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Civil Service Pension (Single Scheme) Questions

  • 05-04-2021 5:52pm
    #1
    Registered Users Posts: 230 ✭✭ Galwayhurl


    1. Are my rough calculations correct?

    Example:

    If I work as an Executive Officer for 23 years. My average earnings over the period is 44,000.

    As far as I know, someone who worked 40 years would get 22,000.

    So would my pension would be

    22,000 - 12,600 (State Pension) x 23/40 = 5405 (CS part of pension)

    ...plus the State Pension (12,600) = Total Pension = 18005.

    That correct?

    2. Second question, can you buy years of service on the Single Scheme? When it launched the literature said that it wasn't possible but that they were hoping to have such a facility in the future.

    Is it possible these days?


    Thanks for reading.


Comments

  • Registered Users Posts: 282 ✭✭ tomfoolery60


    Galwayhurl wrote: »
    1. Are my rough calculations correct?

    Example:

    If I work as an Executive Officer for 23 years. My average earnings over the period is 44,000.

    As far as I know, someone who worked 40 years would get 22,000.

    So would my pension would be

    22,000 - 12,600 (State Pension) x 23/40 = 5405 (CS part of pension)

    ...plus the State Pension (12,600) = Total Pension = 18005.

    That correct?

    2. Second question, can you buy years of service on the Single Scheme? When it launched the literature said that it wasn't possible but that they were hoping to have such a facility in the future.

    Is it possible these days?


    Thanks for reading.

    1: they have a spreadsheet available to have a look at what pension you could potentially expect:

    https://singlepensionscheme.gov.ie/for-members/scheme-information/single-scheme-estimator-tool/

    Basically it works such that effectively each year you work you earn a little bit of a lump sum for retirement and a deferred annuity, based on your earnings that year. These deferred incomes are then increased in line with inflation and you add them all up at retirement to get your pension.

    2: I understand that it is but I'm not sure there is any advantage to buying service now if you are to retire in 23 years, indeed you may be disadvantaged. You'd be best getting some advice on that if you decide to do so.


  • Registered Users Posts: 230 ✭✭ Galwayhurl


    1: they have a spreadsheet available to have a look at what pension you could potentially expect:

    https://singlepensionscheme.gov.ie/for-members/scheme-information/single-scheme-estimator-tool/

    Basically it works such that effectively each year you work you earn a little bit of a lump sum for retirement and a deferred annuity, based on your earnings that year. These deferred incomes are then increased in line with inflation and you add them all up at retirement to get your pension.

    2: I understand that it is but I'm not sure there is any advantage to buying service now if you are to retire in 23 years, indeed you may be disadvantaged. You'd be best getting some advice on that if you decide to do so.

    Hi. Thanks for your reply.

    I looked at that tool just now. For the Gross Pay, do I put in my salary this year or what I think will be my average salary over my career?

    Secondly, why would buying years not be good value? Can someone in the CS pension office go through things with me or do I have to seek independent advice?

    I'm only starting the CS in the next few weeks. Thanks again!


  • Registered Users Posts: 844 ✭✭✭ Vologda69


    Galwayhurl wrote: »
    Hi. Thanks for your reply.

    I looked at that tool just now. For the Gross Pay, do I put in my salary this year or what I think will be my average salary over my career?

    Secondly, why would buying years not be good value? Can someone in the CS pension office go through things with me or do I have to seek independent advice?

    I'm only starting the CS in the next few weeks. Thanks again!

    You might want to check the tax relief situation. It would be generous for someone in their 40s. Pension section or Revenue would tell you more


  • Registered Users Posts: 10,900 ✭✭✭✭ snoopsheep


    If you fancy your chances at advancement over the next 23 years, buying early is advisable

    But not cheap!


  • Registered Users Posts: 147 ✭✭ the explorer


    Does anyone know what happens if you leave the civil service after a number of years in the single scheme? for example if you joined after 2013, worked for 5-7 years and then left, would you get a lump sum based on contributions and years (5/80), how would your state pension work.

    I've been in for a few years now and they don't exactly lay this out clearly!


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