1 / 10

Understanding Pension and Gratuity Calculations for Public Service Members

This case study examines the pension and gratuity financials for a Sergeant aged 50 with 30 years of service, detailing calculations both before and after March 1, 2012. It covers basic pay, allowances, total pensionable pay, lump sum gratuity, and net deductions. It highlights the differences in pension amounts, public service pension reduction rates, and universal social charge implications. All figures are illustrative, emphasizing that individual circumstances may vary. Members should consult the Pensions Section for personalized assistance.

giulia
Télécharger la présentation

Understanding Pension and Gratuity Calculations for Public Service Members

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Sample Pension / Gratuitypre and post 1 March 2012 Sample Case: Sergeant aged 50yrs. With 30 years service

  2. Pensionable Pay Pre 1/3/’12 • Basic Pay 54,741.00 • Allowances 17,694.00 • Total Pensionable Pay 72,435.00 • Lump Sum Gratuity Gross 108,652.00 • Less Deduction (deductable) 10,910.65 • Lump Gratuity net deduction 97,741.85

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

  4. Pension per Annum pre 1/3/’12 • Pension Gross 36,217.68 • P.S.P.R. (budget 2011) -1,819.59 • Nett of P.S.P.R. 34,398.09 • Universal Social Charge -1,854.04 • Pension nett of USC pre tax 32,544.05

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

  6. Public Service Pension Reduction • Current PSPR rates are 0% on the first €12,000 of pension per annum, 6% on the next €12,000, 9% on the next €36,000 and 12% on the remainder • Average of about 4.2% • Please watch Budget 2012 on December 6th

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

  8. Example only! • Please note that the foregoing is an example only and that the circumstances of each officer could vary substantially from those in the example

  9. Budget 2012 • Please refer to the Budget on 6th. December 2011 for any possible changes to pensions or gratuities • Currently, gratuities under €200,000 are not subject to tax. • This means gratuities of AGSI members are not subject to tax • Please note the €200,000 threshold includes combination of Garda / Private lump sum funds!

  10. Questions / Comments • Please, please no! • I am not a pensions expert • Members should contact Pensions Section Killarney for their individual details • Any decision to retire / not to retire is an individual one and should be well researched / retire only if YOU want to! • Do not be panicked into retirement

More Related