Not so golden public sector pension?

goingforgold said:

Hi Gerry, the above is a little misleading as any public sector employee employed after 1995 is going to have the state contributory old age pension included in their total pension allowance.

So an employee on 25k per annum will receive 12.5k on retirement which will mostly be made up of state pension (12k).

A private sector employee in your example above will receive 12k from state and 4.5k from private pension, so somewhat better off.

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Point taken.

But for the next couple of decades will the average Public Servant not be better off than the average paye person, rtic.

(I am not getting at public servants , just asking,since there is a notion that public servants have the gold !)

Hi Gerry , whether Public Sector workers were employed post or pre 1995 they will not receive either the non contributory or contributory State pension in addition to their occupational pension.

Takes rather the glitter off that gold , doesn't it ?

Deiseblue said:

Hi Gerry , whether Public Sector workers were employed post or pre 1995 they will not receive either the non contributory or contributory State pension in addition to their occupational pension.

Takes rather the glitter off that gold , doesn't it ?

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Interesting, Does this also apply when one's PRSI A class contributions were generate from private sector employment?

S

Deiseblue said:

Hi Gerry , whether Public Sector workers were employed post or pre 1995 they will not receive either the non contributory or contributory State pension in addition to their occupational pension.

Takes rather the glitter off that gold , doesn't it ?

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Note that public servants hired since April 1995 do pay full-rate PRSI, and so will receive the State Pension.

True , but in the case of post '95 workers that pension is integrated with their occupational pension to ensure that post & pre 95 workers are treated equally.
A pre 95 worker on €50,000 can expect a maximum pension of €25,000 per annum & a post 95 worker on the same salary can expect the same made up of a contributory pension of €11976 & an occupational pension of €13,024 .
As a retired Bank of Ireland pensioner not only do I receive an occupational pension but if I hopefully live long enough I will receive the State OAP - no integration there !

Public servants now pay full-rate prsi and are entitled to State Contributory Pension, that is fair.
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The question then is this.
Do Public Servants now pay enough in their contributions to cover their pensions from work?

eg @ 66 it takes circa a pot of 100,000 to get a pension of 4,000.
So if anyone ,be they public/or private to get an annual pension of 12,000 the pot needs to be north of 300,000.

If it is a case that the pot is less than 300,000 ,yet anyone gets an annual pension of 12,000 ,it means someone else is paying for it.
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Maybe as this pension time-bomb develops we will reduce State pension for those with high private pensions !

Gerry Canning said:

Public servants now pay full-rate prsi and are entitled to State Contributory Pension, that is fair.
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This has been the case for more than 20 years. This statement makes it sound like it happened recently!

Gianni,

I don,t care if they started 40 years ago .They pay = they are entitled.

Deiseblue said:

As a retired Bank of Ireland pensioner not only do I receive an occupational pension but if I hopefully live long enough I will receive the State OAP - no integration there !

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What was the last year that new entrants to BoI joined a defined benefit non-integrated scheme? Most large companies have had integrated schemes for decades.

And BoI is hardly a poster child for comparing to the public sector - their defined benefit scheme closed to new entrants in 2006 and the overall deficit is over €1B. With a lot more employees and no funding, that gives an indication of the massive problems that will face the public sector in the continued provision of a defined benefit scheme (and indeed the state generally in providing a high contributory/non-contributory pension for not much in the way of contributions).

From the postings;
As things stand , could it be said.
1. Retired now = Golden Pension.
2. Retiring in 10 years = Silver Pension.
3. Retiring in 30 years = Bronze Pension.
4. Retiring in 40 years = No Pension.