Have a look at the Single Public Service Pension Scheme booklet from singlepensionscheme.gov.ie and in particular Page 32:Is there a relationship between the single public service pension scheme and the state contributory pension.
For example, an the annual pension under the Single scheme is 40K. If the contributory was 10K, do you receive 40 in total, with only 30K being paid from the single scheme.
What happens if the single scheme annual pension was on 5K. Do you only receive the 10K contributory pension.
Based on my understanding, you would use the approach on Page 16/17 to calculate both lump sum and pension benefits based on the "referable amounts" you have contributed while paying into the Single Scheme.Thanks for that.
I am thinking of a case where an individual joins the Single pension scheme late in life. Their annual single pension value is less then their contributory pension.
What happens then?
My understandin is that the Public Service coordinated pension doesn't favour employees who retire either on a low gross salary or have a limited number of years contribution, as their pension never gets above the contributory pension.
I think they will get something, per my example above, but it will be relatively modest over the CSP.Could it be they will not get any payment from the single pension, if their entitlement under that is less that what their contributory pension will be.
I think I understand this, it appears to make sense. My concern would be that having joined the PS late my entitlement from the Single Scheme will be less than the CSP.Have a look at the Single Public Service Pension Scheme booklet from singlepensionscheme.gov.ie and in particular Page 32:
"The Scheme takes account of the Contributory State Pension as part of the total pension package, this is referred to as an integrated scheme. Both employers and employees make pay-related social insurance (PRSI) contributions and these, in turn, may entitle Scheme members to social welfare benefits."
So, in your example above my understanding is, assuming you were entitled to a full CSP valued at 10k, your total pension from the Single Scheme of 40k would effectively be 10k from the CSP plus 30k (i.e. not 10k in addition to the 40k)
OK so the benefits I will be entitled to will be in addition to the CSP. (I expect to receive approx 80% of the CSP based on my contribution history by 65.)On Page 6 of the booklet, it says that the contributory state pension 'is payable in addition to the retirement benefits that you are entitled to receive under the Single Scheme.'. I don't think it would make any sense for the contributory state pension to be deducted from the benefits since a pretty large percentage of people would be paying into the pension (it is compulsory) for no benefit.
This looks like an effort to reconcile the two positions. I don't understand it.My understanding of Page 32, where it says integrated, is that the benefits accrued already take account of the contributory state pension, not that the contributory state pension will be deducted from the benefits accrued.
In the single scheme estimator tool it adds on, rather than includes, my state contributory pension to the total projected benefit
My understanding of Page 32, where it says integrated, is that the benefits accrued already take account of the contributory state pension, not that the contributory state pension will be deducted from the benefits accrued.
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