University of Limerick Superannuation Scheme
Benefits of the Pension Scheme • Retirement Pension & Lump Sum • Death Gratuity • Spouses’ & Children’s Pensions
Type of Scheme • University of Limerick Defined Benefit Scheme (for pre 1 Jan 2013 entrants to the Public Sector) or Single Public Service Pension Scheme: CPI-linked Defined Benefit (for new entrants from 01 Jan 2013) • Unfunded – employee contributions • Pay-As-You-Go • Registered with Pensions Board
Contributions Payable For PRSI Class A (Non new entrant*) • 1.5% of basic salary and pensionable allowances • 3.5% of basic salary and pensionable allowances less twice current rate of State Contributory Pension in respect of pension benefits • 1.5% of basic salary and pensionable allowances in respect of the Spouses or Civil Partner & Children’s Scheme *pre 01 Jan 2013
Contributions Payable (cont’d) For PRSI Class A (New entrant to Public Sector 01 Jan 2013) • 3.5% of net pensionable remuneration PLUS 3% of pensionable remuneration.
Retirement • Normal Retirement age is 66 for new entrants to the Public Sector (rising to 67 and 68 in line with State Pension age changes) • Normal Retirement Age is 65 for employees who joined the Public Sector between 01 April 2004 and 31 Dec 2012. • Pre 1 April 2004 entrants to the public sector can retire from age 60 It is possible to retire prior to normal retirement age on a ‘Cost Neutral’ basis.
Benefits on Retirement • You will be entitled to both a pension and a tax free lump sum • Your benefits on retirement are determined by a number of factors: • Your PRSI Class • Service to retirement • Salary on retirement • UL pension Scheme or Single Public Service Pension Scheme
Example Pension CalculationPRSI Class A (non new entrant)* Retirement Pension: • 1/200th of pensionable pay up to 3.334 times the current rate of Contributory State Pension plus • 1/80th of pensionable pay in excess of this limit Calculation: • Actual Salary: €50,000 • Current Rate of Contributory State Pension: € 12,017.05 • Pension Assuming 40 years service is: • 40,056.83 x 40 x 1/200 = € 8,011.37 plus • 9,943.17 x 40 x 1/80= € 4,971.58 • Total University Pension = € 12,982.95 *pre 01 Jan 2013
Example Pension CalculationPRSI Class A (non new entrant) • Lump Sum: 3/80ths of pensionable pay • 50,000 x 40 x 3/80 = 75,000 Euros
Example Pension CalculationPRSI Class A (new entrant)* • Money amounts (referable amounts) building towards pension and lump sum are separately accrued each year using the following formula: • Pension: Accrual rate of 0.58% of pensionable remuneration up to a ceiling of 3.74 X State Pension Contributory (SPC) (currently €45,000) PLUS (where applicable)1.25% pensionable remuneration above that level. • Lump Sum: 3.75% of pensionable remuneration (see Single Public Service Pension Scheme booklet for more information)
Retirement Pension • PRSI Class A + = • For members paying PRSI Class D, pension is based on full salary as there is no entitlement to a state pension
Transfer of Service • If you have Public Sector Pension Service it may be transferable to UL under the Transfer Scheme • Please contact a member of the Pensions Team to discuss in detail
Additional benefits • Income Continuance Cover: • 75% of pre-disability salary until age 65 • Cost is 0.60% of gross salary • First three months membership free • Life Cover • 2.5 x salary in the event of death • Cost is 0.558% of gross salary paid monthly • To apply see online • Detailed Information & Application forms for both policies are available on the HR Website
Employee Self Service –Core Portal • View your Personal Pension record via Core Portal Pensions and to model your future pension entitlements. • View and update your Personnel Details to ensure your personnel details are accurate and up-to-date • See the Pensions Section of the HR Website
Contacts: Pensions Further detailed Pensions information is available on our website: http://www.ul.ie/hr/pensions-superannuation Should you wish to discuss your individual pension, please arrange an appointment with a member of the Pensions Team • Ellen Keegan, HR Officer Pensions (ext. 4344) • Noelle O’Connor, HR Administrator Pensions (ext. 3155)