Qualify for both Public Service pension and State Retirement pension ?

C

CFC

Registered User
Messages
4
Hello Everybody

I joined the public service relatively late in working life and am currently making pension contributions to the LGSS scheme, in addition I make (expensive) contributions to ‘buy added years’. I also make Class A PRSI payments. Ideally, I’d be hoping to retire at 60 from the public service - with a pension commensurate with about 20 years of service (one quarter of final salary, plus lump sum).

Prior to working in the public service, I worked in the private sector and also made Class A PRSI contributions. Should I be able to retire from the public service at 60, I could (in theory anyway) return to work in the private sector, bolstering my total of ‘private sector’ Class A PRSI contributions. In total I would also expect to have about 20 years ‘private’ Class A contributions, excluding the time in the public sector.

I’m confused by the compatibility of the public sector and State pensions and the whole Class A thing. The purchase of added years is expensive and I don’t want to continue with it if there would be no real benefit.

My question is – under the current legislation - would I be entitled to the two (reduced) pensions – the public sector pension (say at 60) and the State transition/contributory pension (at 65/66) based on the two different sets of contributions ?

Thank you.
 
If you are in a scheme where the state pension is integrated with your public sector pension, then you will receive one amount which covers your entitlements from both schemes.
It will not differenciate between your contributions paid when you were in private sector vs public sector.

If you were to retire today from a salary of €50,000 with 20 years service, your pension would be €12,500. This would be made up of €11,975 state pension, and just €525 employer pension.
 
Thank you very much Berni.
I'm beginning to appreciate the implications of the integrated/co-ordinated system and it looks like the purchase of added years could be an expensive mistake.

I'll have to look into this further to try and do some numbers. Do you know of any specific circulars or texts that deal with this issue ?
 
Thanks again Berni.
Plenty of info available there including a 2005 circular which seems most relevant and a good starting point.
 
You must log in or register to reply here.
Back
Top