Upload
june-paul
View
213
Download
1
Embed Size (px)
Citation preview
University College Cork Pension Scheme
Retirement Planning
22nd February 2011
Susan O’CallaghanHR Operations Partner
What is the purpose of the plan?
To provide you with benefits on retirement To provide you with benefits on leaving
service To provide your dependants with a benefit on
your death in service/retirement
How much do I pay?
Your contribution is 3% of Salary plus 3.5% of Net Pensionable Salary (salary less twice the state pension payable to a single person)
Members who pay Class D PRSI contribute 1.5% of salary
Your benefits on retirement
Your benefits on retirement are determined by a number of factors:
– Your service to retirement– Your salary on retirement– The class of PRSI you pay (people paying Class
D PRSI do not accrue an entitlement to the state pension)
Your benefits on retirement
Normal Retirement Age is 65 (* pre 1 April 2004 entrants to the public sector can retire at age 60)
It is possible to retire prior to 65 on a “Cost Neutral” basis
You will be entitled to both a pension and a tax free lump sum (*members paying Class D PRSI can forego the tax free lump sum and opt for a higher pension)
Your benefits on retirement
Benefits on retirement at age 65Salary: €45,000 * Net Pensionable: €21,049Service to 65: 40 yrs Salary (NPS)**
Pension : €10,525 p.a. plus State (€11,975***) : €22,500(Calculation: NPS x Service/80)
Lump Sum: €67,500 (one-off)(Calculation: Salary x 3 x Service/80)
*All retirements prior to 29th February 2012 will be based on the pre cut salary at 31 December 2009**For members paying Class D PRSI pension is based on full salary as there is no entitlement to a state pension. *** Amount of state pension for 2011
Your benefits on retirement
Will my pension and my spouse’s pension increase in payment?
The pension in payment will increase in line with the current public sector policy of “pay parity” increases. This means that as the relevant salary scale increases the pension in payment will also increase.
Note: The pension in payment is now subject to the Public Service Pension Reduction (PSPR) if retirement occurs prior to 29th February 2012
Your benefits on retirement
Less than 40 years service to age 65
Your pension will be based on whatever your service is to age 65 and salary on retirement. It is possible to pay additional contributions so as to increase your service on retirement.
Your benefits on leaving service
Less than 2 years scheme service:You will be entitled to a refund of your own contributions less tax, currently 20%
More than 2 years scheme serviceYou will be entitled to a preserved pension from age 65 based on service to date of leaving and the ‘uprated’ salaryorYou may transfer your service to another Irish public sector employer who operates within the public sector transfer network(The option to transfer also applies if you have less than 2 years scheme service)
Your benefits on death in service
Lump Sum payable to your dependants/estate Calculation based on service to date of death and will be a minimum of once salary and maximum of 1.5 times salary
Spouse’s PensionCalculation based on expected actual service to age 65 and salary at date of death.
Children’s PensionCalculation is 1/3rd of the Spouse’s Pension payable to a maximum of 3 children.
Your benefits on death in service
Benefits on death in service at age 45Salary: €45,000 Spouse’s Pensionable: €33,025Service to 65: 40 yrs Salary (SPS)*Service on death: 20 yrs
Spouse’s Pension : €8,256 p.a. plus State (€10,062) : €18,318(Calculation: SPS x Service to 65/160)
Lump Sum: €45,000 (Calculation: Salary x 3 x Service on death/80)
Children’s Pensions where applicable will be 1/3rd of the Spouse’s Pension*State pension payable assuming recipient is under age 66
Your benefits on death in retirement
Spouse’s PensionCalculation based on service to the date of retirement and the Spouse’s Pensionable Salary at the date of death.
Children’s PensionPayable where applicable
Payment of Additional Contributions
Is it possible to pay AVCs to the scheme?Yes you can pay additional contributions to the scheme so that you purchase notional years service. Contributions can be paid via lump sum or regular monthly contributions.If you want to avail of this option please contact HR Pensions at least 1 month prior to your next birthday.
Payment of Additional Contributions
I have temporary service, is this pensionable?Yes provided the service was not hourly paid and equates to at least 20% (50% pre 20 December 2001) of the full-time equivalent. Contributions must be paid in respect of the service in order for it to be included for pension purposes. (Prior temporary service not paid for will impact on your entitlement to Professional Added Years, where relevant).
Transfer of Service
I have prior service with another public sector body, can this be transferred?Yes, provided your previous employer is part of the public sector transfer network. If you wish to avail of this option please advise your previous employer that you are now a member of the UCC scheme.
Transfer of Service
I have prior service with a private sector company, can this be transferred?No. As the UCC pension scheme operates on a ‘pay as you go’ basis, it is not possible to accept monetary transfers. (Retained benefit entitlements with another pension scheme will impact on your entitlement to Professional Added Years, where relevant).
Recent Developments
Public Service Pension Reduction (PSPR)
Taxation of Lump Sum in excess of €200,000
Professional Added Years – application of the discretion
HR Pensions Contact
Contact HR Pensions at:Email: [email protected]
Tel: 021-490 3449
You can access the HR Pensions webpage at:
http://www.ucc.ie/en/hr/PensionsOffice/
Useful Contact Information
Department of Social Protection
Website: www.welfare.ie
Telephone (State Pension): 071 – 9169800General Queries: 01-8748444
The Revenue Commissioners
Website: www.revenue.ie
South West Region PAYE, Government Offices, Sullivan’s Quay, CorkTelephone: 021 - 4325000
Questions???