How to calculate Local Authorities superannuation deduction?

A

avs0020

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Hi there.

Could anyone please explain to me how the deductions are calculated for pension as the percentage deducted from my husband's wage seems to vary from fortnight to fortnight.

The HR department just tell us that its correct and we shouldn't worry which is about as useful as a cat flap on a submarine if it turns out there's a problem when he retires that we could have tackled now if we had known.


Thanks very much
 
Re: How to calculate local authorities pension

Hava a look at the calculators on www finance.gov.ie
 
Re: How to calculate local authorities pension

AVS,

is your husband deemed to be an indoor (officer) or outdoor (non-officer) grade?
Did he join the LA before or after April 1995?

The new pension levy is separate from the normal superannuation contributions. Whereas the superann contributions are based on pensionable pay only (in most cases basic pay only), the penion levy is calculated on gross pay (basic plus overtime, other allowances). Therefore while superann contributions would normally only change when pensionable pay or state pension changes (if PRSI Class A), the pension levy could change from week to week.
 
Thanks so much for the advice to date. Actually its the actual pension deductions that vary (as well as the levy of course). My husband is an officer with a set wage each fortnight but he only joined the council in 2000.
 
I think the following formula is used:

(Pay for fortnight less [2 x weekly contributory OAP x factor**]) x 3.5%
Plus
(1.5% x pay for fortnight)

** The deduction for the contributory OAP amount must "match" the frequency of his pay- so, for example, if he's paid fortnightly, you take twice the weekly contributory OAP and multiply that by 2 again. If he's paid monthly, you take twice the weekly OAP contributory amount and multiply that by 4 (not sure of the exact figure, probably a little more than 4) and so on. In your husband's case, as he's paid fortnightly the factor value will be 2.

I'm not sure of the current weekly OAP amount- I think it's €230.53 but it may have changed.
The result should match his payslip.
 
AVS,
DD is correct with the formula used, however there is another 1.5% of gross required for Spouse & Children contribution.
The state pension is €230.30 per week. If for example your husband was on €2000 per fortnight he would pay in main scheme superannuation contributions:
{€2000 minus 2(€230.30 x 2 weeks)} x 3.5% = €37.76
plus 1.5% of €2000 = €30
Therefore total main scheme contributions would be €67.76 per fortnight.
Plus
the Spouse & Children Contribution of 1.5% of gross i.e. €30 per fortnight.

Main scheme & S&C should not change on a fortnight to fortnight basis.
I would definitely get onto the superannuation section to get it clarified.
 
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