Basic Benefits of Public Sector Pension Schemes
The public sector superannuation schemes all provide some basic benefits including sick pay, death-in-service benefit, annual pension at retirement and a tax free lump sum. The amount of benefits received by each member are determined by the years of service, salary and retirement age. However, there are some marked differences between the schemes in how benefits are calculated.
Tax Free Lump Sum (TFLS)
All public sector employees in Ireland receive at retirement a Tax Free Lump Sum (FTLS). This lump sum incurs no tax up the amount of €200,000.
In addition to the FTLS, public sector employees receive a pension at their Normal Retirement Age (NRA). The amount of pension received at retirement is calculated differently for Pre 2004, 2004 – 2012 and Post 2013 Entrants. All four schemes are Defined Benefit Schemes, but the pre 95 is based on final salary only and not integrated with the Irish Contributory State Pension (CSP).
Sick Pay and Ill Health Early Retirement (IHER)
- Sick pay – 92 days full pay in any year, 91 days half-pay in any year, subject to a maximum of 183 days in any 4 year period.
- Public Sector Employees who have to pension on IHER receive a pension based on years service and salary. They have to have been a member of the scheme for a minimum of 2 years.
Scheme members receive a Death Gratuity which is paid out similar to a life insurance. Furthermore, the death-in-service benefit provides for a spouse’s pension and children’s pension.