It sound to me that it is similar to a career averaged earnings plan, the superannuation scheme is based on the 80ths rule. What this means previously is that for every year of service your a member of the pension scheme you would get 1/80th of your final salary to the max of 40 years. This is 40/80 or equivalent to 1/2 if you did max service. the benefit of this is that if you based your payments on varying salaries over the years but received your pension on final salary ie 1/2 of your final salary for life. Now it looks like each 1/80th is added individually at retirement. say year one you "bank" 1/80th @ 30k year 2 1/80th @ 31k and so forth so this will be increased @ cpi rates in retirement. It stops a public servant jumping massively in salary just before retirement so they benefit from a higher pension. it is also cheaper as a pay out in retirement. Does this make sense to you?
It's no longer 1/80 for every year, it's 1/160?
The PS formula is a pension up to a max of 40/80ths. Each years service is 1/80th.
The accrual rate up to 45k is calculated to take into account entitlement of the State Contributory Pension (X 3.74) which is integrated into the Public Sector pension scheme at the final calculation.
If you click on the link in your post above, select FAQs and see page 9, it says no limit bar age.Slim, are you sure? I am not too familiar with the new pension - but in looking at it I came across this:
http://www.per.gov.ie/en/recent-changes-affecting-existing-public-service-pensions/
"the introduction with effect from 28 July 2012 of a 40-year limit on the total service which can be counted towards pension where a person has been a member of more than one existing public service pension scheme,"
If you click on the link in your post above, select FAQs and see page 9, it says no limit bar age.
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