What counts as final salary in calculating lump sum for pension post 2004

buzybee

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I joined the civil service in 2007.

At the moment I work nearly full time. I take a parental day every few weeks.

I was hoping to go on a 4 day week in the years leading up tp retirement. The top of my salary scale is 63 k. If I went on a 4 day week in the years leading up to retirement, would my lump sum be only based on 50.4k i.e 4/5 ths of my full salary.? I know that if I take unpaid leave I accrue service more slowly.

I was talking to people at work and they said cutting my earnings just before I retire will reduce my lump sum, and it is better to do a 4 day week earlier, and go full time for 3 years before retirement.

I know that if I have 22 years service, the lump sum will be 3/80 for every year I work. Would the 3/80 be based on the fulltime salary for my gtade at 63k or would it be based on 4/5 of 63k if I do a 4 day week.

Thanks
 
The top of my salary scale is 63 k. If I went on a 4 day week in the years leading up to retirement, would my lump sum be only based on 50.4k i.e 4/5 ths of my full salary.? I know that if I take unpaid leave I accrue service more slowly.

Your pension is calculated on the basis of final salary for the post (on a whole-time basis) plus any pensionable allowances, if applicable. As an example, if you worked half-time for all your 40 year career and the final whole-time equivalent salary for the post is €63k your pension would be calculated on the full €63k - but with 20 years service rather than 40. (There is a slight proviso that you would need to have been serving at that grade level for the final 3 years of service - otherwise an average of the WTE salary for the final 3 years is used).

Look at it another way - if your go half-time for your final 10 years you will only accumulate 5 years of pensionable service but your pensionable salary will not be impacted. It does not matter when you work part-time in your career, whether beginning, middle or end.The only difference might be if there are other pensionable allowances associated with the post which might be impacted by your part-time work in the final years. Although, the pensionable allowances can be calculated on the basis of the best 3 of your final 10 years.
 
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Thank you very much, Early Riser. The colleagues at work may have been talking about allowances. It is nice to know I won't be penalised if I reduce my hours in the years leading up to retirement.
 
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