April 2023.
Pension Scheme for
Special Needs Assistants
Handbook
2
Note
This handbook is not a legal interpretation of existing superannuation provisions for
Special Needs Assistants, nor does it purport to deal with every query that may
arise. Care has been taken to ensure that it is accurate but nothing can override the
rules of the Scheme, as set out in relevant Statutes (including the Taxes
Consolidation Act 1997), Regulations and other official documentation.
3
Preface
This handbook relates only to the Pension Scheme for Special Needs Assistants.
Information about the Single Public Service Pension Scheme, which applies to public
servants recruited since the start of 2013, can be found at
https://singlepensionscheme.gov.ie/
Pensions Unit (Department of Education)
4
CONTENTS
Membership
1. Membership
Benefits and Conditions for Benefits
2. Overview of benefits
3. Factors that determine benefits
4. Rate of PRSI
5. Contributions
6. Qualifying conditions for benefits
Pensionable Service
7. Reckonable service for benefits
8. Reckonability of wholetime service
9. Reckonability of part-time service, including prior part-time service not
pensionable at the time
10. Work-sharing and job-sharing service
11. Career break
12. Unpaid leave
13. Previous service in the public sector
14. Purchase of notional service to increase or maximize benefits
Retirement Age and Pension Calculations
15. Retirement age and minimum pension age
16. Pensionable remuneration
17. Retirement lump sum calculation
18. Pension calculation
19. Retirement from part-time employment
5
20. Supplementary Pension
21. Resignation from service
22. Preserved benefits
23. Cost Neutral Early Retirement
24. Retirement on medical grounds
25. Gratuities
Death Benefits
26. Death in service and death after leaving service
27. Survivors’ and Children’s Benefits
Application for and Payment of Benefits
28. Application for benefits (including declarations)
29. Payment of pensions
Miscellaneous Provisions
30. Abatement of pension
31. Implications of the Family Law Acts
32. Dispute resolution and appeals
33. Pension Adjustments
34. Tax relief on superannuation contributions
35. Taxation
36. Chapter 4 of the Public Service Pensions (Single Scheme and Other
Provisions) Act 2012 in so far as it relates to the Pension Scheme for Special
Needs Assistants
Appendix 1: Cost Neutral Early Retirement – tables of actuarial reduction factors
Appendix 2: Notional Service Purchase – tables of contributions payable
Appendix 3: Notional Service Purchase – tables of actuarial reduction factors
6
Pension Scheme for Special Needs Assistants
Membership
1. Membership
1.1 Membership of the Pension Scheme for Special Needs Assistants (SNA
Scheme) is compulsory for Special Needs Assistants who are employed by a
primary, secondary or community & comprehensive school, and who are not
members of the Single Public Service Pension Scheme (see section 1.3).
1.2 In addition to retirement benefits for members, the SNA Scheme also provides
pensions for the survivors and/or dependant children of members who die in service
or after qualifying for a pension or preserved pension.
1.3 In general, persons whose employment as Special Needs Assistants began
on or after 1 January 2013 are members of the Single Public Service Pension
Scheme. Information on that scheme can be found at
www.singlepensionscheme.gov.ie
7
Benefits and Conditions for Benefits
2. Overview of Benefits
2.1 The benefits provided by the Pension Scheme for Special Needs Assistants
are as follows:
Retirement lump sum and pension (sections 17 and 18)
Preserved pension and lump sum – for qualifying members who resign before
minimum pension age (section 22)
Cost Neutral Early Retirement – this facility enables payment of actuarially
reduced pensions and retirement lump sums to members who wish to retire
up to 10 years before minimum pension age (section 23)
Medical grounds retirement – lump sum and pension (section 24)
Death gratuity (section 26)
Survivors’ and Children’s Pensions (section 27)
8
3. Factors that Determine Benefits
3.1 Superannuation benefits in the SNA Scheme are dependent on several
factors, the most important of which are as follows:
Reckonable Service, which includes:
o actual pensionable service (years and days worked)
o notional service, which may be purchased
o ill-health added years, in qualifying cases of retirement on medical
grounds
Pensionable Remuneration, which is essentially salary level at the time of
retirement, resignation, or death in service
3.2 All SNA Scheme members must pay the appropriate contributions (see
section 5).
9
4. Rate of PRSI
4.1 All Special Needs Assistants pay PRSI at the full rate – PRSI Class A.
10
5. Contributions
Definitions and calculation
5.1 Members pay contributions in the SNA Scheme as follows:
(a) For personal scheme benefits:
(i) 1.5% of gross pensionable remuneration
PLUS
(ii) 3.5% of net pensionable remuneration
PLUS
(b) For dependant benefits (Survivor’s and Children’s benefits):
1.5% of net pensionable remuneration.
Gross pensionable remuneration means salary expressed on a full-time working
basis.
Net pensionable remuneration (also known as co‐ordinated pay) means gross
pensionable remuneration less twice the maximum personal rate of State Pension
(Contributory) (SPC).
5.2 Therefore the total contributions deducted from Scheme members are as
follows:
1.5% of gross pensionable remuneration
PLUS
5.0% of net pensionable remuneration
Calculation in the case of work-sharers, job-sharers and part-time members
5.3 When members work on a part-time basis (including work-sharing and job-
sharing), they pay contributions on a pro rata basis. This means that the total
contribution due from such a member is calculated by:
working out first the amount the member would pay if working full-time (see
section 5.1 above); and
then applying to that amount the particular work pattern (e.g. 50%, 80%)
which describes the member’s contracted or rostered attendance (FTE).
Examples
5.4 Member pension calculations are shown in two examples below. Note that the
State Pension (Contributory) rate used throughout this Handbook is €248.30, the
weekly payment rate as of 1 January 2021.
11
Example 1:
A Special Needs Assistant working full-time on a salary of €35,845 pays
contributions worked out as follows:
Gross pensionable remuneration = €35,845
State Pension (Contributory) = €12,956 [€248.30 (weekly) x
52.18]
State Pension x 2 = €25,913
Net pensionable remuneration = €35,845 – €25,913 = €9,932
1.5% of gross pensionable remuneration = €538
5.0% of net pensionable remuneration = €497
Total contribution due = €1,035 (€538 + €497)
Example 2:
A part-time Special Needs Assistant with work pattern of 60% is paid on the basis
of an annual salary, expressed in full-time terms, of €34,726. She pays contributions
calculated as set out below. Note that the calculation method first works out the total
contribution due as if she was working full-time, and only then applies a 60% pro-rata
reduction based on her work pattern.
Gross pensionable remuneration (salary)= €34,726
State Pension (Contributory) = €12,956 [€248.30 (weekly) x
52.18]
State Pension x 2 = €25,913
Net pensionable remuneration = €34,726 – €25,913 = €8,814
1.5% of gross pensionable remuneration = €521
5.0% of net pensionable remuneration = €441
Total contribution before pro-rata adjustment = €962 (€521 + €441)
Total contribution due applying 60% pro-rata= €577
12
6. Qualifying Conditions for Benefits
6.1 For an SNA Scheme member leaving employment on or after 2 June 2002,
qualifying service is a minimum period of two calendar years’ service, regardless
of whether attendance is full‐time, work-sharing, job-sharing or regular part‐time. For
example, 1 September 2010 to 31 August 2012 is two calendar years. Transferred
service and prior reckonable service also count towards qualifying service. This
qualifying service period of two calendar years is also known as the vesting period.
It is the required minimum service to be eligible for Retirement Benefits, but not for
Death in Service Benefits.
6.2 Prior to 2 June 2002, qualifying service was defined as a minimum period of
five years’ actual pensionable service. In measuring actual pensionable service,
part-time work counts only pro rata to, or in proportion to, full-time service. This
means, for example, that six years’ part-time service on a 50% work pattern is three
years’ actual pensionable service.
13
Pensionable Service
7. Reckonable Service for Benefits
7.1 The following service is reckonable for benefits:
Pensionable service in the Pension Scheme for Special Needs Assistants
Temporary wholetime service which is pensionable on an ongoing basis, or
temporary wholetime service which was not pensionable when the service
was given but can now be reckoned for pension purposes
Part‐time service (see section 9)
Transferred service
Additional or added service in respect of ill‐health added years (see section
24) or the purchase of added years under the Notional Service Purchase
Scheme (see section 14)
Certain service in respect of which the member may have already received a
gratuity or refund of contributions
7.2 For service to be reckonable, the appropriate contributions must be paid.
7.3 From 28 July 2012 onwards, the aggregate of a public servant’s reckonable
service for superannuation purposes across all public service pension schemes
(excluding the Single Scheme) cannot exceed 40 years. This is subject to the
exception that if, on 27 July 2012 service in excess of 40 years has been earned in
more than one public service pension scheme, the service is capped at the service
accrued on that date. For further details of this service cap see section 36.2.
14
8. Reckonability of Wholetime Service
8.1 Wholetime Service is reckonable based on the number of years and days the
member is employed for.
Example:
A member working in a full‐time capacity is employed from 1 September 2003 to 31
December 2020. This is reckonable as follows:
1 September 2003 to 31 August 2020 = 17 years
1 September 2020 to 31 December 2020 = 122 days
In this case, the reckonable service for pension benefit purposes is 17.3342
years. This is calculated as follows:
Complete years: 17
PLUS
Part-years: (122 / 365) = 0.3342
Note that the divisor for part-years is always 365, not 365.25.
8.2 Contributions are paid on an ongoing basis for permanent wholetime service.
15
9. Contributions for Part-time Service, Including Prior Part-time
Service Not Pensionable at the Time
9.1 When members currently work on a part-time basis (including work-sharing
and job-sharing), they pay contributions on a pro-rata basis. This means that the
total contribution due from such a member is calculated by:
working out first the amount the member would pay if working full-time (see
sections 5.1(a) and (b) above);
then applying to that amount the particular work pattern (e.g. 50%, 80%)
which applies to the member.
9.2 The cost of reckoning prior part-time service is as follows:
1.5% of current wholetime equivalent pensionable pay
plus 3.5% of current net pensionable remuneration (current co-ordinated pay)
for each year and part thereof of reckonable prior part-time service calculated on
pensionable salary at date of application.
9.3 Outstanding contributions due in respect of earlier service which is recognized
as pensionable are deducted from the retirement lump sum.
9.4 The calculation of contributions due in respect of earlier service does not
include contributions due for survivors’ and children’s (S&C) benefits. A member can
opt to pay additional S&C contributions of 1.5% of net pensionable remuneration
over the corresponding period of service (i.e. matching period of service to be
reckoned). If the member does not so opt, then 1% of retirement salary for each year
or part thereof of S&C liability will be deducted from the retirement lump sum.
16
10. Work-sharing and Job-sharing Service
10.1 Work-sharing/job‐sharing means that a member works less hours than a
wholetime comparator (i.e. the hours worked are reduced for the period of work-
sharing or job-sharing). In accordance with the provisions of the SNA Scheme, a
work-sharer/job‐sharer is credited with pro‐rata pensionable service in respect of
each year of work sharing/job‐sharing service. If a work sharer/job‐sharer retires
whilst on reduced hours, pension benefits are based on the wholetime equivalent
of their salary at retirement.
17
11. Career Break
11.1 Career breaks are not reckonable for pension purposes because they are
periods of unpaid leave. However, a Pension Scheme member who has at least nine
years’ potential service by age 65 can purchase service in respect of their career
break in accordance with the limits in section 14. There are two ways in which a
member can purchase service in order to make the period of their career break
reckonable for pension purposes.
(a) When a member returns to employment:
A member can opt to purchase the career break by purchasing notional
service for the same period of service (or less). The contribution due may be
made either by lump sum payment, or by periodic contributions from salary
where the member decides to purchase at least one year. An option to
purchase by lump sum must be made within six months of returning to duty.
The cost of the lump sum payment will be based on the member’s salary at
the date the option is made, and the rate will be calculated on the age next
birthday in accordance with the notional service purchase tables in Appendix
2.
(b) Purchasing the service loss while on a career break:
The service loss while on a career break may be purchased while on the
career break. In this case, the contribution will be based on the rate of salary
on the last date of paid service prior to the commencement of the career
break and will take account of any changes in salary that may arise during the
career break. The rate of contribution is based on the lump sum purchase
rates in accordance with the notional service tables in Appendix 2 and is
determined by the member’s age next birthday at the time the quarterly
payment due is being calculated. There are two different rates, and the rate
applying will depend on whether the member’s minimum retirement age is age
60 or age 65. In the case of a new entrant (member appointed on or after 1
April 2004 – see section 15.3), the only rates available are the rates in the
purchase-to-age-65 table, labelled Table B at Appendix 2. This is due to the
minimum retirement age being 65 for new entrants.
18
12. Unpaid Leave
12.1 Unpaid leave or sick leave paid at the Temporary Rehabilitation
Remuneration (TRR) rate is not reckonable for pension purposes. During such
periods of leave the member was not receiving any salary, and therefore
superannuation contributions were not deducted.
12.2 Examples of non‐reckonable unpaid periods of leave or absence are: unpaid
parental leave, unpaid maternity leave, career breaks, special leave without pay and
strike days.
19
13. Previous Service in the Public Sector
13.1 Prior public service is normally transferable into the SNA Scheme, subject to
the rules of the Public Sector Transfer Network. Where contributions in respect of the
earlier service are outstanding, these must be repaid to the current employer in
accordance with the Transfer Network rules.
13.2 If the member received a refund of contributions from any public sector body
in the Public Sector Transfer Network in lieu of any retirement benefits, the member
can re‐instate this service by paying the appropriate contributions ((i.e. repaying the
adjusted gross refund received) to the current employer. In the event that PRD
(Pension Related Deduction) or ASC (Additional Superannuation Contribution)
deductions were also returned to the member on ceasing employment then this
amount must be repaid, plus compound interest, to the former employer in order to
re-instate the service.
13.3 If the member had previous service in another public body that was not
pensionable at the time of their employment but would have been pensionable had
the member still been employed in that organisation (i.e. part‐time service), then this
service may be transferred via the Public Sector Transfer Network and reckoned on
payment of the appropriate contributions due. Such transfer is permitted whether or
not the member is vested.
13.4 The transfer option only applies to organisations that are part of the Public
Sector Transfer Network or the Local Government Transfer Network. The Public
Sector Transfer Network is administered under rules set by the Department of Public
Expenditure and Reform. The Department of Public Expenditure and Reform
maintains a list of organisations approved for participation in the Public Service
Transfer Network.
20
14. Purchase of Notional Service to Increase or Maximise
Benefits
14.1 There is a Notional Service Purchase Scheme that allows members who do
not have a full pension at retirement to purchase additional years to make up some
or all of the difference.
Purchase Conditions and Rates
14.2 There are limitations on the amount of service that can be purchased.
Actual Reckonable service (including
transferred service and prior actual
service which was “bought back”,
but excluding purchased notional
and notional added years) which the
member would have if remaining in
service until age 60 or 65 as
appropriate (FTE Years)
Maximum service which can be
purchased
20 years or more
Difference between 40 years and
reckonable service at age 60 or 65 as
appropriate
19 years
17 years
18 years
15 years
17 years
13 years
16 years
11 years
15 years
9 years
14 years
7 years
13 years
5 years
12 years
4 years
11 years
3 years
10 years
2 years
9 years
1 year
The limits above are subject to the overriding restriction that the amount of
service which is reckonable plus the notional service being purchased does
not exceed 40 years.
14.3 Contribution rates vary by reference to age. Rates also depend on whether
purchase is by reference to age 60 (only applicable to staff employed prior to 1 April
2004) or to age 65. The purchase rates are set out in Appendix 2.
21
14.4 Members who wish to purchase notional service must fulfil the following
conditions:
(a) Must be in service.
(b) Must have at least nine years’ actual pensionable service (i.e. excluding
notional service) to age 60 or 65 as appropriate.
(c) Cannot be on sick leave, on special leave without pay, or suspended from
duty (with or without pay) or likely to retire on medical grounds.
Purchase options
14.5 There are two methods of purchase for notional service:
(a) Periodic deductions
This involves paying additional contributions from
salary, each payment based on the rate applicable at
the member’s age next birthday and continuing up to
age 60 or 65 as applicable. As it is based on a fixed
percentage, the amount of payment will increase
according as salary increases. This option can be
made at any time up to two years before the
appropriate retirement age
(b) Lump sum
contribution
This involves paying a once-off contribution based on
salary at the time the option is exercised, with the rate
based on the member’s age next birthday. This option
can be made once in a calendar year provided that the
amount is 10% or more of gross pay
14.6 With regard to the age-purchased-to, the position of members who otherwise
meet the conditions for purchase of notional service is as follows:
Members who are not new entrants can purchase to age 60 or to age 65.
Members who are new entrants can purchase to age 65 only.
See section 15.3 for the definition of new entrant.
Part-time working and unpaid absence
14.7 Where a member is paid less than full salary for any period, contributions are
calculated and deducted as if full salary was payable for that period. However, no
deductions are made during any unpaid periods of absence – in such cases the
service credit in respect of purchased service is reduced using a set formula.
Purchase examples
14.8 Two example cases of purchase of notional service are set out below:
Example 1:
A member wishes to purchase one year of notional service at age 52. The member
has a salary of €40,590 per annum and commenced service prior to 1 April 2004 (i.e.
is not a new entrant – see section 15.3).
22
Option
Retirement
age
Rate applicable at age
53
Cost of purchase
Periodic
deduction
65
0.29% of gross salary
plus 1.87% of net
salary*
(€40,590 x 0.29%) +
((€40,590 – €25,913) x
1.87%)
= €392.17 p.a. (initial cost**)
until age 65
Periodic
deduction
60
0.51% of gross salary
plus 3.74% of net
salary*
(€40,590 x 0.51%) +
((€40,590 – €25,913) x
3.74%)
= €755.93 (initial cost**) p.a.
until age 60
Lump Sum
65
22.5% of salary
€40,590 x 22.5% =
€9,132.75
Lump Sum
60
26.0% of salary
€40,590 x 26.0% =
€10,533.40
* Net salary is gross salary less twice the annual State Pension (Contributory) (SPC)
rate. The weekly SPC rate is €248.30 (rate at May 2021) therefore the offset is
€248.30 x 52.18 x 2 = €25,913 per annum.
** Since it is a percentage-basis contribution, the initial annual cost will rise over the
course of the purchase agreement according as salary increases. The annual cost
will also be affected by any changes in the rate of State Pension (Contributory).
Example 2:
A member wishes to purchase one year of notional service at age 44. The member
has a salary of €34,726 per annum and commenced service after 1 April 2004 (i.e. is
a new entrant – see section 15.3).
Option
Retirement
age
Rate applicable at
age 45
Cost of purchase
Periodic
deduction
65
0.17% of gross salary
plus 1.13% of net
salary*
(€34,726 x 0.17%) +
((€34,726 – €25,913) x
1.13%)
= €158.62 p.a. (initial cost**)
until age 65
Lump
Sum
65
28.0% of salary
€34,726 x 28.0% =
€9,723.28
As this member is a new entrant, he or she can only purchase notional service by
reference to age 65 since this is the minimum age for pension payment.
23
* Net salary is gross salary less twice the annual State Pension (Contributory) (SPC)
rate. The weekly SPC rate is €248.30 (rate at May 2021) therefore the offset is
€248.30 x 52.18 x 2 = €25,913 per annum.
** Since it is a percentage-basis contribution, the initial annual cost will rise over the
course of the purchase agreement according as salary increases. The annual cost
will also be affected by any changes in the rate of State Pension (Contributory).
Cancelling a notional service purchase contract
14.9 A periodic purchase option cannot be completely revoked once payments
have commenced. However, a member who wishes to cease making periodic
contributions can do so by giving notice, in writing, of his or her intention to cancel
the purchase agreement. The deductions from salary will cease from the next
available salary payment. The service credit accrued up to that date is calculated by
the formula:
A X B
C
where:
A = the number of years of notional service which the member originally opted
to purchase;
B = the period during which periodic contributions have been made; and
C = the total period during which periodic contributions should have been
made had the member completed the purchase agreement.
14.10 The formula at section 14.9 is also used to calculate the service credit taking
account of missed contributions during a periodic purchase agreement (e.g. due to a
period of special leave without pay) or retiring or leaving before the purchase
contract period has been completed.
14.11 The example below shows how purchase contract cancellation works:
Example
A member commenced purchase of 4 years of notional service from 30 April 2014 by
periodic contributions up to age 65. The original purchase contract was for 14 years
and was cancelled with effect from 1 December 2020.
The purchase of 4 years is reduced by use of the formula at section 14.9 above,
which calculates the member’s service credit as follows:
A = 4.0000
B = 6.5890 (30 April 2014 to 30 November 2020)
C = 14.0000 (30 April 2014 to 29 April 2028)
4.0000 x 6.5890 = 1.8826 years credited
14.0000
24
If the member in this example retires prior to age 65, a further reduction will be made
in accordance with the actuarial reduction factors in the tables at Appendix 3.
Actuarial reduction resulting from early drawdown of pension
14.12 If a member retires prior to age 60 or 65 (whether in the ordinary course, on
medical grounds or on CNER terms), the formula at section 14.9 is also used to
take account of missed contributions due to an earlier retirement.
14.13 Where a member who is purchasing notional service:
(i) retires on medical grounds with an immediate pension;
(ii) retires on pension between ages 60 and 65 in the case of a member with a
preserved age of 60 purchasing to age 65; or
(iii) retires on Cost Neutral Early Retirement (CNER) terms in the case of a
member with a preserved age of 60 who is purchasing by reference to age 65,
there will be an actuarial reduction using the appropriate Table (purchase to age 65
Table or purchase to age 60 Table) at Appendix 3. Each of these three case
categories is considered further below:
(i) Purchasing member retires on medical grounds with an immediate pension.
Example
An SNA Scheme member with preserved pension age of 65 years retires on medical
grounds at age 57. She has a salary of €40,590. At the time of retirement, she has
17 years’ actual service, and has completed 2.5 years of a periodic payment-of-
service agreement, in which she contracted to buy 3 years’ service.
The formula at 14.9 is applied to determine the amount of purchased service which
should be included for calculating her pension benefits:
A X B =
C
3 [years contracted to buy] X 2.5 [years during which payments were
made]
10 [total years of payment had full payment been completed]
Therefore 0.75 years purchased service is added to the SNA’s actual service of 17
years, so that a total of 17.75 years’ service is used to calculate her pension and
lump sum.
(ii) Purchasing member retires on pension between ages 60 and 65 in the case
of a member with a preserved age of 60 purchasing to age 65
Example
An SNA Scheme member with preserved pension age of 60 retires on her 63
rd
birthday. She has a salary of €40,590. At the time of retirement, she has 19 years’
25
actual service, and has completed 6 years of a periodic payment-of-service
agreement, in which she contracted to buy 2 years’ service.
The formula at 14.9 is applied to determine the amount of purchased service which
should be included for calculating her pension benefits:
A X B =
C
2 [years contracted to buy] X 6 [years during which payments were
made]
8 [total years of payment had full payment been completed]
Therefore 1.5 years purchased service is added to the SNA’s actual service of 17
years, so that a total of 18.5 years’ service is used to calculate her pension and lump
sum.
(iii) Purchasing member
retires on Cost Neutral Early Retirement (CNER) terms in the case of a member
with a preserved age of 60 who is purchasing by reference to age 65,
For the CNER case type at (iii), the purchase actuarial reduction will reduce the
purchased element of service by applying the reduction factors from the age-60
(“Age last birthday”) row of the purchase to age 65 table at Appendix 3. The
purchased service element, reduced in this way, will then be added to actual service.
Only then will the separate reduction factors relevant to CNER (see section 23) be
applied to the resultant total service.
Purchase of service by work-sharing / job-sharing / part-time members
14.14 Purchase of service by members who do not work full-time is subject to the
following conditions:
(a) Work-sharing, job-sharing or part‐time members who have completed at least
two years’ consecutive service in such work patterns may, subject to the
normal purchase scheme rules, consider purchasing service on the
assumption that they will continue to work in that pattern to the appropriate
retirement age. The maximum amount of service which may be purchased is
determined by the scheme rules in the normal way.
(b) Where there is an increase in the working pattern of the part‐time member or
if the work/job-sharing member resumes full‐time work, and as a result of any
such change, the service purchased or being purchased exceeds the amount
required to bring the member’s potential reckonable service, by age 60 or 65,
as appropriate, to 40 years, then the contribution rate(s) must be adjusted (or
purchase contributions cancelled altogether if required) and any excess
26
contributions (including all contributions if necessary) should be refunded
through the payroll system.
Refunds of notional service
14.15 Payments made for purchased service – whether by periodic or lump sum
contributions – are refundable through the payroll system and only in the following
limited circumstances:
where a member resigns, does not qualify for superannuation benefits, and
does not transfer his or her service to another employment;
where a member who is purchasing service leaves before attaining the
minimum service requirement of nine years. In that situation all purchase
contributions must be refunded. If a member who is purchasing service leaves
the employer having attained nine years’ service but before attaining the
minimum service required in the table for limitations on service to be
purchased (see section 14.2) an appropriate refund of purchase contributions
must be made for any service in excess of the limitations;
where a member, having exercised an option to purchase service,
subsequently has service transferred-in, and as a result, his or her total
service would be in excess of the maximum reckonable (40 years);
where an excess contributions instance (as described in section 14.14(b)
above) arises.
Where a member opts to work beyond the (purchase target age of 60 or 65)
and as a result will have in excess of 40 years’ service at retirement.
27
Retirement Age and Pension Calculations
15. Retirement Age and Minimum Pension Age
Minimum and compulsory retirement ages
15.1 The ages at which a Scheme member may retire with pension are shown in
the following table:
Member cohort
Retirement Age
SNAs employed in the public
sector before 1 April 2004
Normal (minimum) retirement age: 60
CNER* minimum age: 50
Compulsory retirement age: End of school
year in which age 70 is reached**
SNAs not employed in the public
sector before 1 April 2004
(see section 15.2 below)
Normal (minimum) retirement age: 65
CNER* minimum age: 55
Compulsory retirement age: None
* CNER = Cost Neutral Early Retirement – see section 23.
** This applies to SNAs in this group attaining the age of 65 after 26 December 2018.
15.2 Special Needs Assistants recruited on or after 1 January 2013 do not in
general belong to the Pension Scheme for Special Needs Assistants. Instead, they
are members of the Single Public Service Pension Scheme. Further details of that
scheme are available at www.singlepensionscheme.gov.ie.
“2004 New Entrant”
15.3 Scheme members appointed on or after 1 April 2004, who were not employed
in the public sector before that date, are "new entrants" for the purposes of
superannuation. This means that, as indicated in the table at section 15.1 above,
their normal (minimum) retirement age is 65, and they have no compulsory
retirement age. However there are some exceptions:
(a) staff on paid or unpaid leave or on secondment from public service bodies on
31 March 2004 will not be regarded as new entrants on their return;
(b) staff who received a written offer of employment prior to 1 April 2004 but had
not taken up duty by that date will not be regarded as new entrants on
accepting that appointment;
(c) staff who were employed in a temporary or seasonal capacity prior to 1 April
2004 will not be regarded as new entrants if they resume duty in the public
service within the same contract of employment;
28
(d) any public servant who was serving on 31 March 2004 and who leaves
employment but subsequently returns, within a period of 26 weeks, to
employment in the public service, will not be regarded as a new entrant;
(e) any public servant
(i) who was serving on 31 March 2004 or within 26 weeks prior to that date,
or
(ii) any public servant to whom (i) applies who leaves employment but
subsequently returns within a period of 26 weeks, to employment in the
public service;
will not be regarded as new entrants on their return.
15.4 “2004 New Entrant” as defined at section 15.3 above essentially distinguishes
between:
members of the SNA scheme who were recruited to the public sector before 1
April 2004, who are not new entrants; and
members of the SNA scheme who were recruited to the public sector from 1
April 2004 onward, who are new entrants.
It is important not to confuse this new entrant member category with membership of
the Single Public Service Pension Scheme.
29
16. Pensionable Remuneration
16.1 Pensionable Remuneration is the annual rate of incremental salary held on
the last day of service.
30
17. Retirement lump sum calculation
17.1 Retirement lump sum is 3/80ths of pensionable remuneration for each year of
reckonable service, subject to a maximum of 1½ times pensionable remuneration.
Example:
A Scheme member retires on a wholetime equivalent salary (pensionable
remuneration) of €40,590, with 40 years’ reckonable service. She receives a
retirement lump sum of €60,885, calculated as follows:
€40,590 x 40.0000 x 3/80ths = €60,885 (maximum payable)
31
18. Pension Calculation
18.1 The Pension Scheme for Special Needs Assistants is an integrated scheme.
This means that the pension at retirement is calculated with an offset in respect of
the State Pension (Contributory) (SPC) and in addition to benefits from the SNA
Scheme a member may qualify for a SPC.
Integration method of pension calculation
18.2 A revised integration method of pension calculation applies to all Special
Needs Assistants who qualify for benefits on or after 1 January 2004. The method of
calculation is as follows:
1/200th of pensionable remuneration up to 3 1/3 times SPC* x service
PLUS
1/80th of any pay balance in excess of 3 1/3 times SPC* x service
Overall reckonable service for pension benefits is subject to a maximum of 40 years.
*Note: The SPC rate is the maximum State Pension (Contributory) rate payable by
the Department of Social Protection to a single person without dependants on the
last day of the member's pensionable service.
A multiplier of 3.333333 (i.e. six decimal places) is used to calculate 3 1/3 times
SPC, which is the threshold pay level for moving from the lower (1/200) to the
higher (1/80) pension accrual rate.
Based on the 2021 weekly SPC rate of €248.30, the threshold value in annual terms
is:
(€248.30 x 52.18 x 3.333333) = €43,187.64.
Integrated pension calculation method before 1 January 2004
18.3 Prior to 1 January 2004 the method of calculation of pension for staff
appointed on or after 6 April 1995 was:
1/80th of net pensionable remuneration (pensionable remuneration minus
twice the SPC) multiplied by the number of years of reckonable service,
subject to a maximum of 40 years.
Pension calculation examples
18.4 The three examples below show the current integration method of pension
calculation (in each case the member retires on or after 1 January 2004).
Example 1:
A Special Needs Assistant retires on 31 August 2021 with the following earnings and
service.
32
Actual remuneration at retirement
=
€40,590
State Pension (Contributory) annual rate
at retirement (31 August 2021)
=
€12,956
3 1/3 x State Pension (Contributory) rate
=
€43,188
Service (actual reckonable)
=
30 years
Pension =
1/200 x pensionable remuneration up to €43,188 x service, plus
[There is no pay balance over €43,188 to which 1/80
th
would be applied]
€40,590 x 30.0000
200
=
€6,088
Total pension: €6,088 per annum
Example 2:
A Special Needs Assistant was employed full‐time for 20.00 years and then in a 50%
work-sharing capacity for 18.00 years. On retirement on 31 August 2021 her total
reckonable actual service is 29.0000 years. This 29 years’ service is comprised of 20
years from her full‐time attendance and 9 years (18 x 50% = 9) from her subsequent
period of work-sharing.
Actual remuneration at retirement
=
€20,295
State Pension (Contributory) annual rate
at retirement (31 August 2021)
=
€12,956
3 1/3 x State Pension (Contributory)
=
€43,188
Pensionable remuneration (notional full-
time)
=
€40,590
Service (actual reckonable)
=
29 years
Pension =
1/200 x pensionable remuneration up to €43,188 x service, plus
[There is no pay balance over €43,188 to which 1/80
th
would be applied]
€40,590 x 29.0000
200
=
€5,886
Total pension: €5,886 per annum
33
Example 3:
A Special Needs Assistant was employed in a 60% part-time capacity for 20 years.
On retirement on 31 August 2021 her total reckonable actual service is 12.0000
years (20 x 60% = 12).
Actual remuneration at retirement
=
€24,354
State Pension (Contributory) annual rate
at retirement (31 August 2021)
=
€12,956
3 1/3 x State Pension (Contributory)
=
€43,188
Pensionable remuneration (notional full-
time)
=
€40,590
Service (actual reckonable)
=
12 years
Pension =
1/200 x pensionable remuneration up to €43,188 x service, plus
[There is no pay balance over €43,188 to which 1/80
th
would be applied]
€40,590 x 12.0000
200
= €2,435
Total pension: €2,435 per annum
34
19. Retirement from Part-time Employment
19.1 Where an SNA retires from pensionable part-time employment, pension
benefits under the SNA Scheme are calculated on the basis of pro-rata integration.
This means that award of pension and lump sum is based on:
wholetime equivalent salary at retirement;
and
actual pensionable service, whereby the retiring SNA is given pro‐rata service
for each year of part‐time service.
Example:
A Special Needs Assistant was employed in a part-time capacity for 12 years during
which time her specific work pattern varied as shown in the table below. On
retirement on 31 August 2021 her total reckonable actual service is calculated as
being 8.05 years.
Employment dates
(School years basis)
Work pattern
(% of full-
time)
Pro-rata service
1 September 2009 – 31 August 2010
50%
0.5000 years
1 September 2010 – 31 August 2011
50%
0.5000 years
1 September 2011 – 31 August 2012
50%
0.5000 years
1 September 2012 – 31 August 2013
60%
0.6000 years
1 September 2013 – 31 August 2014
60%
0.6000 years
1 September 2014 – 31 August 2015
60%
0.6000 years
1 September 2015 – 31 August 2016
75%
0.7500 years
1 September 2016 – 31 August 2017
80%
0.8000 years
1 September 2017 – 31 August 2018
80%
0.8000 years
1 September 2018 – 31 August 2019
80%
0.8000 years
1 September 2019 – 31 August 2020
80%
0.8000 years
1 September 2020 – 31 August 2021
80%
0.8000 years
Total Service
8.0500 years
Pension Calculation:
Wholetime salary
Reckonable
Service
Pension (1/200
th
of salary up to
€43,188 for each year of
service)
€40,590
8.0500 years
€1,634 per annum
35
Lump Sum Calculation:
Wholetime salary
Reckonable
Service
Lump Sum (3/80
th
of salary for
each year of service)
€40,590
8.0500 years
€12,253
36
20. Supplementary Pension
Assumptions and related
20.1 In calculating a pension for an SNA Scheme member (and other fully insured
public servants), the State Pension (Contributory) (SPC) is factored into the
calculation. Where this happens, it is assumed that the member:
(a) is entitled to social insurance benefits, and
(b) is entitled to the maximum personal rate of such benefits.
20.2 However, the member may not qualify for social insurance benefits, or if
qualifying, may only be entitled to a reduced benefit. This can arise from insufficient
social insurance contributions. In such cases, the member may apply for a
supplementary pension, to take account of the difference between their personal
circumstances and the general assumptions on which the pension calculation is
based (see section 20(1) above).
Conditions and calculation
20.3 In order to be considered for a supplementary pension, the member must:
(a) for reasons outside of his or her control, fail to qualify for a social insurance
benefit, or qualify for a social insurance benefit only at a rate which is less
than the full State Pension Contributory (SPC) rate ;
(b) be unemployed; and
(c) other than a person in receipt of a pension on medical grounds, have reached
the minimum pension age or, in the case of a member in receipt of a Cost
Neutral Early Retirement pension (see section 23), the preserved pension
age.
If the employer is satisfied that these preconditions are met, the member may, at the
discretion of the employer and subject to the calculation at 20.4, be paid a
supplementary pension.
20.4 The supplementary pension payable (if any) is calculated by comparing:
(a) the amount of the actual SNA pension awarded to the member plus the
amount (if any) of the personal rate of State Pension (Contributory) or other
social insurance benefit (e.g. Job-seeker Benefit) payable to him or her; and
(b) the amount of the SNA pension which would have been awarded to the
member if that pension had been calculated by reference to the
calculation method for public servants whose pension is not integrated
with social insurance.
37
If (b) is higher than (a), then a supplementary pension equal to the difference
between them is payable. (b) is a “modified” Class D (PRSI) comparator case,
whereas (a) is the member’s actual SNA Scheme pension (not including any
supplementary pension), plus any social insurance benefit.
20.5 Notional service is excluded in the calculation of a supplementary pension.
Examples
20.6 The examples below show how supplementary pension eligibility is
established and how the payment rate calculated:
Example 1:
An SNA Scheme member paying Class A PRSI and with salary of €40,590 retires on
31 August 2021. She has 28 years’ service:
Pensionable remuneration
=
€40,590
State Pension (Contributory) annual rate
at retirement (31 August 2021)
=
€12,956
3 1/3 x State Pension (Contributory) rate
=
€43,188
Reckonable service
=
28 years
SNA Scheme Pension
= 1/200 x pensionable remuneration up to €43,188 x service, plus
[There is no pay balance over €43,188 to which 1/80
th
would be applied]
€40,590 x 28.0000
200
=
€5,683
Total SNA Scheme pension: €5,683 per annum
The member qualifies for a reduced-rate benefit from the Department of Social
Protection. That benefit is Jobseeker’s Benefit, payable to the member at a personal
reduced weekly rate of €159. In annual terms this amounts to €8,297.
Therefore, the total annual relevant income for the member, comprising SNA
Scheme pension and the reduced-rate Department of Social Protection benefit is:
€13,980 (€5,683 + €8,297)
Pension calculation for Class D comparator:
If the member had paid the modified rate of PRSI (Class D), then her SNA Scheme
pension would have been calculated as follows:
€40,590 (pensionable remuneration) x 28.0000 years’ service x 1/80
= €14,207
38
(This €14,207 is the pension that would be awarded to the member if her pension
was based on the calculation method for public servants whose pension is not
integrated with social insurance.)
Therefore, the supplementary pension payable is:
Pension payable based on PRSI Class D calculation
€14,207
Pension payable from the SNA Scheme, plus the reduced
rate social insurance benefit (Jobseeker’s) being received
€13,980
Supplementary pension payable
€227 (per year)
Example 2:
An SNA Scheme member paying Class A PRSI and with salary of €40,590 retires on
31 August 2021. He has 19 years’ service:
Pensionable remuneration
=
€40,590
State Pension (Contributory) annual rate
at retirement (31 August 2021)
=
€12,956
3 1/3 x State Pension (Contributory) rate
=
€43,188
Reckonable service
=
19 years
SNA Scheme Pension =
1/200 x pensionable remuneration up to €43,188 x service, plus
[There is no balance over €43,188 to which 1/80
th
would be applied]
€40,590 x 19.0000
200
=
€3,856
Total SNA Scheme Pension: €3,856 per annum
The member qualifies for a benefit from the Department of Social Protection. That
benefit is Jobseeker’s Benefit, payable to the member at the full weekly rate of €203.
In annual terms this amounts to €10,593.
Therefore, the total annual relevant income for the member, comprising SNA
Scheme pension and the Department of Social Protection benefit is:
€14,449 (€3,856 + €10,593)
Pension calculation for Class D comparator:
If the member had paid the modified rate of PRSI (Class D), then his SNA Scheme
pension would have been calculated as follows:
39
€40,590 (pensionable remuneration) x 19.0000 years’ service x 1/80
= €9,640
(This €9,640 is the pension that would be awarded to the member if his pension was
based on the calculation method for public servants whose pension is not integrated
with social insurance.)
Therefore, the supplementary pension payable is:
Pension payable based on PRSI Class D calculation
€9,640
Pension payable from the SNA Scheme, plus the full rate
social insurance benefit (Jobseeker’s)
€14,449
Supplementary pension payable
NONE
Supplementary pension on retirement under Cost Neutral Early Retirement
20.7 Supplementary pension, where appropriate, is only payable to members
availing of Cost Neutral Early Retirement (see section 23) on reaching the relevant
preserved pension age (60 or 65 years, as appropriate).
Survivor’s supplementary pension
20.8 Where a serving or retired member dies, and where his or her surviving
spouse or civil partner fails to qualify for a social welfare contributory survivor’s
pension, or if qualifying is only entitled to a reduced rate of such survivor’s pension,
then, at the absolute discretion of the Minister for Education, a survivor’s
supplementary pension may be paid under the scheme, subject to the conditions in
section 20.3.
40
21. Resignation from Service
21.1 Where a member resigns not having accrued the minimum service for
preservation of benefits (see section 22 for details), the following options may be
available.
(a) If the member intends returning to employment covered by the SNA Scheme,
then he or she need do nothing in regard to their pension contributions and,
on return will accrue further service. The earlier service will be taken into
account for calculation of benefit on ultimate retirement.
(b) If moving to another body that participates in the Public Sector Transfer
Network, the member may transfer the service to that body.
(c) Application by the member for a refund of the contributions paid to the SNA
Scheme. The refund currently payable is the total contributions paid less 20%
tax.
21.2 Where the member leaves service before pension age but has accrued the
minimum service for preservation of benefit, a refund of contributions is not available.
The following options are available:
(a) If the member intends returning to employment covered by this scheme, then
he or she need do nothing in regard to their superannuation contributions and,
on return will accrue further service. The earlier service will be taken into
account for calculation of benefit on ultimate retirement.
(b) If the member never returns to any public service employment, then a
preserved benefit based on the accrued service will be payable on reaching
preserved pension age. (This preserved pension age is 60 years in the case
of a person whose employment commenced before 1 April 2004, and 65
years in the case of a person who is a new entrant [see section 15.3]). NB: A
member who has left service must apply for payment of the preserved
benefits. Application should be made at least three months before
reaching pension age.
(c) Transferring Service: If moving to another public sector body that participates
in the Public Sector Transfer Network, the member may opt to transfer the
service for pension purposes to that body. A member’s decision on whether to
transfer service to the new employment or instead preserve benefit in the
former employment may be influenced by a number of factors, including
potential pay progression in the new employment and the comparative range
of benefits available in each pension scheme. The Department of Education
will not provide any advice to a member on whether to transfer service or not.
This is solely a matter for the member themselves.
41
21.3 As stated at sections 21.1(b) and 21.2(c) above, a member who ceases to be
employed as a Special Needs Assistant and who takes up employment with a body
which is a member of the Public Sector Transfer Network may have an option to
transfer SNA Scheme service into that body’s pension scheme. Please note however
that such transfer is not possible where, on subsequently joining a public service
body, the person is a member of the Single Public Service Pension Scheme.
Persons who take up employment in the public service on or after 1 January 2013
following a break of more than 26 weeks since previously being employed in the
public service normally become members of the Single Public Service Pension
Scheme. Therefore, in order for 21.1 (a), 21.1 (b), 22.2 (a) and 22.2 (c) to apply an
individual must not have a break of more than 26 weeks between public service
employment.
42
22. Preserved Benefits
Eligibility
22.1 An SNA Scheme member who:
(a) leaves the public service having completed a minimum of two years’
qualifying service (calendar years’ service – see section 6.1);
(b) has not reached the minimum pension age (see section 15);
(c) is not entitled to immediate superannuation benefits;
(d) does not avail of Cost Neutral Early Retirement; and
(e) does not transfer his or her service to another employment,
is entitled to preserved superannuation benefits payable, on application, at the
preserved pension age.
22.2 Regarding section 22.1(a) above, note that a minimum of five years’ actual
reckonable service was required for preserved benefits entitlement in the case of
resignations prior to 2 June 2002.
Benefits
22.3 The preserved benefits are:
(a) preserved lump sum and pension; or
(b) preserved ill-health lump sum and pension, if approved, prior to reaching
preserved pension age,
(c) preserved death gratuity (if the member dies before an entitlement to
preserved pension and lump sum arises);
and
(d) preserved survivors’ and children’s pensions, where applicable.
Calculation
22.4 The method of calculation of preserved benefits is as set out in sections 17
and 18. The preserved pension and preserved lump sum are based on:
reckonable service;
the member’s pensionable remuneration on his or her last day of service; and
the State Pension (Contributory) (SPC) rate on his or her last day of service;
as increased by reference to salary adjustments occurring between the date of
resignation and the date the preserved benefits become payable from.
Payment
22.5 Preserved lump sum and pension benefits are normally paid, on application,
with effect from minimum pension age. However, if before reaching that age, a
former member incurs permanent ill‐health and satisfies the ill‐health retirement
qualifying condition that if still serving, he or she would have been eligible to retire on
43
grounds of incapacity, then the preserved benefits, based on reckonable service at
the date of resignation with no ill-health added years, may be paid from the date of
the former member's application.
Death prior to payment of preserved benefits
22.6 If a former member with eligibility for preserved benefits dies before preserved
pension and lump sum become payable to him or her, a preserved death gratuity
equal to the amount of the preserved lump sum is payable, on application, to his or
her legal personal representative. A survivor’s pension may also be payable based
on the former member’s reckonable service at the date of resignation, with no ill-
health added years.
44
23. Cost Neutral Early Retirement
23.1 Cost Neutral Early Retirement (CNER) allows qualifying scheme members
retire up to ten years before preserved pension age, subject to employer approval. It
provides immediate payment of pension and retirement lump sum, both of which are
calculated by actuarially reducing the preserved benefit values that would arise if the
person was resigning on the early retirement date. This actuarial reduction, which is
described in sections 23.4 to 23.6 below, draws on tables of age-graduated
reduction factors at section 23.7. For ease of reference these tables are also set out
in Appendix 1.
Eligibility
23.2 A member who:
(i) has completed two years’ qualifying service (see section 6.1), and
(ii) at intended date of early retirement is
aged at least 50 if a preserved pension age of 60 applies, or
aged at least 55 if a preserved pension age of 65 applies,
may opt to apply for Cost Neutral Early Retirement.
23.3 The member’s application for Cost Neutral Early Retirement must be made
and approved not later than the intended early retirement date. This means that the
member must be in service in order to apply for CNER; application after resignation
is not possible. If a Scheme member resigns with preserved pension entitlements
and is subsequently enrolled in the Single Public Service Pension Scheme in a new
employment, then that person cannot apply for CNER benefits from the SNA
Scheme.
Calculation
23.4 Members whose applications are approved will have their pension and lump
sum actuarially reduced. The reduced pension and lump sum will be calculated by
applying the relevant percentages from the appropriate table at section 23.7 below to
the preserved benefit, with adjustment as necessary for exact age (years and days)
at retirement.
23.5 In adjusting for exact age at retirement, pension and lump sum will be
calculated in accordance with the following formula:
[A + ((B / 365) × (C – A))] × preserved benefit based on service
where
A is the actuarial reduction factor (pension or lump sum, as appropriate) in the
correct table below (preserved age 60 or 65), appropriate to the person’s age
at his or her last birthday,
B is the number of days since his or her last birthday, and
45
C is the actuarial reduction factor (pension or lump sum, as appropriate) in the
correct table below ((a) preserved age 60 or (b) preserved age 65),
appropriate to the person’s age at his or her next birthday. Where next
birthday is the actual preserved age then C = 100%.
23.6 Any unpaid contributions under in respect of Survivors’ and Children's benefits
must be deducted from the “preserved” lump sum. This means that the preserved
gross lump sum should first be calculated and the unpaid contributions for survivors’
and children’s benefits should then be deducted from this amount. The appropriate
cost neutral early retirement factor, as determined using the formula at section 23.5
is then applied to the resultant net lump sum. Outstanding main scheme
contributions (if any) will be deducted from the lump sum gratuity as appropriate.
CNER Reduction Factor Tables with Examples
23.7 The factors to be applied to convert preserved benefit values to actuarially
reduced benefit values are set out in the tables at Appendix 1. They are also set out,
with examples, in the Tables at (a) and (b) below:
(a) Preserved age of 60:
Persons with a preserved age of 60
Age last birthday
Pension
Lump Sum
50
62.4%
82.2%
51
65.1%
83.9%
52
67.9%
85.5%
53
71.0%
87.2%
54
74.3%
88.9%
55
77.8%
90.7%
56
81.6%
92.4%
57
85.7%
94.3%
58
90.1%
96.1%
59
94.8%
98.0%
Example 1:
A Scheme member with a preserved pension age of 60 applies for Cost Neutral
46
Early Retirement, with intended retirement date of 15 June 2021. The date of birth is
2 September 1965.
The member has 31.7863 years’ reckonable service at retirement, pensionable
remuneration is €40,590, and full-rate PRSI (Class A) applies.
The pension benefit award is calculated as follows:
Cost Neutral Pension Calculation:
Calculate the preserved pension value first:
Pension = (1/200
th
for salary up to €43,188 plus 1/80
th
for any balance above that) x
service
€40,590 x 1/200 x 31.7863 = €6,451
[no pay balance at 1/80
th
]
Total preserved pension: €6,451
The preserved pension value should then be actuarially reduced by the
percentage formula:
[A + ((B / 365) × (C – A))]
A = factor in table above relevant to age last birthday (age 55) = 77.8%
B = days since last birthday (period of 3 September 2020 to 15 June 2021) = 286
days
C = factor in table above relevant to age next birthday (age 56) = 81.6%
[77.8 + ((286 / 365) x (81.6 – 77.8))]
= [77.8 + (0.7836 x 3.8)]
= [77.8 + 2.98]
= 80.78%
Therefore pension above will be actuarially reduced under CNER as follows:
€6,451 x 80.78% = €5,211 per annum
Cost Neutral Lump Sum Calculation:
Calculate the preserved lump sum value first:
Lump sum = Pensionable remuneration x 3/80 x service
€40,590 x 3/80 x 31.7863 = €48,383
The preserved lump sum value should then be actuarially reduced by the
percentage formula:
47
[A + ((B / 365) × (C – A))]
A = factor in table above relevant to age last birthday (age 55) = 90.7%
B = days since last birthday (period of 3 September 2020 to 15 June 2021) = 286
days
C = factor in table above relevant to age next birthday (age 56) = 92.4%
[90.7 + ((286 / 365) x (92.4 – 90.7))]
= [90.7 + (0.7836 x 1.7)]
= [90.7 + 1.33]
= 92.03%
Therefore lump sum above will be actuarially reduced under CNER as follows:
€48,383 x 92.03% = €44,532 per annum
Example 1A:
In Example 1 just above, the member retires early under CNER terms with a
preserved pension age of 60. If he or she were to subsequently die leaving qualifying
dependants, then the survivors’ and children’s benefits payable to those dependants
would be calculated by reference to the preserved pension of €6,451, not the
actuarially reduced pension of €5,211.
(b) Preserved age 65:
Persons with a preserved age of 65
Age last birthday
Pension
Lump Sum
55
58.2%
82.4%
56
61.1%
84.0%
57
64.1%
85.6%
58
67.4%
87.3%
59
71.0%
89.0%
60
74.8%
90.7%
61
79.0%
92.5%
62
83.6%
94.3%
63
88.5%
96.1%
64
94.0%
98.0%
48
Example 2:
A Scheme member with a preserved pension age of 65 applies for Cost Neutral
Early Retirement, with intended retirement date of 28 May 2021. The date of birth is
5 August 1959.
The member has 15.8137 years’ reckonable service at retirement, pensionable
remuneration is €40,590, and full-rate PRSI (Class A) applies.
The pension benefit award is calculated as follows:
Cost Neutral Pension Calculation:
Calculate the preserved pension value first:
Pension = (1/200
th
for salary up to €43,188 plus 1/80
th
for any balance above that) x
service
€40,590 x 1/200 x 15.8137 = €3,209
[no balance at 1/80
th
]
Total preserved pension: €3,209
The preserved pension value should then be actuarially reduced by the
percentage formula:
[A + ((B / 365) × (C – A))]
A = factor in table above relevant to age last birthday (age 61) = 79.0%
B = days since last birthday (period of 6 August 2020 to 28 May 2021) = 296 days
C = factor in table above relevant to age next birthday (age 62) = 83.6%
[79.0 + ((296 / 365) x (83.6 – 79.0))]
= [79.0 + (0.8110 x 4.6)]
= [79.0 + 3.73]
= 82.73%
Therefore, pension above will be actuarially reduced under CNER as follows:
€3,209 x 82.73% = €2,655 per annum
Cost Neutral Lump Sum Calculation:
Calculate the preserved lump sum value first:
Lump sum = Pensionable remuneration x 3/80 x service
€40,590 x 3/80 x 15.8137 = €24,070
49
The preserved lump sum value should then be actuarially reduced by the
percentage formula:
[A + ((B / 365) × (C – A))]
A = factor in table above relevant to age last birthday (age 61) = 92.5%
B = number of days since last birthday (period of 6 August 2020 to 28 May 2021) =
296 days
C = factor in table above relevant to age next birthday (age 62) = 94.3%
[92.5 + ((296 / 365) x (94.3 – 92.5))]
= [92.5 + (0.8110 x 1.8)]
= [92.5 + 1.46]
= 93.96%
Therefore, lump sum above will be actuarially reduced under CNER as follows:
€24,070 x 93.96% = €22,616 per annum
23.8 The actuarially reduced rate applies throughout the lifetime of the
payment of a pension subject to adjustments in line with public service
pension increases, as appropriate. A member who avails of cost neutral early
retirement cannot subsequently switch to payment of a preserved pension at
normal preservation age (60 or 65 years).
Survivors’ & Children’s benefits in relation to Cost Neutral Early Retirement
23.9 Benefits payable to Survivors and Children are not affected by Cost Neutral
Early Retirement. This means that any such benefits payable in respect of a member
who retired on CNER terms will be the same as if that member had instead resigned
with preserved benefits on the date he or she retired early.
Supplementary Pension in relation to Cost Neutral Early Retirement
23.10 Supplementary pensions, where appropriate, are only payable to members
availing of Cost Neutral Early Retirement on reaching the relevant preserved pension
age (60 or 65 years as appropriate).
Cost Neutral Early Retirement and impact on purchase of notional service:
23.11 Cost Neutral Early Retirement will have an impact on the benefit derived from
purchase options. Two reductions will apply:
(i) Firstly, the relevant purchase scheme reduction arrangements, as
appropriate including
50
(a) the application in some cases of purchase scheme actuarial reduction
factors appropriate to payment of pension at preserved pension age,
and specifically in a case where a member with preserved age 60 is
purchasing to age 65 (see Appendix 3), and
(b) The application in all cases of the purchase scheme reduction
arrangements applying in the case of early cessation of periodic
contributions.
(ii) Secondly, the resultant purchased service – as reduced, if appropriate, at (a)
and in all cases at (b) – will then be added to actual service which will be used
to calculate a preserved pension and preserved Lump Sum, with the relevant
Cost Neutral Early Retirement factor only then being applied to that
preserved pension and Lump Sum.
Implications for Social Protection benefits:
23.12 Since the arrangements for securing social insurance credits may vary from
time to time, all members should check their individual situation with the Department
of Social Protection prior to availing of Cost Neutral Early Retirement. They should
also check periodically thereafter as to the up‐to‐date position. Failure to make these
checks could adversely affect any subsequent entitlement to social protection
benefits, such as State Pension or social welfare survivor’s pension.
51
24. Retirement on Medical Grounds
Procedure for applying for retirement on medical grounds
24.1 The following procedure is required to be followed in all cases of application
for retirement on medical grounds:
An application for retirement on medical grounds is made by completing two
forms:
RET.D2 (application for benefits) – which is returned to the Pension Unit,
Department of Education, Cornamaddy, Athlone, Co. Westmeath.
TMED 2 form – the member must complete the relevant part of this form and
give to his/her treating physician for completion.
The physician should complete the form and attach a confidential doctor to
doctor medical report. This is returned directly to the occupational health
service (OHS) details of which are listed on the form. It is essential that the
medical evidence submitted is comprehensive and includes all relevant
clinical details. It must address diagnosis, treatment and prognosis.
On receipt of TMED 2 (including all the necessary reports) and notification
from the Pension Unit that RET.D2 has been received, the OHS will contact
the member to arrange an appointment.
The member will attend for a medical assessment, part of which will involve
completing an assessment form.
A recommendation will issue to the Pension Unit, following medical
assessment by the OHS.
A report will be retained on file by the OHS.
The decision to approve or reject an application for ill‐health retirement is
made by the Minister for Education in their role as pension scheme provider.
The decision is based on the recommendation of the OHS. The member may
appeal the recommendation of the OHS to another occupational health
physician or service nominated by the Department. The Ill-Health Retirement
Procedures will be provided on application for ill-health retirement.
Ill-health vesting period
24.2 The ill-health vesting period means the period of service that must be attained
in order that a person approved for retirement on medical grounds can be paid an
immediate pension and retirement lump sum. The ill-health vesting period, covering
retirements on or after 1 August 2012, is five calendar years’ service.
Added years
24.3 Where a member retires on medical grounds having completed at least five
years’ actual service, notional service may be added to his or her actual service on
52
the basis set out below, so as to enhance (increase) the retirement pension and
lump sum:
Actual Service
Added years:
Between 5 – 10 years
Equivalent amount of added service subject to
potential service to age 65. Service doubled or
potential service to age 65 – whichever is the lesser.
Between 10 – 20 years
The more favourable of:
(i) the difference between actual service and 20
years subject to potential service to age 65, or
(ii) 6.6667 years subject to potential service to
age 60.
Over 20 years
As at (ii) above.
As can be seen in the above table, "potential service" to age 60 or age 65 may be a
factor in determining the amount of added service granted to a medical grounds
retiree. The calculation of this potential service for part-time members of the Pension
Scheme may be based on the working/attendance pattern at the time of retirement,
thereby delivering a lower added years award than would be the case were that
person to be a full-time attendee. In certain circumstances a different basis of
calculation may apply. In cases where a person’s contract requires them to work
fluctuating hours, or where a person’s normal working hours were reduced in the last
three years of pensionable service, a working / attendance pattern may be based on
the average annual number of hours worked in the last three years of pensionable
service. In all cases of ill-health retirement involving work-sharing members of the
Pension Scheme, Department of Public Expenditure and Reform Circular 11 of 2012
(paragraphs 19-20) should be consulted.
24.4 In the event of a member who has retired on medical grounds recovering from
an illness and returning to employment, pension will cease. On subsequent
retirement, pension and lump sum will be based on total pensionable service,
excluding the added years previously awarded on the earlier retirement on medical
grounds. In addition, the amount of lump sum paid on the retirement on medical
grounds will be recovered from the final lump sum payment.
53
25. Gratuities
Short Service Gratuity
25.1 A short service gratuity is payable to a Scheme member who retires on
medical grounds and who has at least one year of actual reckonable service but less
than the ill-health vesting period (five calendar years’ service – see section 24.2).
25.2. The amount of the short service gratuity is:
(a) 1/12th of pensionable remuneration for each year of actual reckonable
service;
PLUS
(b) 3/80ths of pensionable remuneration per year of actual reckonable service
provided that the member has served the scheme membership vesting
period (two calendar years’ service – see section 6.1).
A member with more than two calendar years’ service may opt for a preserved
benefits award in lieu of the Short Service Gratuity in the instance at (b) above.
Death Gratuity
25.3 See section 26.1 for details of death gratuity.
Balancing Death Gratuity
25.4 See section 26.2 for details of balancing death gratuity.
54
Death Benefits
26. Death in Service and Death after Leaving Service
Death in service
26.1 When a Scheme member dies, whether in service or after retirement:
(a) a death gratuity may be payable to his or her legal personal representative
(i.e. to his or her estate) – see sections 26.2 and 26.3 below for details; and
(b) pensions may be payable to his or her surviving spouse / civil partner and
qualifying children – see section 27 for details.
An example covering these both payment categories – (a) and (b) above – following
a member’s death is given at section 27.17.
26.2 If a full-time Scheme member dies in service, his or her legal personal
representative is paid a death gratuity equal to the greater of:
(a) the deceased member's pensionable remuneration (see section 16 for
details);
or
(b) the amount of the retirement lump sum which the member would have
received if he/she had retired on grounds of ill‐health on the date of his or her
death.
If a part-time Scheme member dies in service, his or her legal personal
representative is paid a death gratuity equal to the greater of:
(a) the deceased member's actual salary (not wholetime equivalent salary, see
paragraphs 22 and 23 of Department of the Public Service Circular 11/2012);
or
(b) the amount of the retirement lump sum which the member would have
received if he/she had retired on grounds of ill‐health on the date of his or her
death.
A pension may also be granted to the survivor or any eligible children (see section
27).
Death after retirement
26.3 If a member dies after retiring with immediate pension and lump sum, and the
amount of the lump sum, plus total pension payments up to the date of death, is less
than the deceased member’s pensionable remuneration, a balancing death
gratuity equal to the amount of that shortfall is payable to the deceased member's
legal personal representative.
A pension may also be granted to the survivor or any eligible children (see section
27).
55
Payment of death gratuity or balancing gratuity
26.4 In order for any death gratuity (section 26.2) or balancing death gratuity
(section 26.3) to be paid, the original probate of the will, or if the member dies
intestate original letters of administration, should be submitted to the deceased
member’s employer.
56
27. Survivors’ and Children’s Benefit
27.1 The Survivor's and Children's benefits payable under the SNA Scheme
provide pensions for the survivor and/or dependant children of a member who dies in
service or after qualifying for a pension award.
Beneficiaries and qualification
27.2 The beneficiaries of Survivor's and Children's benefits are as follows:
Spouse / civil partner regardless of date of marriage or civil partnership
registration
All eligible children
27.3 Children will be deemed eligible for payment of a pension if they are:
(a) under 16 years of age;
(b) under 22 years of age and receiving full‐time education; or
(c) where the child is incapacitated because of mental or physical infirmity and
this infirmity was present while the child was under 16 or 22 if in full‐time
education; in such a case, the pension may be paid for the lifetime of the
incapacitated child.
Rate of payment
27.4 For the first month following the member’s death, the spouse/civil partner will
receive the following payment:
Where the member dies in service
A pension equal to 1/12 of the
deceased member’s salary
Where the member dies on pension
A pension equal to
1/12 of the annual retirement
pension which the deceased
would have had,
or
1/12 of the annual rate of the
survivor's pension (see
immediately below),
whichever is greater.
Thereafter, the spouse/civil partner will receive a survivor’s pension as follows:
Where the member dies in service or
while in receipt of an ill-health pension
A pension equal to 50% of the pension
the member would have had at age 65
Where the member dies on pension
A pension equal to 50% of the
member’s pension
57
Where the member dies with an
entitlement to a preserved benefit
A pension equal to 50% of the
member’s preserved pension
Example:
A member dies in service on 1 July 2021 at age 46 with 15 years’ service. Her
preserved pension age is 65, and her potential service to age 65 is 19 years. Her
pensionable remuneration at the time of death was €40,590 per annum.
The survivor’s pension payable to the spouse / civil partner is calculated as follows:
Pensionable remuneration
€40,590
State Pension (Contributory) at 1 July 2021
€12,956
Notional member’s pension based on 34
years’ service (€40,590 x 34.0000 x 1/200)
€6,900
Spouse’s / civil partner’s pension (€6,900 x
50%)
€3,450
27.5 Where the deceased member has eligible dependant children, a pension will
be payable to each such dependant child. The maximum amount of children’s
pension will be the equivalent of the survivors’ pension. Where the deceased leaves
a surviving spouse / civil partner and up to three dependant children, the pension
payable to each child will be at the rate of one third of the survivor's pension. Where
there are more than three dependant children, the maximum amount will be divided
equally between the children.
In the example above, if there were two eligible children, the pension payable to
each child would be:
€3,450 / 3 = €1,150
Therefore a total of €2,300 (€1,150 x 2) would be paid out in pensions to the two
children.
If there were four eligible children, the maximum payable would be €3,450 divided
equally among the four children.
27.6 Where the deceased has dependant children and is not survived by a spouse
or civil partner, or where he or she is survived by a spouse or civil partner who
subsequently dies, then the pension payable will be as follows:
Where there is one child, 1/3 of the deceased’s pension; or
Where there are two or more children, a rate in respect of each child
equivalent to half the deceased’s pension divided by the number of children.
58
Contributions
27.7 Scheme members pay Periodic Contributions in respect of Survivors' and
Children's benefits. Non-periodic Contributions may also be payable for prior service
in respect of which contributions have not been paid.
Periodic Contributions
27.8 Periodic contributions are paid by deduction from salary on a continuous
basis. The contribution rate is 1.5% of net pensionable remuneration. Periodic
contributions are only payable in respect of periods of pensionable service; they are
not paid during periods of unpaid special leave, unpaid sick leave, or sick leave at
Temporary Rehabilitation Remuneration (TRR) rate of pay. Contributions are
however payable during periods of paid sick leave, whether at full pay or half pay,
and the contribution for these periods is 1.5% of net pensionable remuneration (even
where sick pay is at half-rate).
Non‐periodic Contributions
27.9 Non-periodic contributions are paid (by deduction from retirement lump sum,
preserved lump sum, death gratuity or preserved death gratuity, as appropriate) in
respect of members who, on cessation of service;
(a) are married or in a civil partnership; or
(b) were married or in a civil partnership at some time during membership of the
Scheme.
27.10 Non‐periodic contributions are payable in respect of "relevant service",
which means:
(a) for a member who is married or in a civil partnership, all service (including
notional service) which is reckonable for survivor’s pension;
(b) for a widowed member or a member who has had a divorce or civil
partnership dissolution, the period from the start of the member's reckonable
service up to the date of the end of the marriage/civil partnership.
27.11 The non‐periodic contribution rate is:
1% of net pensionable remuneration for each year of relevant service, less
any years in respect of which periodic contributions (or purchase
contributions) were paid.
27.12 Non-periodic contributions are not payable by any member who was
unmarried and not in a civil partnership at all times during his or her membership of
the Scheme.
27.13 Payment of non-periodic contributions only arises if a member has not paid
periodic contributions in respect of all relevant service, e.g.
59
(a) in cases of death in service or retirement on medical grounds (where the
spouse or civil partner of the member is credited with the member’s potential
service to age 65); or
(b) prior transferred service or any other period of service for which periodic
contributions were not paid; or
(c) added years granted for retirement on medical grounds.
27.14 A member with "pre‐Scheme service" (as at (b) in section 27.13(b)) may
reduce or eliminate the non‐periodic charge in respect of that service by paying
additional periodic contributions at a rate of 1.5% of net pensionable remuneration
for the corresponding period of service for which contributions are owed.
Alternatively the member may “double up” ongoing contributions (or pay some other
multiple of ongoing contributions) to discharge the liability.
Example:
An SNA Scheme member is married and has previous part‐time service which
amounts to 2.50 years. No contributions were made for Survivors' and Children’s
benefits and therefore at retirement there is a liability of 2.50 years.
The liability cost is (2.50 x 1%) = 2.50% of net pensionable remuneration to be
deducted from the retirement lump sum.
Alternatively, the member could have opted to pay an additional 1.5% of their net
pensionable remuneration over a period of 2.50 years or to double up and pay
3.75% (2.50 x 1.5 = 3.75%) of net pensionable remuneration over a twelve‐month
period.
Refund of contributions
27.15 Contributions in respect of Survivor’s and Children’s benefits by SNA Scheme
members are refunded in the following circumstances:
(a) where a member ceases service (other than on death), does not qualify for
pension or preserved pension, and does not transfer service to another
organisation – in this case, a full refund is payable (the most common reason
for this is that the member has less than two years' service);
(b) where a member has paid periodic contributions for a period in excess of 40
years; in this case, a refund is made in respect of the excess period only
(starting with the initial contributions paid by the member, i.e., the first
payments made into the scheme).
27.16 All refunds of contributions in respect of living persons are generally subject to
a tax charge. However, refunds in respect of Death in Service cases come within the
ambit of the Revenue tax-free limits for death-in-service lump sums, so refunds in
such circumstances will generally, under current Revenue Rules, be tax-free.
60
Combined example – death gratuity and survivor’s pension (covering Sections
26 & 27).
27.17 Patricia, a whole-time Special Needs Assistant and Scheme member dies in
service and is survived by her husband Louis. Her details relevant for calculation of
death gratuity and survivor’s pension are as follows:
Born: 31 May 1965
Died: 24 March 2021
Service at time of death: 12.6 years
Salary at time of death: €40,590
Preserved pension age: 65
Following Patricia’s death, the example workings below show how the
the death gratuity payable to her legal personal representative and
the survivor’s pension payable to her husband Louis
are calculated.
Survivor’s pension
Patricia’s preserved pension age is 65, and, as she worked whole-time, her potential
service at the time of death is 9.1863 years. This is added to her actual service of
12.6 years, to give a total service amount of 21.7863 years.
The survivor’s pension payable to her husband Louis is calculated as follows:
Pensionable remuneration
€40,590
State Pension (Contributory) at
24 March 2021
€12,956
Notional member’s pension based on
21.7863 years’ service (€40,590 x 21.7863
x 1/200)
€4,422
Spouse’s / civil partner’s pension (€4,442
x 50%)
€2,211
Death Gratuity
As stated in section 26.2, the death gratuity payable where a full-time member such
as Patricia dies in service is equal to the greater of:
(a) the deceased member's actual pensionable salary received (see paragraphs
22 and 23 of Department of Public Expenditure and Reform Circular 11/2012);
or
61
(b) the amount of the retirement lump sum which the member would have
received if he/she had retired on grounds of ill‐health on the date of his or her
death.
Calculate (a)
In Patricia’s case, (a) just above is €40,590.
Calculate (b)
Calculating (b) – the notional ill-health pension award – requires first ascertaining the
number of added years awardable to Patricia if she had retired on grounds of ill‐
health on the date of her death (see section 26.3). In her case, it would be the more
favourable of:
(i) difference between actual service and 20 years, subject to a maximum of
potential service to age 65 (which in this case, as she worked full-time,
amounts to 9.1863 years),
= 20.0000 – 12.6000 = 7.4 years
or
(ii) 6.6667 years, subject to potential service to age 60, which amounts to just
4.1863 years
Since (i) is more favourable than (ii), therefore:
the added years enhancement is 7.4 years;
the total service for notional ill-health award is 20 years [12.6 + 7.4]; and
The lump sum awardable to Patricia under calculation (b) had she retired on
medical grounds on the date of death is €30,443 (calculated as €40,590 x
20.0000 x [3/80]) = €30,443).
In her case, (a) above – one year's salary of €40,590 – is greater than (b) above –
€30,443 – so that
Gross death gratuity = €40,590
Deduction from the gross death gratuity in respect of unpaid Survivors’ and
Children’s contributions must then be assessed. This non-periodic deduction is
calculated at a rate of 1% of net pensionable remuneration per year, based on
potential service to age 65 (see section 27.11).
Net pensionable remuneration = €14,677 [€40,590 – (€12,956 x 2)]
Deduction = €14,677 @ 1% per year for 9.1863 years = €1,348
Nett death gratuity = €39,242
62
Application for Benefits and Payment of Benefits
28. Application for Benefits (including declarations)
28.1 For any pension benefit to be processed, an application form must be
completed and submitted to the Pensions Section, Department of Education,
Cornamaddy, Co. Westmeath. Each section should be completed, and details of any
previous service should be submitted for verification for pension purposes.
28.2 The application form requires a number of declarations to be made. A
member who has any other private pension or Additional Voluntary Contribution
(AVC) plan should ensure that details of those pension entitlements are included in
the completed application form.
28.3 The requirement to make these declarations is a statutory requirement – see
section 36.3.
28.4 Particular other application forms which may need to be completed include:
D2 Ill Health, NTS 1 Voluntary/Compulsory and Preserved, NTS 3 CNER.
63
29. Payment of Pensions
29.1 Under the current arrangement, all pensions are paid fortnightly in arrears by
Payroll Section. All payments, including payment of the retirement lump sum, are
made directly into a bank account. On retirement, a new pay mandate must be
completed with the nominated bank account since employers are not permitted to
transfer a member’s bank account details.
29.2 The Retired Staff Payroll System provides a facility for deductions, such as for
health insurance contributions, life assurance policies and Local Property Tax You
will need to contact the service provider to set up deductions from your pension
payment. If you wish to have your local property tax deducted from your pension
payments, you should contact your local Revenue Office and advise them of your
wishes.
64
Miscellaneous Provisions
30. Abatement of Pension
30.1 Where a member retires, and is subsequently re‐employed in the public
service, the pension is, where necessary, abated (i.e. reduced) during the period of
subsequent employment to ensure that the amount of the pension, together with the
member’s pay in respect of that period, does not exceed the remuneration which the
member would have received if, during that period, he or she had remained in the
post which he or she held on the last day of reckonable service.
Example:
A Scheme member retires on a pension of €8,118. The pensionable remuneration on
retirement is €40,590. The member is subsequently re‐employed in the public sector
on a salary of €37,000 per annum.
Since the combined pension and new salary exceed the pensionable remuneration
at retirement by €4,528 [(€8,118 + €37,000) – €40,590], the pension will be abated
(reduced) by that amount.
The pension is therefore reduced to €3,590 (€8,118 – €4,528). This reduction
ensures that the combined earnings (pension and new salary) do not exceed
€40,590 per annum.
30.1 Please note that in assessing any possible abatement of pension, “the
remuneration which the member would have received” in respect of the previous
(first) post should be uprated to take account of any pay increases applied to that
rate of remuneration following the member’s original retirement.
65
31. Implications of the Family Law Acts
Trustees of schemes under the Family Law Acts
31.1 If a member requires information for pension purposes under the Family Law
Acts, the Department of Education are deemed to be the Trustees for the purposes
of the Family Law Acts.
Provision of Information under the Family Law Acts
31.2 Parties to proceedings under the Family Law Acts 1995 (Judicial Separation)
or 1996 (Divorce) or the Civil Partnership and Certain Rights and Obligations of Co‐
habitants Act 2010 (dissolution of a Civil Partnership) are obliged to include
information about their superannuation entitlements in the Affidavit of Means which
they must furnish to the court. This information is supplied to the member by the
Trustees. Please note the following points:
(a) All requests for information must be made in writing.
(b) All requests for information must state that the information is required in
connection with Family Law proceedings and which Act applies; and
(c) Spouses and civil partners of members are entitled to general information
about the rules of the scheme, but member‐specific information can only be
supplied with the written consent of the member or on foot of a court order.
Pension Adjustment Orders (PAOs)
31.3 PAOs are orders granted by a court order directing that some or all of the
member’s superannuation benefits should be paid to the member’s spouse or former
spouse or registered civil partner and/or dependant children. Such orders are
granted only if a decree of judicial separation (under the Family Law Act 1995),
divorce (under the Family Law (Divorce) Act 1996) or dissolution of a civil
partnership (under the Civil Partnership and Certain Rights and Obligations of
Cohabitants Act 2010) is obtained. The terms of a PAO may override the terms of
the Pensions Act 1990 and the rules of any superannuation scheme to which it refers
to the extent necessary to secure payment under the order.
Implementation of PAOs
31.4 A courts will not make PAOs unless the trustees have seen the draft orders
and verified that they are capable of being implemented by them. Trustees are often,
therefore, involved in correspondence about the effects and outcomes of draft orders
submitted to them. When orders are made, the trustees are obliged, under the law,
to furnish the beneficiaries with certain information on the effect of the orders. They
are also obliged to implement the orders when payment falls to be made. The Acts
66
contain deadlines for the provision of certain information, making payments in certain
circumstances, etc.
Further information on PAOs
31.5 Further information on PAOs is contained in the Family Law Guidelines
published by the Department of Public Expenditure and Reform (edition dated 2
February 2021). That Guidelines document aims to assist trustees of public service
pension schemes in the administration and implementation of PAOs in respect of
benefits payable under their schemes. It is not however intended to be a legal
interpretation of the legislation and should be read in conjunction with the relevant
legislation and the Pensions Authority’s Guidance Notes. Where trustees are in
doubt in relation to the implementation of a PAO, legal advice should be sought.
67
32. Dispute Resolution and Appeals
32.1 Serving or retired Special Needs Assistants who have a complaint about a
pensions issue should raise it with their employer. If the complaint is not resolved
through this process the person making the complaint or a person acting on his or
her behalf may apply to the Minister for Education for a determination in relation to a
complaint or dispute through the Internal Disputes Resolution (Appeals) Process.
Timescale for certain appeals
32.2 Appeals may be made directly by the member under:
Part VII of the Pensions Act 1990 (Equality);
the Protection of Employees (Part‐time Work) Act 2001; or
the Protection of Employees (Fixed‐Term Work) Act 2003.
These Acts set out strict time limits for the making of appeals. The limits are:
in the case of Part VII of the Pensions Act, 6 or 12 months from date of
termination of employment; and
in the case of the other two Acts, 6 or 12 months from the date of the claimed
contravention to which the appeal relates, or from the date of the termination
of the employment, whichever is earlier.
Determination
32.3 The Minister for Education, having considered the appeal, and in advance of
the finalisation of the Determination, shall share with the complainant the material on
which the Determination will rely. The complainant will then have ten working
days/two weeks to respond to this shared evidence. After this period has elapsed,
the Minister, shall notify in writing the complainant of the determination which will be
(including the sharing period) within 3 months from the date on which all the details
specified above at section 32.2 are received. The determination shall include:
(a) a statement of the determination;
(b) a reference to any legislation (other than the pension scheme), legal
precedent, ruling of the Pensions Authority, ruling or practice of the Revenue
Commissioners or other material relied upon in making the determination;
(c) a reference to the provisions of the pension scheme relied upon in making the
determination and, where a discretion has been exercised, a reference to
those of its provisions by which such discretion is conferred;
(d) a statement that the determination is not binding upon any person unless,
upon or after the making of the determination, the person assents, in writing,
to be bound by it; and
(e) a statement that the applicant should establish whether or not the complaint
or dispute is one in respect of which the Financial Services and Pensions
68
Ombudsman has jurisdiction to investigate under section 131 of the Pensions
Act 1990 and that further information can be found in an information booklet
available from the Office of the Financial Services and Pensions Ombudsman,
Lincoln House, Lincoln Place, Dublin 2, D02 VH29, Telephone (01)5677000
or www.fspo.ie
Financial Services and Pensions Ombudsman
32.4 In the event that the complaint, other than a claim under Part VII of the
Pensions Act (Equality), the Part‐Time Work Act or the Fixed‐Term Work Act is not
resolved under the Appeals (Internal Dispute Resolution) Procedure outlined above,
the complainant may be entitled to make a complaint to the Financial Services and
Pensions Ombudsman.
The Financial Services and Pensions Ombudsman investigates complaints about
financial loss due to acts of maladministration in relation to occupational pensions
and PRSAs, and certain disputes of fact or law in relation to acts done.
A determination by the Financial Services and Pensions Ombudsman cannot
require:
(i) a change in scheme rules; or
(ii) the substitution of the decision of the Financial Services and Pensions
Ombudsman in cases where Trustees have exercised a discretionary power.
Time Limits for Complaints to the Financial Services and Pensions
Ombudsman
32.5 The time limits for making such complaints are:
(a) 6 years since the date of the act giving rise to the complaint or dispute; or
(b) 3 years since the complainant became aware or should have been aware of
the act giving rise to the complaint or dispute.
There is a total ban on any complainant going back further than 13 April 1996.
32.6 Except in exceptional cases, the Financial Services and Pensions
Ombudsman cannot investigate a complaint until internal dispute resolution (IDR)
procedures have been deemed to have been exhausted. For the public sector
schemes, the existing statutory provisions for Ministerial appeals are used, but on
the basis that the Minister for Education's decision is NOT final as the Minister’s
determination may be appealed to the Financial Services and Pensions
Ombudsman.
69
Appeals Process
32.7 An application shall be in writing, signed by or on behalf of the actual or
potential beneficiary and shall contain the following details:
the full name, address and date of birth of the actual or potential beneficiary;
the address to be used for service of documents in connection with the
application;
a statement concerning the nature of the complaint or dispute with sufficient
details to show why the actual or potential beneficiary is aggrieved;
such other information as the Minister may reasonably require.
70
33. Pension Adjustments
33.1 Increases in public service pensions are awarded at the discretion of the
Minister for Public Expenditure and Reform under Regulations made under section
29 of the Pensions (Increase) Act 1964.
33.2 In practice, general pay increases since 1984 have been passed on to public
service pensioners on the same basis as to serving staff. This policy, sometimes
known as "pay parity", has been subject to the important exception that:
where a pay increase is reversing or part-reversing a pay cut; and
where the pay level following such a pay increase remains lower than the pay
rate underlying the pension,
then the pension is not increased.
General pay cuts were imposed across the public service in 2010 (all pay levels
affected) and in 2013 (pay levels above €65,000 per annum affected).
33.3 The pay parity policy for pension increases referred to above was confirmed
until end-2020 in the Public Service Stability Agreement 2018-2020 (paragraph 6.2).
That Agreement was extended to end-2022 by Building Momentum - A new public
service agreement, 2021-2022 (paragraphs 3.1.1 and 3.1.2). Pension increase policy
is covered in more detail in Department of Public Expenditure and Reform Circular
19/2019: Further instruction on the pension increase policy in the public service until
end-2020.
33.4 The Minister for Public Expenditure and Reform has power under the Public
Service Pensions (Single Scheme and Other Provisions) Act 2012 to make
regulations to link public service pension increases to the Consumer Price Index
(CPI), in a manner similar to practice in the Single Public Service Pension Scheme.
Exercise of this power by the Minister for Public Expenditure and Reform would
require approval by both Houses of the Oireachtas.
71
34. Tax Relief on Superannuation Contributions
34.1 The maximum amount of pension contributions in any one year for which a
person is entitled to tax relief is related to age and is expressed as a percentage of
gross income as follows (rates current as of April 2021):
Highest age in year of pension
contribution
% of gross income for which tax
relief is available for pension
contributions
Under 30 years
15%
30 to 39 years
20%
40 to 49 years
25%
50 to 54 years
30%
55 to 59 years
35%
60 years and over
40%
This tax relief is also subject to an earnings limit. The maximum amount of earnings
taken into account for calculating tax relief on pension contributions is €115,000 per
year.
34.2 Tax relief for periodic purchase contributions is given at source through the
payroll, at the member’s marginal income tax rate. However, for the purchase by
lump‐sum option, the relief must be claimed directly from the Revenue
Commissioners by the member concerned. Because the tax relief limits cover all
superannuation contributions paid by a member (including contributions under the
Survivors' and Children’s Scheme) very large periodic or lump‐sum purchase
contributions may not be fully relievable for tax purposes in the year in which the
contributions are made. In particular, work-sharing / job-sharing / part‐time Scheme
members should note that, while purchase contributions are levied on the full annual
rate of salary, the tax relief is based on a member’s actual income in a given year –
i.e. the reduced rate of salary.
34.3 Members considering purchase of service, particularly if the purchase option
is at or very close to retirement, are advised prior to embarking on a purchase option
to clarify the tax relief position with their own local Tax Office if they have any queries
in that regard or contact www.revenue.ie.
72
35. Taxation
35.1 Section 14(1)(e) of the Finance Act 2006 provides that a person with
retirement benefits (from any source, including all public sector superannuation
schemes, but excluding social protection benefits) with an aggregate capital value on
drawdown above a specified threshold is liable for tax on the amounts above that
threshold. This threshold, which applies only to benefits payable for the first time on
or after 7 December 2005, and is currently set at €2 million, following further
amendments inserted by the Finance Act 2012 and the Finance (No. 2) Act 2013.
Where the threshold, or the personal fund threshold (PFT) a person has received
from Revenue) is exceeded, an upfront income tax charge of 40% on the chargeable
excess arises. For further details see Department of Public Expenditure and Reform
Letter to Personnel Officers of 27 June 2014.
Important Note: The relevant declaration form is part of the Retirement Application
forms. No benefits can be approved until the necessary completed forms have been
received by the Scheme administrators.
35.2 In respect of pension accrued after 1 January 2014, the defined benefits
factors in the Revenue Commissioners table below provide the age-related “decimal”
term which is used in calculation of any “chargeable excess” taxation exposure, of
the kind described just above.
Defined Benefit Factors
Age
Factor
Age
Factor
50 & under
37
61
29
51, 52
36
62
28
53
35
63,64
27
54
34
65
26
55, 56
33
66
25
57
32
67,68
24
58
31
69
23
59, 60
30
70+
22
A factor of 20 applies in respect of pension accrued up to 1 January 2014.
Example:
A member retires on 31 August 2021 aged 65 on a pension of €6,718 and a lump
sum of €50,388. Pensionable service at retirement is 40 years. The member also
has an AVC policy which at drawdown has a fund value of €166,000. We calculate
any liability to tax as follows:
73
The formula applicable is:
[Pension amounts accrued to 01/01/2014 x decimal (20)] + [Pension amounts
accrued after 01/01/2014 x decimal (which is age-related)] + value of any lump sum
received
Benefit Amount
Decimal
Amount
Pension from SNA Scheme of €6,718
x (32.3342/40) (proportion of pension
accrued up to 1 January 2014)
20
€108,611
Pension from SNA Scheme of €6,718
x (7.6658/40) (proportion of pension
accrued up to 1 January 2014)
26
€33,474
Lump Sum SNA Scheme
N/A
€50,388
AVC Fund value at drawdown
N/A
€166,000
Total Benefit: €358,473
As the capital value of the defined benefits is less than the €2 million threshold, there
is no further tax due.
35.3 With effect from 1 January 2011, the combined value of a person’s lump sums
from approved Pension Schemes (including defined benefit / defined contribution
occupational pension schemes, retirement annuity contracts, PRSAs and Additional
Voluntary Contribution (AVC) arrangements) is subject to tax when that combined
value exceeds a threshold of €200,000. Under the terms of the Pension Scheme for
Special Needs Assistants, there is a retirement lump sum limit of 1.5 times
retirement salary. Therefore, unless there is a private pension or AVC policy in place,
SNAs are not likely to be taxed on their retirement lump sum. However, if the
aforementioned threshold is exceeded, tax will apply above that point.
35.4 Tax due on retirement lump sums is calculated as follows:
Lump sum taxation rates
Amount of lump sum
Income tax rates
Up to €200,000
0%
€200,001 – €500,000*
20%
Over €500,000
PAYE and USC apply
* The upper limit of €500,000 in this band of the table is based on 25% of the
standard fund threshold (SFT). The SFT, which is the generally applicable maximum
tax-relieved pension fund for an individual, was set at €2 million in 2014 and that
amount continues to apply (as of April 2021). The 20% tax rate on this band is the
74
standard rate of income tax at the time the lump sum is paid. (Source: Revenue
Commissioners Pensions Manual, Chapter 27 [“last reviewed September 2019”],
paragraphs 3 and 5.)
75
36. Chapter 4 of the Public Service Pensions (Single Scheme and
other Provisions) Act 2012 in so far as it Relates to the Pension
Scheme for Special Needs Assistants
36.1 Chapter 4 (sections 49–54) of Part 2 of the Public Service Pensions Single
Scheme and Other Provisions) Act 2012 deals with “Provisions Applicable to all
Public Service Pension Schemes”. It became fully operational with effect from 1
November 2012.
36.2 Chapter 4 of the Act brings several provisions together in one area of primary
legislation, including:
a 40-year limit on total pensionable service across membership of one or
more “pre‐existing” public service pension schemes;
extending the scope of pension abatement: and
several provisions designed to support efficient pension administration.
“Pre-existing” schemes are the pension schemes to which public servants recruited
before 2013 belong; the definition includes the Pension Scheme for Special Needs
Assistants but excludes the Single Public Service Pension Scheme.
36.3 The relevant sections in Chapter 4 of the Act can be summarised as follows:
Section 49 (Duty to give information, etc.)
When a member is applying for a pension or is in receipt of a pension, there is
a duty to give information necessary for the proper operation of the scheme.
Section 50 (Use of Personal Public Service Number (PPSN))
As this is a unique identifier, it is put on all pension documents and is also
supplied to the Payroll. This section allows the PPSN to be shared with other
public bodies for pension administration purposes.
Section 51 (Duty to make declarations, etc.)
There is a duty on a person taking up employment to give details of any
entitlement to any preserved benefit and to notify the employer if he or she is
in receipt of any retirement benefits. This requirement is further underpinned
by the Data Sharing and Governance Act 2019.
Section 52 (Abatement and reckoning of pensionable service)
o Section 52 extends the scope for abatement (reduction) of a public
service pension where the retired public servant to whom the pension
is payable returns to work in the public service. Subject to the pay and
pension specifics of each case, such abatement can now happen
regardless of the particular area of the public service in which the
pensioner returns to work. An abatement example is given in section
31 of this Handbook.
76
o Section 52 also imposes an overall cap of 40 years’ service across
membership of one or more “pre‐existing” public service pension for
the calculation of retirement benefits. Further details of this 40-year
service cap are given in Department of Public Expenditure and Reform
Circular 13/2020: Guidance on the application of the Pensions Benefit
cap under section 52 (6) and (7) of the Public Service Pensions (Single
Scheme and Other Provisions) Act 2012.
Section 53 (Cesser or reduction of benefit)
This section provides for the refusal or reduction of retirement benefits,
including preserved benefits where a Scheme member is dismissed or resigns
and there is a financial loss to the public service body. The benefits can be
reduced to recoup this loss.
Section 54 (Survivor’s entitlement to pension)
Section 54 limits the payment of a Survivor's Pension under the Scheme to
one deceased member. However, if a case arises where a deceased member
was entitled to receive more than one public service pension, the surviving
spouse/civil partner may receive more than one survivor's pension.
77
Appendix 1: Cost Neutral Early Retirement – Tables of Actuarial
Reduction Factors
(a) Preserved age 60:
Persons with a preserved age of 60
Age last birthday
Pension
Lump Sum
50
62.4%
82.2%
51
65.1%
83.9%
52
67.9%
85.5%
53
71.0%
87.2%
54
74.3%
88.9%
55
77.8%
90.7%
56
81.6%
92.4%
57
85.7%
94.3%
58
90.1%
96.1%
59
94.8%
98.0%
(b) Preserved age 65:
Persons with a preserved age of 65
Age last birthday
Pension
Lump Sum
55
58.2%
82.4%
56
61.1%
84.0%
57
64.1%
85.6%
58
67.4%
87.3%
59
71.0%
89.0%
60
74.8%
90.7%
61
79.0%
92.5%
62
83.6%
94.3%
63
88.5%
96.1%
64
94.0%
98.0%
78
Appendix 2: Notional Service Purchase – Tables of Contributions
Payable
Table A – Purchase by reference to age 65, periodic contribution rates
[These rates also appear in Table 9 of Appendix 1 to Circular 0129/2006.]
Age next
birthday
Integrated (Class A PRSI)*
% of net salary
% of gross salary
26
0.66%
0.09%
27
0.69%
0.09%
28
0.71%
0.10%
29
0.73%
0.10%
30
0.76%
0.10%
31
0.78%
0.11%
32
0.80%
0.11%
33
0.82%
0.11%
34
0.85%
0.12%
35
0.87%
0.12%
36
0.89%
0.12%
37
0.91%
0.13%
38
0.93%
0.13%
39
0.95%
0.14%
40
0.97%
0.14%
41
0.99%
0.14%
42
1.02%
0.15%
43
1.04%
0.15%
44
1.06%
0.16%
45
1.09%
0.17%
46
1.12%
0.17%
47
1.18%
0.18%
48
1.26%
0.20%
49
1.34%
0.21%
50
1.43%
0.22%
51
1.54%
0.24%
52
1.66%
0.26%
53
1.80%
0.29%
54
1.97%
0.31%
55
2.18%
0.35%
56
2.42%
0.39%
57
2.73%
0.44%
58
3.13%
0.51%
59
3.66%
0.60%
60
4.40%
0.72%
61
5.51%
0.91%
62
7.37%
1.22%
63
11.07%
1.85%
* See Footnote to Table C.
79
Table B – Purchase by reference to age 65, lump sum contribution rates
[These rates also appear in Table 10 of Appendix 1 to Circular 0129/2006.]
Age next
birthday
Integrated (Class A
PRSI)
% of gross salary
26
27.0%
27
27.5%
28
27.9%
29
28.3%
30
28.7%
31
29.0%
32
29.3%
33
29.5%
34
29.6%
35
29.7%
36
29.8%
37
29.7%
38
29.7%
39
29.5%
40
29.3%
41
29.1%
42
28.8%
43
28.4%
44
28.0%
45
27.5%
46
27.0%
47
26.4%
48
25.8%
49
25.1%
50
24.4%
51
23.6%
52
22.8%
53
22.0%
54
21.4%
55
21.7%
56
21.9%
57
22.1%
58
22.3%
59
22.6%
60
22.8%
61
22.8%
62
22.4%
63
22.5%
64
23.9%
65
23.2%
80
Table C – Purchase by reference to age 60, periodic contribution rates
[These rates also appear in Table 11 of Appendix 1 to Circular 0129/2006.]
Age
next
birthday
Integrated (Class A PRSI)*
% of net
salary
% of gross
salary
21
0.77%
0.09%
22
0.80%
0.10%
23
0.83%
0.10%
24
0.85%
0.11%
25
0.88%
0.11%
26
0.91%
0.11%
27
0.94%
0.11%
28
0.96%
0.12%
29
0.99%
0.12%
30
1.00%
0.12%
31
1.03%
0.13%
32
1.06%
0.13%
33
1.08%
0.14%
34
1.11%
0.14%
35
1.13%
0.14%
36
1.15%
0.15%
37
1.18%
0.15%
38
1.21%
0.16%
39
1.24%
0.17%
40
1.27%
0.17%
41
1.30%
0.18%
42
1.37%
0.19%
43
1.46%
0.20%
44
1.55%
0.21%
45
1.66%
0.23%
46
1.78%
0.25%
47
1.93%
0.27%
48
2.09%
0.29%
49
2.29%
0.32%
50
2.52%
0.35%
51
2.81%
0.39%
52
3.17%
0.45%
53
3.63%
0.51%
54
4.24%
0.60%
55
5.10%
0.73%
56
6.38%
0.92%
57
8.53%
1.23%
58
12.81%
1.86%
FOOTNOTE: * Contributions are payable on both Net Salary and Gross Salary. “Net Salary” =
gross salary less twice the maximum personal rate of State Pension (Contributory). (This footnote
also applies to Table A above.)
81
Table D – Purchase by reference to age 60, lump sum contribution rates
[These rates also appear in Table 12 of Appendix 1 to Circular 0129/2006.]
Age next
birthday
Integrated (Class A
PRSI)
% of gross salary
21
31.0%
22
31.6%
23
32.1%
24
32.6%
25
33.0%
26
33.3%
27
33.6%
28
33.9%
29
34.0%
30
34.2%
31
34.2%
32
34.2%
33
34.1%
34
33.9%
35
33.7%
36
33.4%
37
33.0%
38
32.6%
39
32.1%
40
31.6%
41
30.9%
42
30.3%
43
29.5%
44
28.7%
45
27.9%
46
27.0%
47
26.0%
48
25.1%
49
24.6%
50
24.8%
51
25.1%
52
25.3%
53
25.5%
54
25.8%
55
26.0%
56
26.0%
57
25.5%
58
25.1%
59
25.7%
60
26.3%
82
Appendix 3: Notional Service Purchase – Tables of Actuarial
Reduction Factors
This Appendix 3 contains two tables. As is clear from the table headings;
the first table relates to cancellation of agreements to purchase service to
age 65;
the second table relates to cancellation of agreements to purchase service
to age 60.
For details of situations which require the use of these tables, please see sections
14.10 and 23.11.
Actuarial reduction factors which may apply on
cancellation of an agreement to purchase to age 65
Age last
birthday
Pension
Lump
Sum
30
22.9%
50.7%
31
23.6%
51.7%
32
24.4%
52.8%
33
25.2%
53.8%
34
26.0%
54.9%
35
26.9%
55.9%
36
27.8%
57.0%
37
28.7%
58.2%
38
29.7%
59.3%
39
30.8%
60.5%
40
31.8%
61.7%
41
33.0%
62.9%
42
34.2%
64.1%
43
35.5%
65.4%
44
36.8%
66.7%
45
38.2%
68.0%
46
39.7%
69.3%
47
41.3%
70.6%
48
43.0%
72.0%
49
44.8%
73.4%
50
46.7%
74.8%
51
48.7%
76.3%
52
50.8%
77.8%
53
53.1%
79.3%
54
55.6%
80.8%
55
58.2%
82.4%
56
61.1%
84.0%
57
64.1%
85.6%
58
67.4%
87.3%
83
59
71.0%
89.0%
60
74.8%
90.7%
61
79.0%
92.5%
62
83.6%
94.3%
63
88.5%
96.1%
64
94.0%
98.0%
65
100.0%
100.0%
Actuarial reduction factors which may apply on
cancellation of an agreement to purchase to age 60
Age last
birthday
Pension
Lump
Sum
30
30.6%
55.7%
31
31.6%
56.8%
32
32.6%
57.9%
33
33.6%
59.0%
34
34.7%
60.2%
35
35.9%
61.4%
36
37.1%
62.6%
37
38.4%
63.8%
38
39.7%
65.1%
39
41.1%
66.4%
40
42.5%
67.7%
41
44.1%
69.0%
42
45.7%
70.4%
43
47.4%
71.8%
44
49.2%
73.2%
45
51.1%
74.6%
46
53.1%
76.1%
47
55.2%
77.6%
48
57.4%
79.1%
49
59.8%
80.7%
50
62.4%
82.2%
51
65.1%
83.9%
52
67.9%
85.5%
53
71.0%
87.2%
54
74.3%
88.9%
55
77.8%
90.7%
56
81.6%
92.4%
57
85.7%
94.3%
58
90.1%
96.1%
59
94.8%
98.0%
60
100.0%
100.0%
