Local Government Officers 1956 Superannuation Scheme

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dalkey dragon

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I'm looking for help and guidance on this scheme please. I have been told that there will be a shortfall in my pension when I retire in 2 years time compared to someone who opted for an updated scheme over the years. Is this correct? I will have 40 years service and am currently earning 48,000 euro per annum.
 
dalkey dragon said:
I'm looking for help and guidance on this scheme please. I have been told that there will be a shortfall in my pension when I retire in 2 years time compared to someone who opted for an updated scheme over the years. Is this correct? I will have 40 years service and am currently earning 48,000 euro per annum.
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Under the 1956 Scheme, pension is calculated the same but lump sum is based on 1/30 of final salary x years of service, e.g.
1956 Scheme: salary of 48,000: 48,000/30X40 = €64,000
1977 & subsequent schemes: ((48,000/80)X3)X40 = €72,000

As you appear to have started work in 1977, I am surprsied you were not steered into the 1977 Scheme.
 
Slim said:
Under the 1956 Scheme, pension is calculated the same but lump sum is based on 1/30 of final salary x years of service, e.g.
1956 Scheme: salary of 48,000: 48,000/30X40 = €64,000
1977 & subsequent schemes: ((48,000/80)X3)X40 = €72,000

As you appear to have started work in 1977, I am surprsied you were not steered into the 1977 Scheme.
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Thanks for the clarification Slim. You are surprised i was not steered towards the 1977 scheme which makes me curious if you work or worked in the public sector yourself?
In all my years neither I or any of my friends and colleagues were ever given any guidance or advice - the odd memo but no help.
This is why a forum such as this is so helpful and it has answered many questions for us.
Keep up the good work !
 
Dalkey dragon.
You were probably issued something in very officialdom language by way of a memo some years back (perhaps).

Most people will glance over the first 3 lines and conclude .......this looks like this will cost me something,....... it doesn't interest me at the moment............, do I have to read these these 7 pages..... oh sure I'll deal with it later. So the documentation gets thrown aside.

I work in the HSE (HR not pensions) and the superannuation dept (now known as pensions management) still continue to speak/write in this type of way. It actually is a big of a bug bear of mine (has been for years, well before the 'all public servants have gold plated pensions') as pensions management justify employees shock (when they are 2-3 years from retirement) with a 'we issued you the documentation 22 years ago'.

To me it's like the ticking the 'I agree to the term and conditions' on a website which no one reads until....they are not happy with the goods ie: they are 2 - 3 years from retirement and are now not happy.

They don't and never did explain the pensions scheme in a meaningful way. In recent times this is becoming more of an issue as employees have been led to believe that a public service job guarantees them a 'gold plate pension'. It does not.

It was (and I mean was, as there is a whole new scheme now) a defined benefit scheme. This was and always was based on a set of rule based on years of service, the scheme you 'had' to sign up to etc.

I have a new staff member and she got a 'load of buff' which she threw aside. I have advised her to make an appointment with pensions management.

I'm pre 95 but will now be checking what actual scheme I am on but I assume my lump sump will 1/40 not 1/30.

So, if you are in the public/civil servant, just starting out or a few year in, look for an appointment with you local pensions management department. They may not be able to meet you next week but ask the when they can because this is important stuff.

Finally, I agree Slim does brilliant work here on this particular area as it's simply a nightmare of rules and more rule and very difficult to answer on a forum.
 
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Firstly, Dalkey Dragon and Becky - you are too kind! Google is my friend!

Second - Becky, you say the pension scheme 'was' defined benefit! I thought it still is?

At the time of the introduction of the 1977 Scheme, Widows and Orphans Scheme etc, there was much publicity and internal awareness programmes, although this may have differed from public sector employer to employer. Also, unions were active in advising their members on the pros and cons of the new schemes. Many men chose not to sign up for additional deductions(and men made up the majority), could not envision dying and believed the state would take care of their widows and children.

However, if your HR file does not show a form where you chose not to opt for the new scheme, you may have a case to appeal on the grounds that you were not given the opportunity to opt in.
 
Slim said:
Firstly, Dalkey Dragon and Becky - you are too kind! Google is my friend!

Second - Becky, you say the pension scheme 'was' defined benefit! I thought it still is?

At the time of the introduction of the 1977 Scheme, Widows and Orphans Scheme etc, there was much publicity and internal awareness programmes, although this may have differed from public sector employer to employer. Also, unions were active in advising their members on the pros and cons of the new schemes. Many men chose not to sign up for additional deductions(and men made up the majority), could not envision dying and believed the state would take care of their widows and children.

However, if your HR file does not show a form where you chose not to opt for the new scheme, you may have a case to appeal on the grounds that you were not given the opportunity to opt in.
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Yes Slim - it still is a defined benifit scheme. And Becky glad to hear I'm not the only one with this bug bear. I know when we were all young we let these matters drift and thought pensions were only for old people!
I now spend a lot of time pleading with my children and young colleagues to pay attention to these matters and they listen to me with a glazed expression.
Have made an appointment with my superannuation dept. but young man told me he is not long in that Dept. so here's hoping !
 
Slim said:
Firstly, Dalkey Dragon and Becky - you are too kind! Google is my friend!

Second - Becky, you say the pension scheme 'was' defined benefit! I thought it still is?

At the time of the introduction of the 1977 Scheme, Widows and Orphans Scheme etc, there was much publicity and internal awareness programmes, although this may have differed from public sector employer to employer. Also, unions were active in advising their members on the pros and cons of the new schemes. Many men chose not to sign up for additional deductions(and men made up the majority), could not envision dying and believed the state would take care of their widows and children.

However, if your HR file does not show a form where you chose not to opt for the new scheme, you may have a case to appeal on the grounds that you were not given the opportunity to opt in.
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Yes we are on a DB but new starters from 2013 onwards are on the Single Public Service Pension Scheme and this seems to be more like a DB scheme. Our local pensions department will not give sessions at induction about it as they have not been briefed adequately on it.
 
becky said:
Yes we are on a DB but new starters from 2013 onwards are on the Single Public Service Pension Scheme and this seems to be more like a DB scheme. Our local pensions department will not give sessions at induction about it as they have not been briefed adequately on it.
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The single scheme is still defined benefit, but it's a career average rather than final salary scheme
 
Thanks for the clarification pemtca. Apologies, I see I said DB when I meant DC.
 
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