HSE Employee Superannuation Scheme
The HSE Employee Superannuation Scheme is a State defined benefit pension scheme. All employees in pensionable positions recruited prior to 1st January 2013 are members of this scheme. Also, staff members that transferred from specified bodies (e.g former Health Boards) to the HSE on 1st January 2005 are themselves members of the HSE Pension Scheme, however they are entitled to the terms which applied in the Local Government Superannuation Scheme (LGSS).
Key Points:
- Unfunded scheme: No investment fund, benefits paid out by employer as they fall due
- Variety of benefits available:
- Lump sum on retirement
- Pension on retirement
- Death-in-service gratuity
- Spouses’ and children’s pension
- Ill-health retirement benefits
- Double membership: Must participate in both the Superannuation Scheme (the Main Scheme) as well as the Spouses’ and Children’s Contributory Scheme
- Integrated scheme: Takes into consideration the State Pension as well as any other social insurance benefits payable to you when calculating your overall pension
| Scheme | Class D (HSE/LGSS 1986 Terms) | Class A (HSE/Officer LGSS 1986 Terms) | Class A (Non-Officer LGSS 1986 Terms) |
| Main Scheme | 5% of PR | 3.5% of net PR 1.5% of PR |
3.5% of net PR 1.5% of PR |
| Spouses' & Children's Scheme | 1.5% of PR | 1.5% of PR | 1.5% of net PR |
- Class A Officer LGSS: 3.5% of net pensionable remuneration and a total of 3% (50/50 spilt between Main Scheme and Spouses’ & Children’s Scheme) of pensionable remuneration due
- Class A Non-Officer LGSS: 5% of net pensionable remuneration (3.5% Main Scheme, 1.5% S&CS) and 1.5% of pensionable remuneration due
- Class D: 6.5% of pensionable remuneration (5% Main Scheme, 1.5% S&CS) due
Pensionable remuneration: Earnings reckonable for pension purposes (salary and any pensionable allowances (listed here: Final 1st July 2021 Consolidated Salary Scales.xlsx - a3a09199-be0e-4fee-b81c-6e444b29f03f.pdf (www.gov.ie))), excluding overtime
Net pensionable remuneration: Pensionable remuneration less twice the value of the State Pension at the time for a single adult with no dependents
Retirement Age:
- Min age new entrant: 65 years
- Min age non-new entrant: 60 years
A new entrant is anyone who began employment in the public sector on or after 1st April 2004, or was employed in a public service body on 1st April 2004 but left such office for a period greater than 26 weeks before joining rejoining the public service.
Early Retirement:
- New entrant: from age 55
- Non-new entrant: from age 50
Compulsory Retirement:
- New entrant: N/A
- Non-new entrant: 70 years of age for all those who hadn’t already turned 65 years old when legislation regarding the new retirement age passed on 26th December 2018
Retirement Benefits – Pensionable Remuneration:
Retirement benefits will be calculated based on your pensionable remuneration at the date of your retirement. This is the summation of your pensionable salary as well as any pensionable allowances:
- Pensionable salary: Your last salary on your last day of employment (however if you were recently promoted than the average salary over your last 3 years in employment will be used)
- Pensionable allowances: The average of the variable pensionable allowances received in the best 3 consecutive years out of your last 10 years in service (10 years prior to retirement). Note that reckonable allowances fall in line with the grade at which they are earned at i.e if you were promoted 6 years prior to retirement only those allowances received in the past 6 years would be reckonable
*Max no of years in reckonable service: 40 years*
Retirement Benefits – Lump Sum:
Upon retirement, you will receive a lump sum that is equivalent to 3/80th of pensionable remuneration for each year of reckonable service. Note that this amount cannot exceed 1.5x your pensionable remuneration
Retirement Benefits – Pension:
The method of calculation will depend on your PRSI status and pension terms (HSE or LGSS (officer/non-officer)):
- Class A (Fully Insured) HSE Employee (LGSS 1986 Officer Terms) will integrate the State Pension Contributory (SPC):
- Calculate 3 1/3rd (3.3333) of the current rate of SPC, and multiply this amount by 52.18 to obtain the per annum threshold. Your pensionable remuneration that is less than or equal to this amount will be multiplied by 1/200 which will be multiplied again by the total number of years in reckonable service PLUS
- Any portion of your pensionable remuneration which exceeds the SPC amount above (SPC x 3.3333 x 52.18) will be multiplied by 1/80, also multiplied by the number of years in reckonable service
Scheme member retires with 34.5 years' service on a pensionable renumeration of €50,000.
1/200th x €44,057.31 * x 34.5 = €7,599,89, plus
1/80th x €5,942.69 x 34.5 = €2,562.79
Pension= €10,162.68 p.a.
*SPC = €253.30 x 52.18 x 3.33333 = €44,057.31
- Calculate 1/80th of pensionable remuneration times the number of years in reckonable service prior to 27th May 1977
- Calculate 3 1/3rd (3.3333) of the current rate of SPC, multiplied by 52.18 to obtain p/a threshold. Your pensionable remuneration that is less than or equal to this amount will be multiplied by 1/200 which will be multiplied again by the total number of years in reckonable service post 27th May 1977
- Any portion of your pensionable remuneration which exceeds the SPC amount above (SPC x 3.3333 x 52.18) multiplied by 1/80, multiplied by the number of years in reckonable service post 27th May 1977
Scheme member retires with 34.5 years' service, 6 years of which pre-dated 27 May 1977, on a pensionable renumeration of €50,000.
1/80th x €50,00 x 6 = €3,750, plus
1/200th x €44,057.31* x 28.5 = €6,278.17, plus
1/80th x €5,942.69 x 28.5 = €2,117.08
Pension = €12,145.25 p.a.
*OAP = |253.30 x 52.18 x 3.33333 = €44,057.31
- Calculate 1/80th of your pensionable remuneration times the number of years in reckonable service
Scheme member retires with 34.5 years' service on a pensionable renumeration of €50,000.
1/80th x €50,000 x 34.5 = €31,562.50
Pension = €21,562.50 p.a.
Other Benefits:
- Ill-Health Retirement: You may be able to retire early based on ill-health, subject to certain conditions. You will be granted a pension and a lump sum provided you have a minimum of 5 years employment, and the amount of benefits you receive will be calculated as normal. As well as the actual number of years in service, you may be granted a notional period of service, which also takes account of your age at the date of retirement.
- Death-In-Service Gratuity: If you die whilst in service, a gratuity will be paid out to your representative in the amount of:
- A lump sum equal to what would have been payable to you if you retired based on ill-health at the date of death OR
- One year’s pensionable remuneration (pro-rata to WTE) OR
- In the case of a HSE employee with LGSS Non-Officer Terms, 97.43% of second point of the craftsmen’s salary scale, pro-rated for part-time staff to reflect the working/attendance pattern on the last day of pensionable service whichever is the greater
- Spouses & Children’s Contributory Pension Scheme: You are obligated to contribute towards this scheme which will pay out benefits to your spouse and/or children in the event that you die whilst in service or qualify for a pension or preserved pension. If you die whilst in service or retire on ill-health grounds, your spouse and children will receive will receive the pension attributable to you should you have remained in employment up to the age of 60 (or 65 for some with certain LGSS terms). In all other circumstances, your spouse and children will receive an amount that is calculated based on your actual pension entitlement:
Additional Voluntary Contributions (AVCs):
| Details of Dependants | Minimum Fraction of Member's pension payable to spouse/civil partner | Fraction of member's pension payable to children (to be devided equally between all children) | Total fraction of member's pension payable |
| Spouse/civil partner | One-half | One-half | |
| Spouse/civil partner and 1 child | One-half | One-sixth | Two-thirds |
| Spouse/civil partner and 2 children | One-half | One-third | Five-sixths |
| Spouse/civil partner and 3 or more children | One-half | One-half | Two whole |
| 1 child | One-third | One-third | |
| 2 or more children | One-half | One-half |
Additional Voluntary Contributions can be made by you in order to accumulate extra funds for your retirement whilst availing of tax, DIRT and PRSI relief on those savings. You are allowed to make AVCs if the benefits you will receive at retirement from the Main Scheme as well as any other benefits from other sources of employment do not exceed the maximum amount set by Revenue. You are free to make single/once-off or regular contributions and the amount of each contribution is determined freely by you. Deductions can be made at source through your payroll department.
Read more: HSE Employee superannuation scheme and grade statement
