Public sector pension contributions?

lightspeed

Hi

Can anybody help advise me on what % of my monthly salary will go to pension in public sector job?

It is a HEO position which I understands starts at €50,848.

I can't see any other salary calculator to calalculate my net pay other than the one on tax calc.ie

https://taxcalc.ie/budget-2022/

I have the taxcalc app which seems to give about €9 a month more in net pay for some reason.

Also on tax calc app if I budget for a possible 3% salary increase my net pay only increases by €53 more per month.

Why is there a pension deduction and a super annuation contribution? Why not just one?

On tax calc app I see from salary of 50,848 my monthly gross is €4237. The deductions for pension is €184 and then €199 for pension levy which I understand is the super annuation contribution.

184 + 199 = 383

383/4237= 9%

Is this correct? Can I trust net pay calculation is correct on tax calc app?

BJG524

Assume u are new and its the post 2013 scheme.

It's a flat 3% of your gross pensionable pay

And 3.5% of the net pensionable pay - for a fortnightly paid person this is your (gross pay minus 4 times the old age pension rate) *3.5%

lightspeed

https://www.boards.ie/discussion/comment/119205497#Comment_119205497

Thanks

Yes this is my first time ever starting in civil service position. I'm still a bit confused. As far as I know I wont be paid fortnightly and should be paid monthly.

So should the pension deductions in total equate to 9% as tax calc.ie suggests?

I have emailed HR to ask what my monthly net pay will be but just waiting to hear back from them.

lightspeed

Sorry just read your reply further and my understanding based on what you advised is that pension should be as follows.

€50,848 x 3%= 1525.44

€50,848-1525.44 = €49,322.56

€49,322.56 x 3.5% = €1726.29

Total pension deductions per annum (1525.44 +1726.29) = €3251.73

€3251.73/12= € 270.97 per month

Does the above seem correct? If so any idea why tax calc.ie is out so much?

mystic86

https://www.boards.ie/discussion/2058250282/public-sector-pension-contributions

How did you get a HEO job if just joining the civil service, is it a specialist stream?

Butterfly182

Congrats on the job, I'm no good at pension things!

@mystic86 A person can also get a HEO job etc though an open competition

mystic86

https://www.boards.ie/discussion/comment/119208453#Comment_119208453

No, it'll be 200 a month and you can't opt out. Plus the asc which is another 45 a month, mandatory.

No idea why you deducted the first calculation from your pay for the 2nd calculation...

It's 3% of gross pay PLUS 3.5% of (gross pay minus (2 x state contributory pension))

You can read all about it, and get your hands on a calculator, at http://singlepensionscheme.gov.ie/

Geuze

The headline contribution rate is 6.5%, which is made up of main scheme and Spouses &Children scheme.

https://singlepensionscheme.gov.ie/wp-content/uploads/2021/01/Standard-Accrual-Booklet-EN.pdf

3% of gross salary

plus

3.5% of nett salary, where nett salary = (gross - 2*State Pension)

Don't forget, PS also pay the ASC pension conts.

Ciaran

https://www.boards.ie/discussion/comment/119208453#Comment_119208453

€50,848 x 3%= €1,525.44

€50,848-26,343* = €24,505

€24,505 x 3.5% = €857.68

Total pension deductions per annum (1525.44 + 857.68) = €2,363.12

€2,363.12/12 = €196.93 per month

There's also a deduction of the "additional superannuation contribution":

€50,848 - €34,500 = €16,348

€16,348 x 3.33% = €544.39

€544.39/12 = €45.37 per month

*The annual amount of the old age pension multiplied by 2

Manzoor14

Full breakdown of deductions etc below.

Rate Current:50,848.00

Total Pay: 4,237.33

Gross Pay for PAYE: 3,945.49

Net Pay: 2,968.63

Total Deductions: 1,268.70

Deductions:

PENSION SPS: 71.47

PENSION SPS: 127.12

ASC: 45.37

PAYE: 676.07

USC: 131.30

EMPLOYEES PRSI: 169.49

PHI DB: 12.71

PHI: 35.17

rogerywalters

https://www.boards.ie/discussion/2058250282/public-sector-pension-contributions

You should come out with about 1370 net every 2 weeks.

lightspeed

Thanks do you have the option to choose whether you get paid fortnightly or monthly or is it fortnightly for all?

Seems to be quite a variable based on Monthly net pay vs fortnightly but I understand some months have 5 weeks and assume this is the reason for the variance.

wench

https://www.boards.ie/discussion/comment/119211876#Comment_119211876

Pay frequency is tied to grade, you get no choice. COs & similar are weekly, pretty much everyone else is fortnightly.

Your annual pay is divided by 26.09 (leap years!) to get your fortnightly pay. Two months a year you get three paydays, and then every 11 years, you get three months of three paydays, hallelujah!

Check out the help section on the pssc website. Pssc.gov.ie and go to the section, your payslip explained

lightspeed

Thanks

It doesn't seem like it ties back to gross yearly amount of 50,848?

50848/26.09= €1949 per fortnight. So at 10 months = €1949 ×2 = €3898 per month.

3898 x 10 (4 week months) = €38,980

(1949/2) x5 =4872.5

4872.5 × 2 (5 week month's) =9745

€38,980 + €9745 = €48,725.

So I'm not seeing how it equates to gross €50,848 per year?

wench

You've managed to lose a fortnight's pay in your maths there - the 3 payday months are effectively 6 week months, not 5.

There are 26 paydays in a standard year, so 1949 x 26 = 50674 is the normal gross.

Then in the magical 11th year, you get those cumulative underpayments back in the extra 27th pay period.

The next "year 11" is due in 2026 I think.

lightspeed

Thanks I think I'm understanding it now buy car help to feel a little screwed over. It seems then its really a gross of €50674 per annum and not €50,848.

I understand the underpayments get returned every 11 years but what if somebody leaves before 11 years? I assume such underpayments are paid in their final pay along with any annual leave entitlement not taken?

Also the present value of money today is greater than same amount of money in 1 years time. So are the underpayment amounts adjusted for inflation?

caviardreams

https://www.boards.ie/discussion/comment/119222071#Comment_119222071

No, you are not being short changed in any way. It's just there are only so many week (52.18) in a year so the payment date for the .18 carries over into the first week of the next year when the rest of the week/fortnight gets completed so to speak. It's basic maths, nothing untoward.

MakersMark

Sounds like a bargain, when you consider its a guaranteed gold plated Defined Benefit pension.

Congrats!

wench

https://www.boards.ie/discussion/comment/119222071#Comment_119222071

You are massively overthinking it. It amounts to a difference in your take home of a fiver a month.

Nobody is going to keep track of how much you are "owed" for each year, which will have changed with increments, raises, promotions etc. You just get a normal fortnight's pay.

If you start now, you will still get a full extra paycheque in 2026, regardless of not having 11 years service.

And as your salary now will be higher than it was 10, 9, 8 years ago, you are better off with a full fortnight's pay now, than a reduced amount made up of the cumulative fractional amounts.

squigglestrebor

Im new to these negotiations but i presume the unions rejecting the 5% is a good thing for public service? They arent gonna take that offer away? Id have taken the 5% tbh. These are permanent increases.

Shuffl_in

https://www.boards.ie/discussion/comment/119222346#Comment_119222346

They won't take it away anyway. It's guesswork as to how much they'll budge.

Agreeing to a 5% increase during a period of 9% inflation is agreeing to a hefty enough pay cut. And it's not just this year and next, we've fallen behind over the last couple of years too. We won't get 9% because we have to take the hit for global issues and government decisions but hopefully that gap is closed a bit.

squigglestrebor

https://www.boards.ie/discussion/comment/119222450#Comment_119222450

Yeah i agree , i just feel that this inflation could be somewhat temporary , can really see why they wouldnt want to match it. Do you think any deal should be in place for the first increment in oct or could that be 1% as planned? Or is it that effectively zero at present cos this is talks about that deal?

caviardreams

https://www.boards.ie/discussion/comment/119222510#Comment_119222510

Even if inflation is temporary, prices stay at the new higher level permanently (unless there is actually deflation in the future)

lightspeed

https://www.boards.ie/discussion/comment/119222346#Comment_119222346

Where was it reported that the unions rejected 5% increase? I assume that would have been 5% on top of existing increments which I understand where already set to be 1%.

Last I read on RTE news was that there was significant differences between both sides but the unions had not publically given the % increase they wanted.

bobbysands81

https://www.boards.ie/discussion/comment/119222222#Comment_119222222

The state takes in more from the pension pot than it pays out… that’s why we have no option to opt out of the pension, it’s mandatory. If the pension was so onerous on the state then surely there’d be an opt out?

A CS worker would generally get a better return if they were able to join a private pension fund instead of pay into the PS pension fund

Our pensions are FAR from guaranteed, as has already been shown, at the stroke of a pen any Minister can change the terms and conditions of our pensions.

exitstageleft

Can anyone give a straight answer as to whether or not the new civil service pension is good?

I understand that it's not what it used to be (which was, frankly, ridiculous) but the defined benefits aspect seems fairly positive.

Perhaps it depends on your grade since it still seems to be linked to your average salary over your career?

Geuze

The Single PS pension scheme is good.

It's not as good as typical PS pension schemes before that, but it is still good.

Yes, it is linked to average salary over career, that is the main difference compared to existing PS schemes.

Pardon my igorance, havent really paid much attention to the ps pension - is it a lump sum we get when we hit retirement and then the state pension?

lightspeed

https://www.boards.ie/discussion/comment/119263565#Comment_119263565

I an curious about this also. The single person pension excel calculator shows the estimated lump sum and pension amount per annum.

Can anybody confirm regarding the pension per annum amount as per calculator, is this amount what you will get PLUS the lump sum?

If I want to get lump sum and amount per annum as per calculator would I need to be making additional voluntary contributions?

wench

You get the lump sum, and the ongoing pension amount, which includes the state pension.

Shuffl_in

https://www.boards.ie/discussion/comment/119262624#Comment_119262624

I'm curious as to what you think is good about it? It's a mandatory, contributory scheme and just seems like the bare minimum they could get away with in my eyes.

squigglestrebor

How do they work out what % of your average salary you get? And how many years would you have to do to get that max %?

Shuffl_in

https://www.boards.ie/discussion/comment/119266175#Comment_119266175

You'll find all details on the Single Scheme website.

squigglestrebor

https://www.boards.ie/discussion/comment/119266351#Comment_119266351

I asked cos i thought someone might know off hand and i thought it might save me some time. Thanks for your advice.

Geuze

https://www.boards.ie/discussion/comment/119263565#Comment_119263565

PS pension benefits are lump-sum at retirement plus occupational pension plus survivors benefits.

Geuze

https://www.boards.ie/discussion/comment/119266175#Comment_119266175

PS pensions are based on 40 years service for max pension, except for fast accrual schemes like Judges, Gardai, etc.

Geuze

https://www.boards.ie/discussion/comment/119266152#Comment_119266152

What I mean by good, is that the benefits are good compared to the employee contributions, plus it is a DB pension.

squigglestrebor

https://www.boards.ie/discussion/comment/119268321#Comment_119268321

Ah cool thanks.

jaffa20

I don't get how the calculator can be accurate at all when it's linked to CPI and inflation. How can that be estimated? I used the calculator and even when i put in the average salary for the for circa 30 years of service that i will have when i retire, the lump sum and yearly payments aren't great. And here's me hoping to retire early 😟