Grace Period for Retirements on or before 1 April 2019
The Financial Emergency Measures in the Public Interest Act allows staff who retire on or before 1 April 2019, to have their pension calculated on their pensionable pay rate in force on 30 June 2013.
Pensions Information & Retirement Planning Sessions will be scheduled for 2016 and these will be communicated through HR Notices. Queries may be directed to Pensions@ul.ie.
Frequently Asked Questions
I am considering retiring in 2016; will my pension benefits be affected by the Haddington Road Agreement?
The Financial Emergency Measures in the Public Interest Bill contains a provision which allows staff who retire on or before 1 April 2019, to have their pension benefits calculated by reference to the pay scales applicable on 30 June 2013 (subject to normal pension scheme rules). Pay cuts only applied to staff who are on salaries in excess of €65,000 p.a.
A new rate of PSPR (Public Sector Pension Reduction) was also introduced for pensions coming into payment in the period 1 July 2013 to 1 April 2019, which are over €32,500 p.a.
Annual Pensions of a Gross annual value below €32,500 will not be subject to PSPR.
What rates of PSPR are applicable to pensions awarded during the Grace Period?
The following rates of PSPR are applicable in 2016 to pensions exceeding €32,500.00 per annum awarded during the Grace Period:
- Portion of annual pension up to €29,300: Exempt
- Portion of annual pension between €29,301 - €60,000: 3%
- Portion of annual pension between €60,001 - €100,000: 5%
- Portion of annual pension over €100,000: 8%
An employee whose Salary was €81,402.00 on 30 June 2013 and subsequently reduced to €76,890.00 on 1 July 2013 as a result of the FEMPI Act 2013 may choose to retire in 2016 and have their pension calculated using the salary figure of €81,402. If their annual pension figure has a value above €32,500 then a Public Sector Pension Reduction would also apply as per the rates listed above.
If that same employee were to retire after the Grace Period has finished, their pension benefits would be calculated using the reduced salary figure of €76,890.00. No Public Sector Pension Reduction should apply in this case.