Very confused - New entrant to civil service

gutteruu

I'm back with the council a few weeks but I'm baffled by 3 pension charges. I was aware of the pension 'levy' but I have 2 other pension deductions with no explanation. They just say 'pension contribution'.

I'm ringing Monday but would like to be half informed before I do. Are these normal and/or compulsory? Rates were....

Pension contrib 50
Pension contrib 25
Pension Levy 93

AprilMayJune

All compulsory. Three pension deductions plus pension levy. The pension deductions are for your pension, your pension lump sum and spouses and children pension.

billyhead

Its unfair having these deductions in place if your not married and have no dependents

AprilMayJune

Everyone pays whether they have a spouse or children or not. If you do have either then their pension is based around the value of your pension not how long you've been married or the age of your children so it has to be paid from the start. If you don't have a partner or kids when you retire then you get a refund.

gutteruu

Thanks. Well thats bloody annoying. 35 years to wait for the hope of cash. The contract is only temporary so.... is there any way I can pay it into a different pension scheme as I know after 2 years its locked away until retirement with public service one. Maybe if it was paid to a private pension I could cash it out in a few years ?

IrishPhoenix

I think if it's a contract you can get a refund on all pension monies paid in when you're finished but only if you're not planning on rejoining the public service.

Rock of Gibraltar

If the plan you're on is the Single Pension Scheme (which I assume you're on as a new entrant) then those are your obligatory contributions under that scheme.
They should be 3.5% of net pensionable remuneration (Pensionable remuneration less twice the rate of the State Pension Contributory (SPC).
PLUS 3% of pensionable remuneration.

There is no separate spouse and children's contribution on the Single Scheme.

The other is the pension levy which even though the Single Scheme is a contributory scheme does not count as a contribution to your pension.

It's all explained badly here: http://www.per.gov.ie/wp-content/uploads/Single-Scheme-booklet-Final.pdf

Edit: This circular is a bit better at explaining it: http://circulars.gov.ie/pdf/circular/per/2014/11.pdf

Kristopherus

Rock of Gibraltar wrote: »

The other is the pension levy which even though the Single Scheme is a contributory scheme does not count as a contribution to your pension.

Instead its goes to cover the black hole that is Anglo Irish bank. In reality it is a tax on public servants. Note that is taxed as well. So you are hit with the double whammy of paying the contribution(tax) and being taxed on same:mad::mad::mad:.

Prenderb

IrishPhoenix wrote: »

I think if it's a contract you can get a refund on all pension monies paid in when you're finished but only if you're not planning on rejoining the public service.

There's a time limit on this, which I think is 2 years...i.e. if you're only in for 2 yrs or less you can reclaim. Check with your HR./Payroll.

wat24

Yes it's a 2 year limit. I worked in the HSE for 2 years and 2 months and couldn't get it refunded as I was two months over the two year