Pension deduction question

Goosewad

Hi, hoping someone can help...

I don't understand all of the deductions that appear on my payslip. There are two pension related deductions:

PEN RELATED DEDN
and
PENSIONS GROUPED

What does the second one mean?

Also, someone told me that '1.5% SP & CH. GROS' means a spouse and children tax. Is there any way to get out of this?

Final question, I'm not in permanent or any kind of long term employment at the moment (and probably won't be for many years) - will the pension deductions benefit me in any way in the future, this being the case?

Thanks in advance.

shar01

Membership of the Spouse's and Children's Scheme is compulsory for anyone starting in the Public Service on or after 01/01/1986, regardless of marital status.

Unfortunately you can't opt out...

I stand to be corrected but I think those in the religious orders don't have to contribute.

If you resign with less than two years service and don't immediately take up duty in other Public Service body, you'll get your contributions returned (less tax). The Dept of Ed website has some info.

solerina

That spouses and childrens deduction makes my blood boil....its an insurance policy I didnt ask for....(similar to the one the banks are soon having to pay refunds on)...utter disgrace !!

TheDriver

its all part of a pension, thats all. call it what you want but whether its widows and children etc but its part of the pension scheme. They shouldn't make it seperate as its all part of the one thing.

solerina

TheDriver wrote: »

its all part of a pension, thats all. call it what you want but whether its widows and children etc but its part of the pension scheme. They shouldn't make it seperate as its all part of the one thing.

Are you sure ???
I was told that its an insurance in case you die before your spouce and child, they are not entitled to your pension so they get something fronm the S&C fund instead.....if you stay alive the money vanishes into the overall pool....maybe I am naive but that what I was told a few years ago and I never questioned it (you used to be able to claim it back at retirement if you lived that long, but not anymore)

Kristopherus

The Spouses & Children deduction is part of your overall pension deduction. What it means is that in the event of you death before reaching pension age, your spouse (& children if under 18) will receive a pension from your contributions.
The other Pension Deduction is something our wonderful govt thought up to eek more money from public servants. To call it a Pension Deduction is a blatant lie. Its just another tax public servants pay. It carries no accruing benefits and goes to plug the black hole that is Anglo:mad:

cautiouskate

If you have less than 2 years service, are not eligible to be a member of a public service pension scheme or are not eligible to receive any pension from such a scheme, you will be entitled to claim back the PRD if you leave within that time. However, some employers are not telling employees this, they are deducting the PRD and then leaving it up to employees to claim a rebate when they leave in the above mentioned circumstances

Mendoza

Any idea what is going on with mine?

I'm getting deducations for:
1. 1.5% SP. & CH. - Pen (That's grand since its explained above)
2. Singe PENS SCH 2
3. PENSION - Grouped
4. SINGLE PENS. SCH 1

Seems a bit excessive having four different pension deductions.

NIMAN

Could I ask another question about this Spouse & Children deduction?

My OH pays this, say she dies in service, what actual amount do I and the kids get?

What she is paying every month would provide an incredibly good life insurance policy.

Geuze

NIMAN wrote: »

Could I ask another question about this Spouse & Children deduction?

My OH pays this, say she dies in service, what actual amount do I and the kids get?

What she is paying every month would provide an incredibly good life insurance policy.

Die in service

Lump-sum death benefit of 1x to 1.5x the annual salary.

17. What benefits apply if I die in service? On production of probate or
letters of administration, a death gratuity is payable to the officer’s legal
personal representative. It is the greater of:

• One year’s pensionable remuneration (at the rate applicable at the officer’s death); or
• The amount of lump sum that would have been payable had
the officer retired on grounds of ill-health at the date of death,
subject to a maximum of 1 ½ times the officer’s pensionable
remuneration at the date of death.
There is no minimum service requirement. If the amount payable is
€20,000 or less it may be paid without probate or letters of
administration to the person(s) appearing to be entitled to benefit
from the estate.

Geuze

If the officer is a member of the Spouses’ and Children’s
Contributory Pension Scheme (see question 22), an amount equal
to the month’s salary will be paid to the spouse for the first month
after death.

Thereafter spouses’ and children’s pensions will be
payable based on the deceased officer’s potential service to age 65
(60 for Prison Officers), subject to a maximum of 40 years. There is
an appropriate deduction made from the Death Gratuity in respect
of this additional notional service (see question 26).

NIMAN

So basically am I reading this right?

There'd be a lump sum of up to 1.5x salary? (is that the salary pre tax). Is this lump sum taxable?

And then a monthly contribution until kids all pass 18? What would the monthly amount be? How do you calculate it?

The lump sum is poor enough. I work for a private company and their lump sum is 4x salary.