forgot password / new user


June 2017

What the Draft Public Service Stability Agreement says about pensions

285 x 270

What the Draft Public Service Stability Agreement says about pensions

If the draft agreement is accepted the Pension Related Deduction (PRD) will be reduced but the remainder will be renamed as Additional Superannuation Contribution (ASC) and will be made permanent.

PRD thresholds, bands and rates will be modified in the ASC to reflect different pension benefits. For pre-2013 scheme members this will be a reduction of €575. For post2013 scheme members this will be a reduction between €375 and €2,109.

The remaining ASC will range between 0.8% of salary for a teacher in the pre-2013 scheme earning €37,500 and 5.95% for a teacher earning €82,500. For teachers in the post 2013 scheme the remaining permanent ASC will be 0.27% for teachers earning €37,500, and 1.65% for a teacher earning €67,500.

Some examples of the proposed changes:

 

Sample PRD changes for teachers in pre 2013 pension scheme

Salary

PRD at 01/09/2017

ASC at 01/10/2020

Restoration

€35,602

€685

€110

€575

€48,150

€1,940

€1,365

€575

€57,506

€2,875

€2,300

€575

€66,869

€3,846

€3,271

€575

Sample PRD changes for teachers in post 2013 scheme

Salary

PRD at 01/09/2017

ASC at 01/10/2020

Restoration

€35,602

€685

€37

€648

€48,150

€1,940

€455

€1,485

€57,506

€2,875

€766

€2,109

€66,869

€3,846

€1,089

€2,757


The INTO Executive set out to protect pension benefits and ensure that any increased contribution to pensions reflected the different benefits in the pre and post 2013 schemes. These objectives have been largely achieved. However, the increased pension contributions are substantial.


Date: Wednesday, 21 June 17