Major changes to rates for early retirement and buying service from 2027

[TheJackal]

Buying Service

Rates from 1 Jan 2027
Circular 26/2026 Purchase of Notional Service Scheme (Revised Rates and Scope)

https://assets.publicservicepensions.gov.ie/static/documents/DPER_Circular_26_of_2026_-_Purchase_of_Notional_Service_Scheme_-_Revised_Rates_3sOjHki.pdf

Letter to HR Managers – Purchase of Notional Service (Revised Rates and Scope)

https://assets.publicservicepensions.gov.ie/static/documents/Letter_to_HR_Managers_Purchase_of_Notional_Service_Revised_Rates_and_Scope-_FINAL.pdf

Supporting information to the circular can be found at
https://www.publicservicepensions.gov.ie/en/topic/purchase-of-notional-service/.

Rates until 31 Dec 2026
Circular 4/2006: Purchase of notional service for superannuation purposes by Established Civil Servants and by Non-Established State Employees.

https://assets.gov.ie/static/documents/042006-6b669da3-2143-4193-85f0-39c4e5431a98.pdf

Summary
First revision in rates in 20 years.
Cost of buying service will increase in all actuarial tables from 1 Jan 2027.
However, if you get an arrangement signed off by 31 Dec 2026 you will continue to use the old, better rates into the future.
So if thinking about buying years of service, do it now and save 000s.

Cost Neutral Early Retirement

Rates from 1 Jan 2027
Circular 26/2026 Purchase of Notional Service Scheme (Revised Rates and Scope)

https://assets.publicservicepensions.gov.ie/static/documents/Letter_to_HR_Managers_-_Revised_actuarial_reduction_factors_for_cost_neutral_e_6GMuZI5.pdf

Rates until 31 Dec 2026
Circular 10/2005: Public Service Pension Reform: Introduction of cost neutralearly retirement

https://assets.gov.ie/static/documents/102005-643f2ae0-1cbe-4209-bde2-5c4be5f5d14f.pdf

Summary
First revision in rates in 20 years.
Cost of retiring early will decrease in all actuarial tables from 1 Jan 2027.
So if thinking about retiring early, hold off until 2027 and save 000s.

Rates for Pre 2003 entrants who can retire at 60 and early from 50-59

Rates for Post 2003 entrants who can retire at 65 and early from 55-64

 

[DingDing]

NOTE, I collated this info using Gemini,


For anyone in the pre-existing public service pension schemes considering buying back missing years via the Purchase of Notional Service (PNS) scheme, DPER has recently issued Circular 26/2026, which substantially revises the purchase rates upwards to ensure the scheme remains self-financing. The new rates take effect for any Certified Purchase Agreements (CPAs) commencing on or after 1 January 2027.

If you are thinking about purchasing notional service by lump sum (specifically targeting Normal Retirement Age 60 for established civil/public servants), there is a significant cost jump coming.

Below is an illustrative breakdown comparing the old rates under Circular 04/2006 (Table 6) with the new rates under Circular 26/2026 (Table 6) for members of the Spouses' and Children's (S&C) Scheme.

Example Comparison Table: Lump Sum Purchase Rates (Reference Age 60)​

Rates are expressed as a percentage of gross/pensionable salary required to purchase 1 year of notional service.

1. Integrated / Class A PRSI (PPC Scale)​

Age Next Birthday	Circ 04/2006 Rate PDF	Circ 26/2026 Rate PDF	Absolute Increase (% pts)	Relative % Increase
25	33.5%	43.90%	+10.40%	+31.0%
30	34.7%	44.18%	+9.48%	+27.3%
35	34.2%	42.44%	+8.24%	+24.1%
40	32.1%	38.46%	+6.36%	+19.8%
45	28.4%	32.55%	+4.15%	+14.6%
50	25.3%	28.89%	+3.59%	+14.2%
55	26.6%	29.29%	+2.69%	+10.1%
58	25.6%	29.12%	+3.52%	+13.8%
60	26.8%	29.34%	+2.54%	+9.5%

​

 

[Derek1001]

All very interesting. Find it hard to know why the government would be making pensions more generous for those who retire early (albeit not a huge increase)...but looks good to me as I would hope to avail of CNER in a few years.

 

[DingDing]

Continuation of previous post. It wouldn't all fit on the one post.

2. Non-Integrated / Modified PRSI (Class B/D)​

Age Next Birthday	Circ 04/2006 Rate PDF	Circ 26/2026 Rate PDF	Absolute Increase (% pts)	Relative % Increase
25	41.4%	56.59%	+15.19%	+36.7%
30	43.4%	57.84%	+14.44%	+33.3%
35	43.8%	57.14%	+13.34%	+30.5%
40	42.7%	54.27%	+11.57%	+27.1%
45	40.2%	49.57%	+9.37%	+23.3%
50	36.5%	43.81%	+7.31%	+20.0%
55	32.6%	38.08%	+5.48%	+16.8%
58	30.5%	34.73%	+4.23%	+13.9%
60	29.2%	32.83%	+3.63%	+12.4%

Key Takeaways:​

1. Younger entrants are hit hardest in relative terms: For someone in their late 20s/early 30s, the cost per year of service has gone up by 25% to over 35% in relative terms.
   
   
2. Older cohorts (50s): While the percentage increase is smaller relative to base rates (around 10% to 15%), the absolute lump sum cost still rises by €2,500 to €3,600+ per €100k of salary for every single year purchased.
   
   
3. Transitional Window:Under Circular 26/2026, you can still avail of the old Circular 04/2006 rates if:
   • You have a signed CPA in place with the NSSO/HR on or before 31 December 2026, and
     
     
   • For lump sums, payment is confirmed by Local HR before 1 January 2027.

If you were sitting on the fence about purchasing notional service vs. funding an AVC/PRSA, it might be worth running the numbers before year-end to lock in the 2006 rates if notional service makes sense for your profile.

EDIT: Threre are another set of tables WRT normal retirement age of 65.