HSE Single Public Service Pension Scheme
The Single Public Service Pension Scheme (the Single Scheme) is a defined benefit pension scheme based on career-average pay. This scheme applies to all first-time entrants to the public service who commenced employment in pensionable positions on or after 1st January 2013. Former public servants returning to service on or after this date following an absence of more than 26 weeks are also members of this scheme.
Key Points:
- Variety of benefits available:
- Lump sum on retirement
- Pension on retirement
- Death-in-service gratuity
- Spouses’ and children’s pension (with CPI-linked indexation for children)
- Early retirement options
- Benefits accrue each year based on your salary level for that year. They are re-valued each year to retirement to reflect changes in the Consumer Price Index (CPI)
- A ‘vesting period’ of two calendar years applies – this is the amount of time you must remain in employment for in order to be eligible to receive the Single Scheme benefits. If you cease employment before this time, you can request a refund of your contributions that will be adjusted for tax paid. If you return to service within 24 months of departure and repay the contributions along with the applicable interest, the said amounts (‘referral amounts’) will be restored and will be counted towards your retirement benefits
Contributions:
- Standard member contribution rates: 3% of pensionable remuneration and 3.5% of net pensionable remunerations
*Calculation of Single Scheme contributions is based on pay received in the calendar year, and not on the annual salary scale point. Any periods at year end during which pay is earned but not received in that year due to payroll timing will see contributions in respect of that period paid for in the next calendar year*
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.
Referable amounts each year will reflect payments made [including allowances] in that year.
Retirement Age:
- Min pension age: 66 (rising to 67 and 68 in line with State Pension changes). Minimum pension age is equivalent to the normal retirement age as set out in the law
- Option to retire early at age 55 however your benefits will be reduced consequentially
- If you leave the public service before normal retirement age but have completed the vesting period then your benefits will be preserved and also modified in accordance with CPI changes
Compulsory Retirement Age: 70
Your pension may increase after you retire in line with inflationary increases, subject to approval given by the Minister for Public Expenditure & Reform
Retirement Benefits – Lump Sum:
3.75% x your full-time gross pensionable remuneration x your % work pattern (100% if working full-time)
Retirement Benefits – Pension:
- Calculate 3.74 of the current rate of SPC (make sure to adjust for your pay frequency). Your pensionable remuneration that is less than or equal to this amount will be multiplied by 0.58% which will be multiplied again by your % work pattern PLUS
- Any portion of your pensionable remuneration which exceeds the SPC amount above (SPC x 3.74) multiplied by 1.25%, multiplied by your % work pattern
- SPC calculation: SPC rate x your pay frequency
Currently, the SCP threshold (3.74 x €253.3) is as follows;
- If paid weekly: €947.34
- If paid fortnightly: €1894.68
- If paid monthly: €4119.36
Example: Full-time member
Tom has an annual gross pensionable remuneration of €60,000. He is working full time, meaning his % work pattern is 100%. Pension benefits are as follows:
Example: Part-time member
Sarah has actual gross pensionable earnings of €36,000 each year. She is working part-time for three full days a week, this means that Sarah is working 60% of the hours of a full-time colleague and her earnings reflect this. Pension benefits are as follows;
Inflationary effects on Single Scheme benefits:
The Single Scheme allows for your pension and lump sum benefits to be up-rated or increased in line with increases in the Consumer Price Index (CPI). Referable amounts accrued in a calendar year are up-rated at the end of the next calenadr year. For example, referable amounts accrued in 2019 will qualify for CPI up-rating at the end of 2020 and as such, your 2019 end-of-year position statement will not account for any CPI increases accrued or added on to your pension benefits. Note that any decreases in CPI will not be reflected in your referable amounts and thus, there will be no adjustments made to them in the next calendar year.
Other Benefits:
- Death Gratuity: This is 2x your pensionable remuneration in the last 12 months before your death. The Death Gratuity would be reduced by any lump sum already paid or payable from the Scheme or any other pre-existing public service Pension Scheme. The Gratuity is payable to your legal personal representative.
- Spouse’s or Children’s Annual Pension: Your spouse/civil partner may be entitled to half of your pension if you had been retired or discharged on medical grounds at the time of your death. An eligible child (under the age of 16 or under the age of 22 if in full-time education) may also receive a child’s pension in the event of your death.
Read more: Updated-Member-Booklet_ENG-NOV-2022.pdf (singlepensionscheme.gov.ie)
HSE_Single_Public_Service_Pension_Scheme_FAQs_Document_V2022.pdf
