Thank you. That's a very interesting figure. I was thinking it must be something higher than the % contribution public sector employees themselves pay in themselves.
Any idea where you might have seen the 15% figure? Would love to dig into analysis of this!
Thank you. That's a very interesting figure. I was thinking it must be something higher than the % contribution public sector employees themselves pay in themselves.
Any idea where you might have seen the 15% figure? Would love to dig into analysis of this!
Thank you for sharing thisPlease see the attached analysis of PS pensions.
Just wondering if these percentages take into account the state pension that accrues to private sector workers on the basis of PRSI contributions alone. For example if these public sector employees just made A rate PRSI contributions and didn't contribute to a pension at all they would have been entitled to the state pension at aged66 ? Doesn't everyone who joined the CS/PS after 1995 pay full PRSI? Also rates of PRD are quite significant at higher salary levels and should be included in the calculations to give a more accurate percentage estimate?The pre 2013 PS pension has an average notional employer contribution rate of 29%.
View attachment 8543
The SPSPS is less generous, so the notional contribution is much less.
I hope nobody minds if I bump this! Interested in any opinion since I’m pretty clueless!Thanks for this extremely helpful thread. I understand that purchasing pension annuities under the scheme does not look like good value. But what about the lump sum component? At my age (early 40s) according to the booklet €1 of lump sum will cost me 0.94 cent right now. Taking into account tax relief at 40% and that the lump sum is also updated with CPI and the fact that this is as safe an investment as it gets, is this not a good move? Or am I missing something?
This cohort of public servants have a "co-ordinated" pension, so their state pension is incorporated into their occupational pension. I just wondered if this is taken into account in the notional employer percentages that were quoted for the pre 2013 cohort?Public /Civil Servants recruited after 6/4/1995 are typically Class A . Therefore they will be entitled to a Social Welfare pension in addition to any Occupational Pension.
This cohort of public servants have a "co-ordinated" pension, so their state pension is incorporated into their occupational pension. I just wondered if this is taken into account in the notional employer percentages that were quoted for the pre 2013 cohort?
No allowance for the cost of the State Pension (Contributory) has been made in this review as it is
assumed that this has been provided for via the PRSI system.
Pre-2013 entrants reflect a mix of pre- and post-2004 entrants (who enjoy different benefit structures and
minimum retirement ages) and the overall rate reflects a weighted average of the number of public service
employees in each group, broadly 67% pre-2004, 33% post-2004.
Given that these figures are from a 2017 review, I'm curious as to how they are affected by the 2020 reduction in asc % contributions for spsps members:However the pre-2013 notional contribution is weighted 2:1 to pre-2004 entrants. That balance is likely reversed now, if not far less but 24% is still high (19% less PRD) in any case.
Interestingly, zero differential vs. private sector for notional contribution rate post-2013.
View attachment 8551
Given that these figures are from a 2017 review, I'm curious as to how they are affected by the 2020 reduction in asc % contributions for spsps members:
Link :
Also presume the 7% contribution figure is for the minority of private sector employees with defined benefit schemes, so as to compare like with like?
At this review a cost of 11% has been attributed to a private sector employee. This comprises a cost of
22% for DB schemes and 7.0% for DC schemes and a weighting of 70%, 30% attributed to these scheme
types reflecting the profile of the post-2004 cohort equivalents in the public sector expected to be members
of these schemes at the current time.
Post-2013 entrants in the Single Scheme are being compared with employer contribution rates being paid
in respect of employees in DC schemes only, reflecting the fact schemes set up since 2013 have virtually
all been on a DC basis. Therefore a cost of 7% has been attributed to equivalent private sector employees
for this cohort.
So the notional Employer contribution rate for the spsps is now about 11%?The effective rates are c. 2% now, higher back in 2017.
Its in the report.
Well what's like for like? Personally disagree with broad public v. private sector wage comparisons because, well, they are not comparable IMO.
When we compare pre-2013 scheme with private sector DB schemes the contribution rates are similar or less considering PRD.
View attachment 8555
No, its 7%. SPSPS is post-2013.So the notional Employer contribution rate for the spsps is now about 11%?
How would rate the spsps against an average or even best in class pension scheme available to post 2013 private sector workers?
Excuse my ignorance, but if the employee contribution via the asc has reduced since January 2020, then hasn't the notional employer contribution increased from 9% to make up the difference?
Ah I see.ASC is the new PRD which is excluded from the analysis.
Ah I see.
So you're suggesting the current average notional employer contribution to the spsps is about 7%,down from 9% in 2017? What is the reason for the decrease? Does this mean the % employee contribution has increased?
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