Part time work - impact on pension HSE

G

Gordanus

Registered User
Messages
686
Just wondering as have been working part time for last 25 years due to having children.

I know this impacts on my length of service, and that's fine.

I am wondering however whether my pension is worked out on the salary I actually earned, or the full-time pay.
 
Hi as far as I know, having checked this out myself it's just the time that's affected. Say you worked 10 yrs full time followed by 20yrs half time (job sharing for example) and then your final 10 yrs full time you would be credited with 30 yes employment.
When calculating your pension the calculation is based on your finishing salary and years of service. Whether you're part time or full time your pension us calculated on the full rate of pay for your grade but where you lose out is on the years service.
Example; 40yrs full service with a final salary of say €60k, lump sum is calculated by years x salary x (3/80) so this would be €90000. For an employee that had taken leave as described above it would be €67,500. The annual pension is calculated slightly different as they take jnto account the state pension but I think (and I'm open to correction) that it's slightly less than one third of the lump sum per annum.
You have the option yo increase your lump sum payment with AVC's to account for the loss but are subject to 1.5 times final salary amount I think.
Hope this explains it
 
Mam1996 said:
Hi as far as I know, having checked this out myself it's just the time that's affected. Say you worked 10 yrs full time followed by 20yrs half time (job sharing for example) and then your final 10 yrs full time you would be credited with 30 yes employment.
When calculating your pension the calculation is based on your finishing salary and years of service. Whether you're part time or full time your pension us calculated on the full rate of pay for your grade but where you lose out is on the years service.
Example; 40yrs full service with a final salary of say €60k, lump sum is calculated by years x salary x (3/80) so this would be €90000. For an employee that had taken leave as described above it would be €67,500. The annual pension is calculated slightly different as they take jnto account the state pension but I think (and I'm open to correction) that it's slightly less than one third of the lump sum per annum.
You have the option yo increase your lump sum payment with AVC's to account for the loss but are subject to 1.5 times final salary amount I think.
Hope this explains it
Click to expand...
That's useful, thanks very much. Yes the question was really whether the pension is calculated on the full pay + actual 50% years of service, or on the 50% salary + actual 50% years of service (for someone working half time). Thanks, Mam! :)
 
You must log in or register to reply here.
Back
Top