What happens to DB public sector pension on death

[Baby boomer]

Only slight benefit here for PS workers who are unmarried and childless is that you can claim back your contributions to the spouses and children's scheme on retirement. There was choice given on this whereby you had to decide if you wanted your "as yet to be found spouse" to be covered by your pension if you died or whether you wanted your contributions back rather than having to pay for everyone elses spouses and children. It was a guessing game but I decided any future spouse would have to be financially self sufficient so I opted for the refund! Not sure if this option is available to new entrants.

That option is no longer available. The trade off is that a spouse acquired, or a child sired, post retirement is now entitled to pension benefit following the pensioners death in retirement.

However, there still is, I believe, one exception. If you are professed to a celibate religious life, you are still eligible for a refund of spouses and orphans contributions. Yes, seriously!

 

[JessicaFletcher]

So the pension dies with you if you are childless and spouseless. But the money you've contributed isn't buried with you? Where does it go? That's the question no one can answer. I've been round all the houses of the dept of education pension people and no one can tell me who benefits from my money after I die.

 

[Protocol]

There is no fund.

There is no money "to go" anywhere.

PS pensions are unfunded DB pensions.

 

[Protocol]

So the pension dies with you if you are childless and spouseless.

Correct, if you are a single and childless public servant, who dies a few months or years after retirement, there are no more pension benefits.

Of course, that person would have received a pension lump-sum at retirement, and it would form part of the person's estate, assuming it wasn't spent.

 

[Protocol]

But the money you've contributed isn't buried with you? Where does it go?

The pension contributions made by public servants are not saved or accumulated.

The contributions made by a PS in 1990 or 2000 or 2010 were used to pay the pensions of retired PS at that time.

It is a Pay-as-you-Go pension scheme. There is no fund.

 

[Threadser]

The contributions made by a PS in 1990 or 2000 or 2010 were used to pay the pensions of retired PS at that time.

As you say there is no fund so their contributions were probably also used to fund the pensions of people who qualified for a full state contributory pension on the basis of 5/10 years PRSI contributions.

 

[DingDing]

If a pensioner on class A PRSI Dies between 60 and 65/66, and their partner has a D Stamp, what is the situation.

Say Pay 80k, Pension including Suplementary 40K, Say Pension is 25K and Suplementary is 15K for simplicity.

Would the spouse (Class D) get the Bereaved Partners Pension, based on her partners PRSI contributions, and 50% of the 25K pension.

the Bereaved Partners Pension is about 13.5K +12.5K = 26K.

Assuming the other (D) Rate Partner passes, pay 80K, Pension 40K, no suplementary pension. The surviving partner gets the Berevaved Partners Pensiopn 13.5K and 50% of the partners D Pension of 20K a total of 33.5K.

There is a difference depending on the scheme of the A and D contribution, if either partner had the PRSI contributions, both partners can benefit.

Can anyone confirm how both situations would work.

 

[Saturn]

Can anyone confirm how both situations would work.

The Class A public sector survivors pension is not simply half the main scheme pension. Using your example, and taking the State Pension rate as €15k, the survivor's pension is calculated as:

(80k - 15k)/2/2 = 65k/4 = €16,250.

Combined with a 13.5k Bereaved Partners Pension this gives the surviving spouse €29,750 along with her own Class D pension (ie, €69,750 in total).

If the Class D pensioner dies the Survivor gets a pension of €20k, as you have indicated. However, I assume that for the Class A PS pensioner the Social Welfare Bereaved Partner's pension would impact his Supplementary Pension. So his total pension income would come to €60k (as against €69,750). Certainly when he comes to 66 he would lose both the Supplementary and the Bereaved Persons pension.

 

[DingDing]

Thanks @Saturn I forgot that to get the suplementary pension, you have to declare you are not getting any SW payment. The difference on death between the 2 schemes is stark.