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Public Service Pension Question

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  • 11-12-2013 6:40pm
    #1
    OptimusBlinds
    Registered Users Posts: 2 ✭


    Hi there
    We have been trying to figure this out for many a month now, and I have searched through this site as well as google and followed many a thread to try to get an answer that is specific to my case and is in language that I understand, but to no avail. So, new thread!

    My case is as follows:
    I retired at 62 after 19 years in the public service. I had paid higher level of PRSI all of that time as well as contributing to super annuation. When I reach 66 I expected to receive both the Contributory Old Age Pension (or the percentage of it that I was entitled to after my contributions) as well as the separate Public Service Pension that I contributed to.

    So: COAP + PSP = My Pension

    However, I have since been informed that when I reach 66, the payment of the PSP will be reduced from the full figure, as they will take into account that I am receiving a COAP.

    So I will receive: COAP + (PSP - x)
    where 'x' is an amount subtracted from the full PSP based on some calculation.

    I simply cannot understand, nor can I find anything on the multitude of sites that I have browsed, why I am being penalised for having paid into both pension pots so to speak? I paid into Pot A with my PRSI and I paid into Pot B with my pension contributions so surely I should be entitled to receive from both pots.

    If I had worked in the private sector, paid into Pot A with my PRSI contributions and then paid into Pot B for a private pension, I would receive both the COAP and whatever I got from my contributions to Pot B.

    I would appreciate any explanations you have for me, and while I appreciate any responses please do not direct me to look on welfare.ie or cspensions.gov.ie etc. as I have been through them all. I do not wish to appear ungrateful but I am pulling my hair out browsing through all ends of these and other websites and I still do not understand it.

    Thanks in advance
    OB
    Tagged:


Comments

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    #2
    mp22
    Moderators, Business & Finance Moderators, Regional South Moderators Posts: 6,854 Mod ✭✭✭✭mp22


    Moved from state benefits,might be more knowledgeable types here.


  • Options
    #3
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    I always though that public service workers did not receive the contributory old age pension ?


  • Options
    #4
    coylemj
    Registered Users Posts: 25,437 ✭✭✭✭coylemj


    OptimusBlinds wrote: »
    If I had worked in the private sector, paid into Pot A with my PRSI contributions and then paid into Pot B for a private pension, I would receive both the COAP and whatever I got from my contributions to Pot B.

    Not necessarily, at least not in the way you imagine. In a lot of private defined benefit pension schemes there is a linkage (known as 'integration') whereby the state pension (when it becomes payable) is deducted from the pension paid by the employer's scheme. The aim is that the retiree will get a total benefit which includes the state pension.

    Download the first booklet ('How does my pension scheme work' - PDF file) at this link and read Section 7 'Integration with the state pension'.

    http://www.pensionsboard.ie/en/Publications/Information_Booklets/


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