Teachers Pension and State Contributory Pension

Hi,

What happens in the case where a person worked 20 years paying state pension contributions and now working as a state paid teacher for 15 years paying contributions to a Teachers pension?.

Does the state pension contributions transfer to Teachers pension? Or are there now two pensions?

Thanks.

CramCycle

Two seperate pensions, no different than if you had a private pension, you get your state one plus whatever other one you contributed too.

@Cram Cycle, many thanks.

Charles Babbage

https://www.boards.ie/discussion/comment/120354654#Comment_120354654

Well slightly different. Public pensions are decreased if the regular pension increases, which is not usually the case for private pensions.

CramCycle

https://www.boards.ie/discussion/comment/120355263#Comment_120355263

I am pretty sure that isn't true unless the government votes that way. Public pensions have already been reduced substantially. If the state pension increases it is either due to necessity or vote buying, but either way, it will not lower a public pension. Now it is taxable if that's what you mean.

Geuze

It is true.

PS pensions are co-ordinated with the SPC to deliver 50% of final salary for somebody with 40 years service.

If the SPC element increases, then the PS element decreases.

EDIT: I think that's wrong.

Geuze

For example, the formula for the PS pension is as follows:

See Q9 here:

http://www.cspensions.gov.ie/faq2.pdf

Geuze

Here is the formula:

Pension = (yrs of service) (1/200) (earnings up to 3.33 times SPC) + (yrs of service)(1/80)(earnings over 3.33 times SPC)

Imagine you retire from PS on 1,000 per week, with 40 years service.

Pension is 500 per week, made up of:

SPC = 265.30

PS pension = 500 less the SPC = 235

Now, what happens when the SPC increases to 275 pw? Does the PS pension fall to 225pw? No it doesn't, AFAIK

But a different person retiring a year later, facing a 275 SPC, would get a lower PS pension?