Preserved Benefit & future receipt or not of Old Age Pension

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letitroll

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Question for the forum around Preserved Benefit of Public Service pensions and their interaction with the state old age pension

I previously worked in the HSE and was a new entrant post 2004 public servant where my final pension is mixture of my final salary integrated with the state old age pension (OAP). I left in 2014 with 10 years service (round figures here for ease of discussion). My salary was 50,000euro.

If I completed 40 years service this would theoretically mean the following:

Lump Sum - 1.5 salary x 50,000e = 75,000euro tax free
Pension - 50% of final salary = 25,000 euro (12,391e of which would come from state OAP (238 p/w) with HSE paying the balance to get me to 25,000euro total integrated pension payments)

However I left a quarter of my way through my tenure, my preserved benefit is now 25% of the above, 18,750euro lump sum vs. 75k lump sum and 6,250 euro pension vs. 25,000.

Two questions -

  1. What way will my 6,250 pension now be integrated with state OAP given that it now falls below 12,391per anum OAP?
  2. I've currently left Ireland and its possible that I won't return. In this instance then I'll lack the needed PRSI contributions to qualify for the OAP at 65, does the HSE then become fully liable to pay me 6,250 per year as integrating it with my nonexistent entitlement for state old age pension means they owe me this amount in full?
 
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Current qualification age for State contributory pension is 66. The HSE will not be liable for your state pension as your contributions were calculated net of the state pension.
 
letitroll said:
Question for the forum around Preserved Benefit of Public Service pensions and their interaction with the state old age pension


Two questions -

  1. What way will my 6,250 pension now be integrated with state OAP given that it now falls below 12,391per anum OAP?
  2. I've currently left Ireland and its possible that I won't return. In this instance then I'll lack the needed PRSI contributions to qualify for the OAP at 65, does the HSE then become fully liable to pay me 6,250 per year as integrating it with my nonexistent entitlement for state old age pension means they owe me this amount in full?
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Letitroll, Based on your figures above, at 65 you should qualify for an occupational pension from the HSE of approximately €3100. Your question then is "What about the the other element of the Coordinated Pension for which you contributed through your PRSI (ie, State Pension)?" As you say, you will not qualify for a full State Pension. But you may well qualify for a partial pension based on your contributions. For example, a person with a yearly average of at least 10 contributions currently (between 10-14) qualifies for a State Pension of €4950. This current system of calculating state pension eligibility is supposed to change - but not in a way that, on the face of it, would disqualify you for a partial pension. These figures combined surpass your €6250.

Therefore, your first port of call will be the partial state pension plus your HSE occupational pension. However, The State Pension is currently not payable until 66 and this will increase to 67 in 2021 and 68 in 2028. In this interim period, if you do not qualify for any other Welfare payment, you may apply to the HSE for a supplementary pension to make up the difference between your occupational pension and €6250 (as per your own calculations). There are qualifying conditions you must satisfy for this. If you are granted the Supplementary and should you not subsequently qualify for any State Pension at 67/68 you can apply to maintain this supplementary pension.

I note you are living abroad and may well stay there. I don't know anything about this but but I understand that there may be a way to combine your Irish Social Insurance Record with that of the country you are in now for Pension purposes : ( http://www.citizensinformation.ie/e...cial_insurance_contributions_from_abroad.html ). In this event your combined Welfare Pension should count towards your €6250 figure (ie no eligibilityfor supplementary from HSE, if the combined total of your Occupational Pension and combined, or Irish only, Welfare Pension equals or exceeds €6250).
 
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Pension will be = (1/80)(years of reckonable service)(net pensionsable remuneration)

The net pensionable pay is [final salary less 2* CSP]

So that's 50,000 - 2(52)(238.30) = 50,000-24783.20 = 25,216.80

Pension = (10/80)(25216.8) = 3,152.10 pa
 
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