Sample Pension / GratuitySample Pension / Gratuitypre and post 1 March 2012pre and post 1 March 2012

Sample Case: Sergeant aged Sample Case: Sergeant aged 50yrs. With 30 years service50yrs. With 30 years service

Pensionable Pay Pre 1/3/’12Pensionable Pay Pre 1/3/’12

Basic PayBasic Pay 54,741.00 54,741.00 AllowancesAllowances 17,694.00 17,694.00 Total Pensionable PayTotal Pensionable Pay 72,435.00 72,435.00 Lump Sum Gratuity Gross 108,652.00Lump Sum Gratuity Gross 108,652.00 Less Deduction (deductable)Less Deduction (deductable)

10,910.6510,910.65 Lump Gratuity net deduction Lump Gratuity net deduction

97,741.85 97,741.85

Pensionable Pay post 1/3/’12Pensionable Pay post 1/3/’12

Basic PayBasic Pay 51,385.00 51,385.00 AllowancesAllowances 16,609.24 16,609.24 Total Pensionable PayTotal Pensionable Pay 67,994.24 67,994.24 Lump Sum Gratuity Gross 101,991.36Lump Sum Gratuity Gross 101,991.36 Less Deduction (deductable)Less Deduction (deductable) 10,241.75 10,241.75 Lump Gratuity net deduction 91,749.61Lump Gratuity net deduction 91,749.61 Difference pre / post 1/3/’12 5,992.25Difference pre / post 1/3/’12 5,992.25

Pension per Annum pre 1/3/’12Pension per Annum pre 1/3/’12

Pension GrossPension Gross 36,217.68 36,217.68 P.S.P.R. (budget 2011)P.S.P.R. (budget 2011) - -

1,819.591,819.59 Nett of P.S.P.R.Nett of P.S.P.R. 34,398.09 34,398.09 Universal Social ChargeUniversal Social Charge - -

1,854.041,854.04 Pension nett of USC pre tax Pension nett of USC pre tax

32,544.0532,544.05

Pension per Annum post 1/3/’12Pension per Annum post 1/3/’12

Pension GrossPension Gross 33,997.29 33,997.29 P.S.P.R. (budget 2011)P.S.P.R. (budget 2011) 0.00 0.00 Nett of P.S.P.R.Nett of P.S.P.R. 33,997.29 33,997.29 Universal Social ChargeUniversal Social Charge -1,698.61 -1,698.61 Pension nett of USC pre tax 32,298.68Pension nett of USC pre tax 32,298.68 Difference pre / post 1/3/’12 245.37Difference pre / post 1/3/’12 245.37

Public Service Public Service PensionPension Reduction Reduction

Current PSPR rates are 0% on the Current PSPR rates are 0% on the first €12,000 of pension per annum, first €12,000 of pension per annum, 6% on the next €12,000, 9% on the 6% on the next €12,000, 9% on the next €36,000 and 12% on the next €36,000 and 12% on the remainderremainder

Average of about 4.2%Average of about 4.2% Please watch Budget 2012 on Please watch Budget 2012 on

December 6thDecember 6th

Universal Social ChargeUniversal Social Charge

Current USC rates are 2% of the first Current USC rates are 2% of the first €10,036 of pension per annum, 4% €10,036 of pension per annum, 4% on the next €5,980 and 7% on the on the next €5,980 and 7% on the remainder Medical card holders do remainder Medical card holders do not go on the 7% scalenot go on the 7% scale

Example only!Example only!

Please note that the foregoing is an Please note that the foregoing is an example only and that the example only and that the circumstances of each officer could circumstances of each officer could vary substantially from those in the vary substantially from those in the exampleexample

Budget 2012Budget 2012

Please refer to the Budget on 6Please refer to the Budget on 6thth. . December 2011 for any possible December 2011 for any possible changes to pensions or gratuitieschanges to pensions or gratuities

Currently, gratuities under €200,000 Currently, gratuities under €200,000 are not subject to tax. are not subject to tax.

This means gratuities of AGSI This means gratuities of AGSI members are not subject to taxmembers are not subject to tax

Please note the €200,000 threshold Please note the €200,000 threshold includes combination of Garda / includes combination of Garda / Private lump sum funds!Private lump sum funds!

Questions / CommentsQuestions / Comments

Please, please no!Please, please no! I am not a pensions expertI am not a pensions expert Members should contact Pensions Members should contact Pensions

Section Killarney for their individual Section Killarney for their individual detailsdetails

Any decision to retire / not to retire is an Any decision to retire / not to retire is an individual one and should be well individual one and should be well researched / retire only if YOU want to!researched / retire only if YOU want to!

Do not be panicked into retirementDo not be panicked into retirement