has the potential to gain full rate paid Prsi contributions up to age 70.
She currently has 89 A.
If she gained 52 contributions from age 60 to age 69 this would gain her 468 extra full rate paid contributions.
This would bring her to a total of 557 and would allow her to qualify for a partial state contributory pension.
She can achieve these extra contributions by either taking up class A paid employment at age 60 or drawing down a minimum of 5000 euro per year from an ARF.
If she takes up class A paid employment at age 60 for a minimum of 1 week she would gain 2 years of change of status credits. This gives her an extra 104 class A credits.
Her total of reckonable contributions would now be 661.
A full deferred pension at age 69 is 320.30 euro. She would qualify with her level of contributions for a partial payment of 101 euro per week.
If she doesn't intend working beyond age 60 and decided to use an ARF, she would need at least 45000 euro in AVCs after claiming any extra tax free lump sum available to her. She would just need 1 week of employment to secure her change of status credits.
Maybe she could manage this in addition to buying back extra years in the next 6 years.
She could also, after working at least 1 week at class A, make full rate voluntary contributions up to age 66 and possibly up to age 70. These would cost her 500 euro per year.
She could possibly make out a plan if she had less that 45000 euro in her ARF to mix Voluntary Prsi for some years with ARF drawdowns of 5000 euro for other years.
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Thanks S Class ! Still trying to get my head around the numbers!
A PRSA AVC seems a good option to have even when started at age 55
Do the benefits from a PRSA AVC have to be taken at the same time as when she retires from her main employment (NRA 60), ie Pay into PRSA AVC for 6 years
or can she keep the AVC until say 66 ?
I reckon she'd need a min pot of 58,500 in a AVC to match the lump sum shortfall (13.5k) and leave the remaining 45k into a ARF....
(So pay in 9,750 pa for 6 years or 6,318 pa over 11 years, to 66)
Buying back 8 years would cost over 20k pa from a salary of 45k !
From https://www.publicservicepensions.gov.ie/en/modellers/
A PRSA AVC seems a good option to have even when started at age 55
Do the benefits from a PRSA AVC have to be taken at the same time as when she retires from her main employment (NRA 60), ie Pay into PRSA AVC for 6 years
or can she keep the AVC until say 66 ?
I reckon she'd need a min pot of 58,500 in a AVC to match the lump sum shortfall (13.5k) and leave the remaining 45k into a ARF....
(So pay in 9,750 pa for 6 years or 6,318 pa over 11 years, to 66)
Buying back 8 years would cost over 20k pa from a salary of 45k !
From https://www.publicservicepensions.gov.ie/en/modellers/
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Yes. But she would only need to withdraw a minimum of 4% per year.
She can only make AVCs until her retirement date from her employment. (probably age 60). She can make backdated AVCs for 2023 up to 31 October 2024.
I don't know if voluntary contributions can be made after age 66.
Assuming they cannot and the remainder in her ARF was only 20000.
She could make minimum withdrawals of 800 euro per year from her ARF until age 66.
During this time she could make voluntary Prsi contributions based on her class A contributions.
After age 66 she could make ARF withdrawals of 5000 per year for 52 class S Prsi up to age 69.
This would give her the necessary extra full rate paid Prsi contributions she needs.
I made a mistake in post #26 in adding in her change of status credits.
She would get the 2 years of change of status credits but assuming that she gets full rate paid contributions in the year she ceased employment, these paid contributions would overlap with that years change of status credits.
This would cancel out that years change of status credits.
You should only calculate an extra 52 change of status credits.
She might also have some pre entry credits.
So her potential contributury pension would be slightly lower than I estimated.
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