Taking a Public Sector Job - Moving from Private Sector

[kINGKONG]

Hey;

Long story short I am in the aviation Industry working in IT as a daily rate contractor with 30 days notice and got offered a good role in a main Irish hospital recently.

I am seriously considering it as I feel too exposed in the aviation sector

Pros
- I will live close to work and no toll
- I get out of aviation
- Government Pension
- 30 days annual leave vs no paid holidays
- I might be able to significantly impact a key hospitals performace and improve patient care

Cons
- At least a 20% drop in income, currently contracting with an income over 110K this will drop to 80K
- Have been warned the boss is difficult to work with
- I have no idea what the pension is and what it's worth
- Culture shock might be too much I am a workaholic and I don't do lazy or slow

My Questions:

1. Can I negotiate with HR on where I start on a Salary Scale coming from the private sector?
2. Can I find out what a State Pension is worth for me assuming starting in 2021, aged 37 with no previous civil service
3. I did a 3-month Internship with the Central Bank in 2006 does this favourable impact my pension entitlement
4. Do you think I am mad to consider taking it??

 

[Early Riser]

Can I find out what a State Pension is worth for me assuming starting in 2021, aged 37 with no previous civil service

First off, it is the Public Service pension that you want to estimate. The State Pension is what you will be awarded based on your PRSI record (formerly the "Old Age Pension")

Secondly it is very difficult to say how much your Public Service service will amount to as it is based on career average earnings, with a certain percentage of your salary each year counting towards pension. Even if you can guess that you will start at €80K and finish at age 68 on €110K (all on today's terms) it is still difficult. It depends if you make rapid progression up that scale in your early career (good) or only in your latter years (not so good).

However, here is a very rough estimate based on a starting salary of €80K and finishing at €110K on a promotion/incremental scale which yields a career average salary of €100K. Your normal retirement age is presumably 68, so you can expect to have 31 years service.

Estimate is (€100K * 31/80) - (13K * 31/40) = €38750 - €10000 = €28750. (The €13K is the approx current State Pension rate).

In addition to this roughly estimated PS pension you also apply separately for the State Pension based on your total PRSI record. If you have already been paying PRSI in your current role then these contributions combined with your future contributions in your new job should get you a full State Pension.

You can make your own estimate using notional career average earnings using the above formula. Just to emphasise though that this is not an official formula and is only a rough ready reckoner.

Additional to the above would be your pension lump sum which is currently tax free.

There is provision to retire with an actuarially reduced pension at any age form 55 - based on your years served and then with an actuarial reduction applied. Alternatively you can resign and leave your pension undrawn until 68, avoiding the actuarial reduction.

 

[NoRegretsCoyote]

Can I negotiate with HR on where I start on a Salary Scale coming from the private sector?

You can try. Approach it by playing up your relevant experience rather than saying how much you are worth in the private sector.

I did a 3-month Internship with the Central Bank in 2006 does this favourable impact my pension entitlement

Almost certainly not.

 

[kINGKONG]

Thanks you Earlu Riser for this reply, it makes sense to me now (most of it!)