Key Post: Superannuation: Civil and Public Service Pensions



Hi, I have a question about superannuation. Basically I'm very unclear as to what it is.
I understand it is a governement pension for state employees like doctors and nurses.
My question is is it enough, do you need to get an additional private pension to be comfortable in retirement?

title edited by ajapale


Frequent Poster
Re: Superannuation

Anything useful general info about superannuation wmong these Google links?

My question is is it enough, do you need to get an additional private pension to be comfortable in retirement?

Not being smart or anything but as with pension cover in general it all depends on what your plan for a "comfortable" retirement fund is. You need to estimate what your target is and then work backwards to what pension savings you need to make now to achieve that. This may involve reviewing your overall finances/situation in detail. You may need independent, professional assistance with this.


Re: Superannuation

Hi Matc66,

Google Definition for Superannuation

Superannuation is a rather old fashioned word used to describe pension schemes.

In Ireland it is used (in the main) to describe defined benefit (DB) schemes which were set up under by leglislation.

Schemes typically described as superannuation are:
The Civil Service
Local Authorities
Health Boards
The Guards, the Army etc.

These schemes are quite complex as they have varying degrees of deduction and benefits. They are unfunded schemes. This means that the government take your deductions but do not put the money into a fund to back the pension scheme. When the time comes to pay your pension the Government pays this out of current expenditure.

Some commercial semistate organisations such as the ESB have funded superannuation schemes. These schemes operate in much the same way as private DB schemes as described in the key post above.

In general the benefits provided in these public sector supeannuation schemes are second to none.Indeed the Civil Service Scheme is very generous offering pensions linked to the salary of the present incumbent of the job you retired from.

Each scheme will have a scheme booklet explaining the benefits and the relevant deductions. You should contact your HR / Personel department and ask them for a copy.

Unfortunately you will find very little in AAM about these public sector pension schemes.

If you can be more specific about what branch of the public service you are in perhaps the answers can be more focused. Also since benefits are related to the number of years service let us know how many years of Supeannuation service you have and how many years you intend staying with the agency/service.



Re: Superannuation

They are unfunded schemes. This means that the government take your deductions but do not put the money into a fund to back the pension scheme. When the time comes to pay your pension the Government pays this out of current expenditure.
Don't think this is true anymore. It was up to several years ago when Charlie McCreevey set up a pension fund. The intention being that future public service pensions would no longer come out of current expenditure when there will be fewer workers than pensioners. Strategic planning due to the demographic change. As far as I know there's a couple of billion € in the fund now. Think it's an off-shoot of the Debt Management Agency. Good old Charlie.

One of the principal reasons, in spite of CelticTiger, there hasn't been enough cash left over for the beleagured health and education services. That's where the money is going.



Re: Superannuation

Hi Sherib,

In a pension terms a funded scheme means that the emeployer contributions and employee deductions are 'ring fenced' and protected within the scheme.

In the unfunded civil and public service schemes employee deductions are not protected within the scheme. I take your point that Charlie has been prudent and has established a fund to meet this future liability. But they are still described as unfunded.

I hope this is not too confusing.



Re: Superannuation

Hello ajapale

Very interesting. I thought that fund was to guarantee future pensions? If it's not 'ring fenced' and unfunded could it have been set up that way so the Gov. can dip into it when the need arises?

They will probably have to find a couple of billion somewhere to pay back the money they robbed from the vulnerable.

It amuses me that it's OK to dodge tax, set up off shore accounts etc etc, thereby effectively swindling taxpayers, yet there are a lot of protestations about repaying those (or their relatives) who were robbed. Common theft. I agree with Vincent Browne's leader in the I.T. this week.

The relatives don't need it! Not many in this country now who don't "need" as much as they can get their hands on! A double standard. Having said all that, human nature being what it is, it is very likely that the first in the queue may be relatives who didn't give a toss. But that is not the point. Stealing is stealing and the excuses put forward are pathetic. Mary Harney is the only shining light in all of this.



Frequent Poster
Re: Superannuation

I agree with Vincent Browne's leader in the I.T. this week.

It was funny (in a black way) to hear somebody or other on his programme the other night defending the illegal possession of OAP's money and proposal to give them up to Eur 30 a week for a "few bottles of stout" and other discretionary spending under the proposed new rules. Based on that I'm not looking forward to my twilight years right now!


Re: Superannuation

The discussion is beginning to drift from the original question posed.

Here on AAM we have very little information regarding Civil and Public Service pensions. The two pension key posts we have explicitly exclude Civil and Public Service Pensions. Im hoping that some decent information concerning these pension schemes can be put together and compiled in a key post at some time in the future.

In the meantime it would be great if we could keep the general discussion below the line and keep this topic for the 'nuts and bolts' issues surrounding how these schemes work and what deductions and benefits state employees are entitled to.



Public sector occupational pension

Right people, here we go, an explanation of the Public Sector Occupational pensions in Ireland.

First off, these are separate from PRSI social welfare pensions, which nearly all employees will get.

OK, a typical public sector worker pays a contribution rate of 6.5% of salary. It is defined benefit scheme. The norm is to make 40 years contributions.

The benefits are as follows: a pension of 1/80 of final salary per year paid in. So if you pay in for 40 years, that's a pension of 40/80 of final salary.

i.e. pension = max. 50% of final salary.

The tax-free lump-sum is 3/80 of salary for each year you pay in. So if you paid in for the full 40 years, that makes 120/80 of salary.

i.e. lump-sum = 150% of salary max.

If you have paid in fewer that 40 years, then your pension and lump-sum are reduced accordingly. This is where private AVCs come in. Public sector workers can get these to make up for missing years, or to retire early on enhanced pension.

OK, next, the annual pension is index-linked, tied to the salaries of the grade you worked in. So a retired teacher gets a % increase in pension the same as a working teacher.

These superannuation schemes are generally unfunded. They are underwritten by me and you, the taxpayers.

One point, for civil servants, one difference is a 0% contribution rate. The rationale for this is that they get paid less than an equivalent private sector worker (??).

Another point, since 1995, public sector workers now pay full-rate PRSI and so are entitled to the Old-Age PRSI pension. What happens is that the superannuation and the PRSI are integrated. So they actually pay less than 6.5% to superannuation, and come oout with the same benefit as pre-1995 employees.

Now Charlie McCreevey pension fund (1% of GDP each year) is to prepare for future liabilites in both the state pensions (social welfare) and the public-sector occupational pensions.

But the PRSI pension, at 179 a week, and only increased at the Minister's discretion, will not be the main liability. As the public-sector schemes are so generous, this fund will have to be used to pay for them.

So, me, you, and everybody else is sacrificing 1% of GDP now (€1,300 million) to pay the pension of current public-sector workers.

Does that help???


Re: Superannuation

Sorry, I did go off at a tanget. :eek:

A very good explanatory post from Protocol.

Still wonder why the McCreevey fund isn't described as 'Funded'. Doesn't make sense to me. Is it one rule for the private sector and another for the public?


Re: Superannuation

thanks everybody for answering my question, seems to have turned into quite a lively post.
To add more info to my original post I'm a doctor working in a public hospital in the erha. I've never been provided with information about superannuation or any pension schemes so I had to come here. Thanks.


Re: Superannuation

Thanks Protocol for the excellent surmmary.

The following piece interesting (if a bit complicated)

Model Employee Superannuation Scheme for State-sponsored Bodies

It refers to a "Local Authority Superannuation Code" which I assume does much the same thing in defining the pensions for Local Authorities and Health Boards.

If any one has any more information on Public Sector Superannuation Schemes (and in particular the Health Boards) please post it here.



Re: Superannuation

This is an interesting summary of public service superannuation arrangements. I cant find a date for the review so it may be some what out of date:
Commission on Public Service Pensions Interim Report - Chapter 2

It covers the following categories of public sector employee:
Civil Servants
Permanent Defence Forces
Garda Síochána
National and Second Level Teachers and Clerical Support Staff in Schools
Third Level Education
Health Service
Local Authorities
Non-Commercial State Sponsored Bodies

and the final report in pdf format Commission on Public Service Pensions Final Report 2000 pdf format

Some people might find the paragraph on development of public service superannuation arrangements since the 1800s to be interesting.



Re: Superannuation

Thanks to Protocol for a clear explanation.

P notes that those with less than 40 years service need AVCs in order to bring their retirement income up to 50% of their pre-retirement earnings.

There is another route which ought to be considered in such circumstances - notional service. A further deduction (on a percentage basis) buys the entitlement to extra years, which have not in fact been worked, being pensionable. The size of the percentage deduction per year of notional service to be purchased is inversely proportional to the number of years to be worked before the chosen retirement date (which can be age 60 or 65).

The key advantage of notional service over AVC appears to be that the pensioner will receive increases in line with his/her equivalent grade. This is clearly of increasing value the longer you live and the better the wage deals negotiated by the public service unions.

The key advantage of AVCs is that, provided you don't buy an annuity with the pot you build up, you will have something to leave your heirs and successors.

So which to choose? It appears to me impossible to compare the two. The assumed rate of growth of the AVC fund and changes in annuity rates are critical but so are public service pay increases between now and death and how long you live after retirement. In other words, it's as much a matter of faith as of judgment.

The AVC providers have done a big snow job over the years in rubbishing notional service but I think the time may have come for a rethink.

Sim One


The Department of Finance has recently launched a new Civil Service Pensions website

This features a Pensions Modeller/Calculator and provides answers to Frequently Asked Questions (FAQs) about the Civil Service Pensions Schemes. There are three different Schemes covered (i) the Scheme for established civil servants appointed on or before 6 April 1995 who pay Class B1 or modified PRSI (ii) the Scheme for established civil servants appointed after 6 April 1995 who pay a personal pension contribution and who are liable for Class A PRSI and (iii) the Scheme for Non Established State Employees.

The Pensions Modeller is a self service facility, which allows you to get an on-line estimate of your projected retirement pension and certain other pension benefits. It will also allow you to model various ‘what-if’ scenarios and assess your potential benefits under the Actuarially Reduced Early Retirement Option.

When using this Modeller you should note that deductions should be made from overall service for periods of unpaid leave which are not reckonable for pension purposes e.g. career breaks, term time, parental leave, unpaid post maternity leave, carers leave and periods while on pension rate of pay.

Hope this helps



Re: Superannuation

Thanks Sim One, The FAQ's on that site are quite good.

I found the following pensions glossary in the pensions report 2000 mentioned above.

The main sources used for the pension related definitions below are The Pensions Board, Trustee Handbook ( 1998 ) , Finucane K. and Buggy, B., Irish Pensions Law and Practice ( 1996 ) , and Kenny,P., Understanding Pensions: The Friendly Guide to Pension Schemes ( 1994) .

Abatement The practice of reducing the rate of occupational pension to take account of salary payable on employment subsequent to retirement, or other occupational or state pension entitlements.

Accruing Pension Cost Represents the cost to be met at some future date of the pension benefits earned by the employees during the period of account.

Accrued Pension Liabilities The present value of all pension liabilities accrued to a specific date using the generally accepted principle that pension benefits should accrue over the period of employment or scheme membership giving rise to these benefits.

Accrual Rate The rate at which rights build up for each year of pensionable service in a defined benefit scheme, e.g. 1/80th and 3/80ths for pension and lump sum respectively in the public service.

Accrual Accounting Method of accounting which records expenditure as it is incurred (as opposed to when it is paid) and income as it is earned (as opposed to when it is received).

Actuarial Assumptions In a defined benefit scheme, assumptions such as those relating to investment return, price inflation, salary increases, mortality and morbidity, which the actuary employs in carrying out an actuarial valuation or other actuarial calculation.

Actuarially Reduced Pension A provision which enables pension and lump sum to be paid earlier than normal retirement age. Benefits are reduced because (i) fewer contributions have been paid and those which have been paid have been invested for a shorter period and (ii) the payment of the pension starts earlier, the average expectation of life is longer, leading to a longer period of payment.

Actuarial Valuation/Review An investigation by an actuary into the ability of a pension scheme to meet its pension promise. This has two purposes. Firstly, the actuary will calculate a recommended contribution rate which will allow the scheme to meet its future liabilities. Secondly, it is needed so that the actuary can establish the ability of the existing assets of the fund to meet its accrued benefits and complete an actuarial funding certificate. In unfunded public service schemes, an actuarial review focuses primarily on cashflow projections, i.e. an estimate of pensions outgo and contribution income for future years on the basis of actuarial assumptions.

Added Years See Notional Added Years.

Additional Voluntary Contributions The extra contributions which an occupational pension Contributions (AVCs) scheme member can decide to make to an external financial institution, with the aim of increasing his or her retirement and/or death benefits. AVCs are often provided for in a separate scheme from the main pension scheme.

Annuity Series of payments made at specified intervals for life, for a stated period of time, or until a specified event occurs; it is usually secured by the payment of a single premium to an insurance company.

Appropriation Account An end of year account of a department’s spending of the moneys voted by the Da´il, which compares the Supply Estimate (down to subhead level) with actual payments made and receipts brought to account and explains any substantial differences.

Atypical Employment Employment other than on a full-time permanent basis, i.e. part-time, temporary, contract or seasonal employment. Bridge Jobs Part-time or temporary employment that create a more gradual transition from full-time work to retirement.

Cash Accounting The primary system of government accounting which aims to record cash receipts and cash payments actually received and paid during the period of account. This is the alternative to an accruals system of accounting.

Commutation The replacement of a series of future pension payments by an immediate lump sum. The exchange of pension for immediate cash is regulated by the Revenue Commissioners.

Conciliation and Arbitration Conciliation and Arbitration schemes are agreed between Schemes management and unions for the purpose of dealing with claims and proposals relating to the salaries and other emoluments and the conditions of service of employees.

Constant Price Terms In the actuarial review of public service pensions presented in this Report, benefit outgo and contribution income projections have been prepared in constant (1997) prices. This means that any trends in the projections exclude the impact of future price inflation.

Contributory Scheme A pension scheme which requires contributions from active members.

Coordination Term sometimes used in place of integration in public service pension schemes; see Integration.

Deferred Benefits Term sometimes used in place of preserved benefits; seePreserved Benefits.

Defined Benefit Scheme A scheme in which the pension and other benefits which will be paid to the member and/or the member’s dependants are clearly stated or defined in the scheme rules. Where the benefits are based on salary at retirement, it is known as a Final Salary Scheme.

Defined Conntribution Scheme Also known as a Money Purchase Scheme. A scheme where the rate of contribution (employer and, if contributory, member) is defined and where the member’s pension is determined solely by reference to the contributions paid into the scheme by or on behalf of the member and the investment return earned on those contributions.

Dependants’ Benefits Benefits provided to the dependants of a pension scheme member in case of death while in employment or death after retirement. In the public service, dependants’ pensions are usually provided under separate schemes to the main pension schemes, known as spouses’ and children’s contributory pension schemes. In the case of death-in-service, a death gratuity is payable under the main pension schemes.

Disclosure of Information Regulations issued under the Pensions Act, 1990 requiring the Regulations disclosure of specified information about pension schemes and their benefits to interested parties.

Discount rate For funded pension schemes, the discount rate is the expected future rate of investment return that will be achieved on the pension scheme’s assets.

Early Leaver A person who leaves employment before retirement age. An early leaver having more than five years’ service is usually entitled to preserved benefits .

Early Retirement The retirement of a member with immediate retirement benefit before normal pensionable age. The benefit may be reduced because of early payment. See also Actuarially Reduced Pensions and Ill Health Early Retirement.

Emoluments/Allowances Benefits in cash or in kind which are additional to basic salary, e.g. allowances for the conditions under which work is done such as shift premia or higher duties. Employee Contributions Contributions made by an employee under a contributory pension scheme.

Established Civil Servants Civil servants recruited following the holding of a competition by the Civil Service Commission. They are permanent employees and their employment can only be terminated by Government.

Fast Accrual See Special Terms.

Final Remuneration See Pensionable Remuneration.

Final Salary Scheme See Defined Benefit Scheme.

Funding The provision in advance for future pension liabilities by setting aside money in a trust, which is separate from the employer’s business, to finance the payment of benefits when they arise.

Hybrid Scheme A scheme which combines the features of two or more pension structures. For example, the scheme might provide for some benefits to be calculated on a defined benefit basis and the balance on a defined contribution basis.

Ill Health Early Retirement Retirement on medical grounds before normal pensionable age. The benefit payable in these circumstances may be enhanced. In the public service, the enhancement consists of an award of notional service of up to 10 years (usually, six and two-thirds years), calculated by reference to the length of actual service given and potential service to retirement.

Integration The system of taking into account all or part of the benefits payable by the State under the Social Insurance system. The most common method of operating an integrated pension scheme is by salary offset — in public service schemes, the deduction of a Social Insurance offset of twice the rate of OACP is done before calculating pension benefits.

Life Expectancy The average period that a person at a specific age, in a known state of health, may be expected to live, derived from statistics for the population at large. Of particular relevance in the actuarial review of pension schemes.

Marriage Gratuity Gratuity awarded in lieu of any other pension benefit to a public servant who resigns on, shortly before, or within two years after the date of marriage, providing he or she was appointed from a competition advertised prior to 1 February 1974.

Model Schemes Issued by the Department of Finance as a basis for drawing up pension schemes and scheme amendments by public service bodies and state companies so as to conform with the Civil Service Pension Scheme. Modified PRSI Class Special lower rate of PRSI applicable to the majority of public servants who as a result have limited Social Insurance cover and are not entitled to Social Insurance pensions. With effect from 6 April 1995, newly appointed public servants are in full PRSI class and are entitled to the full range of Social Insurance benefits.

Money Purchase Scheme See Defined Contribution Scheme.

National Pensions Policy The objective of NPPI, which was jointly sponsored by the Initiative (NPPI) Pensions Board and the Department of Social, Community and Family Affairs, was to facilitate national debate on how to achieve a fully developed national pension system and to formulate a strategy and make recommendations for actions needed to achieve this system. The Pensions Board report on the Initiative, Securing Retirement Income, was published in May 1998.

Net Remuneration Under public service schemes, this is defined as current salary plus pensionable emoluments less twice the maximum rate of Social Insurance OACP to a single person with no dependants. Part of employee contributions are calculated on net remuneration.

Net Pensionable Pensionable salary plus pensionable emoluments at date of Remuneration retirement less twice the maximum rate of Social Insurance OACP payable to a single person with no dependants. Net pensionable remuneration is used in the calculation of retirement pension under public service schemes. It is adjusted upwards for the calculation of spouses’ and children’s pensions by deducting once rather than twice the maximum rate of OACP.

New Entrant Contribution Rate In the context of unfunded public service schemes, the percentage of salary plus pensionable allowances which it is estimated (based on actuarial assumptions) would be required to fund the existing pension benefits for typical new entrants to the public service. The rate reflects the terms and conditions applying to the new entrant and is inclusive of member contributions.

Nomination The naming by a member of a person or persons to whom he or she wishes any death benefit to be paid in the event of his or her death. This will not usually be binding on the trustees. Also called a Wishes Letter.

Non-Contributory Scheme A scheme which does not require contributions from active members, i.e. the employer is liable for all the contributions needed to support the scheme.

Non-established Civil Servants Civil servants employed in a whole-time capacity by a Government Department or office who are not established civil servants. They are often employed in a situation where the long-term necessity of a particular position is not obvious, or where it is deemed desirable that personnel should undergo a trial period in a non-established capacity before being appointed in an established capacity. Non-established civil servants may be dismissed by the Minister of the relevant department.

Normal Retirement Age The age by reference to which the normal retirement date is determined.

Notional Added Years Any years of pensionable service added to actual service for the purpose of calculating pension scheme benefits. Normally used to describe the additional years of pensionable service awarded to professional, technical or specialist public servants for pre-recruitment qualifications and/or experience. (See also Purchase of Notional Service and Ill Health Early Retirement.)

Notional Fund Mechanism sometimes used by unfunded schemes to facilitate the charging of public service employers for the accruing pension costs of their employees.

Occupational Pension Scheme This is formally defined in the Pensions Act as a scheme which is approved under the 1972 Finance Act, or the 1976 Income Tax Act, or whose approval has been applied for to the Revenue Commissioners. The term Occupational Pension Scheme is generally used to distinguish job-related pension schemes from State Social Welfare Schemes.

Officer/Non-Officer The terms officer and non-officer have particular legal implications in the local authority structure — the two classes of employees are broadly equivalent to established and nonestablished civil servants.

Old Age (Contributory) A pension payable from age 66 under the Social Insurance Pension (OACP) system as a result of the payment of the appropriate level and number of PRSI contributions.

Pay Parity The principle generally followed in public service schemes where pensions are increased in line with the pay of serving public servants.

Pay-as-you-go The method of financing the cost of scheme benefits out of the employer’s cash flow, where no advance funding of benefits is made. This is often the approach adopted to finance occupational pension schemes run by the State.

PCW Restructuring Agreements made under the local bargaining element of the Agreements Programme for Competitiveness and Work.

Pension Scheme Structure The structure of benefits and contributions under an occupational pension scheme — see Defined Benefit, Defined Contribution, and Hybrid Scheme.

Pension Terms The rules and conditions which govern the payment of pensions under a pension scheme.

Pensionable Emoluments In public service schemes, Pensionable Emoluments include (Allowances) allowances in the nature of pay, but do not include overtime, gratuities, or expense payments. Pensionable Emoluments are averaged over the final three years of service.

Pensionable Remuneration The aggregate of pensionable salary and pensionable emoluments.

Pensionable Salary In public service schemes, the salary payable on the last day of pensionable service, except in case of promotion in the final three years of service, in which case salary is averaged over the final three years of service.

Pensionable Service The period of service which is taken into account for the purpose of calculating pension benefits. In the public service, pensionable service may include service purchased under the purchase scheme, notional added years, and service transferred from other public service employments, etc.

Pensions Act The Pensions Act, 1990, as amended, is the principal legislation under which occupational pension schemes are regulated.

Pensions Board The statutory body established under the Pensions Act to monitor and supervise the operation of the Pensions Act and pension developments generally.

Preservation The granting by a scheme of preserved benefits, in particular, in accordance with minimum requirements specified by the Pensions Act. Preservation has been available in public service schemes since the mid 1970s.

Preserved Benefits Benefits payable at a future date to or in respect of a member who has left the scheme prior to normal retirement age. Where preservation applies under a public service scheme, all pensionable service is covered. Certain restrictions apply in the case of schemes covered by the Pensions Act.

Personal Retirement Savings PRSAs, as recommended under the NPPI, are to be a new Account (PRSA) type of pension vehicle aimed at meeting the needs of a flexible labour market. A PRSA will be an investment account owned by an individual which will hold units in investment funds. It will be managed by an approved PRSA provider and may be transferred from one provider to another. It is expected that PRSAs will be available as a pension option from 2001.

Pro Rata Pension Benefits A formula which produces a pension for a part-time employee proportionate to the hours worked of a full-time employee, e.g. a part-time employee working half the hours of a full-time employee will accrue a pension entitlement which bears the same relationship to that of a full-time employee as the number of hours worked, i.e. one-half.

Public Service The public service comprises the civil service, the local authorities, the health services, the Defence Forces, the Garda Sı ´ocha´na, the education sector and non-commercial state sponsored bodies.

Public Sector The public service plus the commercial state companies.

Purchase of Notional Service Self financing scheme which enables a public servant, subject to certain conditions, to purchase additional years of service by reference to a shortfall in maximum pensionable service of 40 years at retirement age.

Remuneration The aggregate of salary plus emoluments.

Restructuring Agreements See PCW Restructuring Agreements.

Retained Benefits A term used by the Revenue Commissioners to denote retirement or death benefits in respect of an employee’s earlier service with a former employer or an earlier period of self-employment. These may have to be taken into account in computing maximum approvable benefits.

Revenue Rules/Limits The benefit and contribution structure to be complied with for the purposes of securing approval of the pension scheme by the Revenue Commissioners under the Finance Act, 1972. (A summary of the principal requirements is set out in Appendix 12.1.)

Scheme for Public Employees’ Single AVC-type scheme recommended for the public service Additional Savings (SPEARS) as a whole (see Chapter 19). Social Insurance/ State system which provides an income support system to Social Security System cover insured workers for a variety of life contingencies for which they would otherwise find it difficult, if not impossible, to provide on an individual basis. Entitlement to such benefits is derived by virtue of payment of an appropriate number of PRSI contributions.

Social Welfare Offset See Integration.

Social Welfare System A term used to describe the overall welfare system comprising Social Insurance, Social Assistance and universal payments such as child benefit.

Special Terms In a number of areas in the public service enhanced pension terms apply for operational reasons. In most cases, this involves fast accrual, i.e. doubling years of service in excess of 20 thus enabling a person to qualify for maximum pension entitlement after 30 years. A lower maximum retirement age than the norm usually applies.

Spouses’ and Children’s See Dependant’s Benefits. Pension Scheme

Standard Pension Terms Used in a public service context to denote the pension terms applied to the generality of public servants (i.e. annual accrual rates of 1/80th and 3/80ths for pension and lump sum, retirement at age 60-65, etc.).

Strategic Management A process of structural reform of the public services Initiative commenced in February 1994 which addresses three key areas: the contribution public bodies can make to national development, the development of a customer focus for the public service, and the effective use of resources.

Supplementary Pension Under public service schemes, a supplementary pension is payable in respect of periods during which the pensioner is not employed in any capacity which involves a Social Insurance contribution and, due to causes outside his or her control, fails to qualify for Social Insurance benefit or qualifies for benefit less than the maximum personal rate of OACP.

Transfer of Service The transfer of benefit entitlements from one occupational scheme to another following a change in employment.

Transfer Payment A payment from one pension scheme to another, or to an insurance company to purchase a buy-out bond, in lieu of the benefits which have accrued to the member under the scheme. In this form, it specifically refers to transfers made under the preservation requirements of the Pensions Act.

An individual or company which alone or jointly becomes the legal owner of property to be administered for the benefit of someone else (the beneficiaries), in accordance with the provisions of the document creating the trust and the provisions of trust law generally and the Pensions Act. Under the Pensions Act the term trustees of a pension scheme has a broader meaning which enables administrators of scheme not established under trust (such as public service schemes) to be covered within the definition.

Unfunded Scheme An arrangement or benefit where no advance financial provision has been made (see Pay-as-you-go).

Unsocial Hours Allowances Payments made to certain public service groups as an addition to salary in respect of attendance at night, weekends, and public holidays.

Vesting Date In the context of a pension fund, the vesting date marks the commencement of the pension fund’s liability to meet the future cost of the pension benefits which are earned or accrued after the commencement date.

Vesting Period This is the period of time a person must be in membership of a pension scheme before being eligible to qualify for pension benefits. In the public service, the vesting period is five years.

Voluntary Early Retirement An arrangement sometimes offered to allow employees (VER) volunteer to retire earlier than the normal age of retirement, usually without actuarial reduction of benefits. Sometimes enhancement of accrued pension entitlements is offered. VER schemes have been used in the public service as a means of reducing staff numbers and to facilitate restructuring. See also Early Retirement.

Vote A coherent area of government expenditure which is the responsibility of a single Government Department or office which is in turn accountable to the Da´il for the expenditure shown.


Frequent Poster
Re: Superannuation: Civil and Public Service Pensions

just to clarify...public servants recruited today pay 6.5% of their gross salary in pension contributions right?????


Re: Superannuation: Civil and Public Service Pensions

Correct. For quite some time, now (since 1991 or so, afair?)