Meaning of pension term.

[pingin]

Got my Statement of Early Retirement Benefits from my employer the other day.

All my details and payments are listed. One of the listed items is ‘3 1/3 State Pension’. Can someone tell me what this means?

Many thanks.

 

[Early Riser]

One of the listed items is ‘3 1/3 State Pension’. Can someone tell me what this means

Three and a third times the current full contributory state pension rate, ie, €12,912 * 3.33333.........

 

[pingin]

Pardon my complete ignorance but does that mean I’d get a pension of almost €12,900 per annum?

 

[Protocol]

3.33 times the STC is used in the formula to calculate your PS pension.

See Q9 here:

http://www.cspensions.gov.ie/faq3.pdf

 

[pingin]

3.33 times the STC is used in the formula to calculate your PS pension.

See Q9 here:

http://www.cspensions.gov.ie/faq3.pdf

Great. Thank you very much for that. I find the whole business very complicated and hard to understand.

 

[Early Riser]

3 1/3 times the current state pension is €43,040, (€43k).

You get 1/200 of your pensionable salary up to this amount for each year of service.
For any salary above this amount you get 1/80 for each year of service.

Say your pensionable salary is €50k and you have 20 years service at normal retirement age.

You get 1/200 of €43k multiplied by 20 = €4300.
Plus you get 1/80 of the €7k above this amount * 20 = €1750.

Your annual occupational pension would be 1750 + 4300 = €6050.

 

[pingin]

3 1/3 times the current state pension is €43,040, (€43k).

You get 1/200 of your pensionable salary up to this amount for each year of service.
For any salary above this amount you get 1/80 for each year of service.

Say your pensionable salary is €50k and you have 20 years service at normal retirement age.

You get 1/200 of €43k multiplied by 20 = €4300.
Plus you get 1/80 of the €7k above this amount * 20 = €1750.

Your annual occupational pension would be 1750 + 4300 = €6050.

That makes it clear. Maths is not one of my strengths! Thank you.