Which is better: deferring a PS pension but resigning or taking CNER?

[sidzer]

Claim JPRB for 9 months immediately after you cease employment. Then if possible get part time employment for 13 weeks, cease this employment and then claim 9 months of Jobseekers Benefit. The rate of JB payments for this will be based on your earnings two years prior to the JB claim start date.
It is likely that you would qualify for the full rate payments.

Can you retire and defer your pension and then get JPRB? Is this means tested? This looks like a very good plan if it can be worked. Thanks Robovac

 

[Robovac rider]

Yes you can retire and claim JPRB. When applying don't state reason for ceasing employment as retirement. State something like workplace stress as the quitting reason.
JPRB is not means tested.

Make sure to only engage in part time employment for 13 weeks for a subsequent JB claim. Only work for a few hours per week.
Full time employment for 13 weeks will not allow for qualification for JB.

 

[Dave Vanian]

pre 1995, 1995-2013, or the newer pension?

1995-2013

 

[TheJackal]

I'm also 1995-2013 pension. Please find attached my best guess at a calculator I've done up.

Items in yellow are where you need to put in your own info e.g. salary, service on planned retirement date.

Your pension is part paid via State Pension Contributory (SPC) based on number of PRSI stamps and the balance by your public service dept.
If you retire early you do not get the SPC part until 66, as too young.
A supplementary pension is paid for 1 year from 65 (when our contracts entitle us to our pension with no reduction) to 66 (the current SPC age).

The earliest we can retire early is 55. Actuarial reduction % you select from table should be age you want to retire early.

State Pension Contributory figure is up to date for 2026 but will likely go up every year so can be updated annually.

Don't take everything I have here as Gospel but I hope it helps.

 

[Saturn]

I'm also 1995-2013 pension.

Is your "normal retirement age" 60 or 65? A pre-April 2005 entrant or subsequent? The actuarial reduction differs. A pre-2005 entrant can take normal retirement from 60 (or take CNER from 50).

Edit: Got you now - you are calculating as a post-2005 entrant. So if taking CNER at 55 the crossover point is 73. Beyond that the preserved pensioner does better financially. I didn't think it would be that soon.

 

[messyleo]

Thanks thejackal - is there any way to access / become eligible for the supplementary pension before 65, for example if you already have full 40 years PRSI paid @ age 60? It would really top up the CNER

 

[Saturn]

is there any way to access / become eligible for the supplementary pension before 65, for example if you already have full 40 years PRSI paid @ age 60? It would really top up the CNER

No, there is no access before "normal retirement age". A pre-2005 entrant can access the supplementary from 60.

 

[TheJackal]

@Saturn Yes, in the example I gave taking CNER at 55 the crossover point is 73. But that depended on the years service and pay.

If you waited til say 56, the actuarial reduction is lower, pay and years service will be higher, etc. so breakeven point heads closer to 80.

If you decided to go at 55 but not draw down til 65 you'd need a nice bit of savings to sustain you as cannot draw down an AVC.

 

[etjo17]

I updated @TheJackal 's breakeven calculator with the updated CNER rates (hopefully I've left all formulae intact!! )

 

[TheJackal]

Thanks etjo17
I've updated the sheet with two tabs usign the new actuarial tables from 2027:
entrants Apr 1995-Mar 2005 (normal retirement age 60) and entrants Apr 2005-2012 (normal retirement age 65)

 

[etjo17]

Even better, thank you!