Move from Section 38 to 39

lazyman

Hello

I have worked for the last 20 years in a section 38 organisation and am in my early 40s. I have been offered a section 39 position with better pay in a job I would enjoy more with a fresh challenge.

I know I'll be stopping my public service pension but are there any other concerns? When I say it to friends and family, the initial reaction is that I could be making a mistake leaving section 38. The new pension is defined contribution where the employer pays 6% and I pay 3%....

Thanks for any advice

Oscar_Madison

Whilst not knowing the nature of your work and career prospects for further advancement in this new area vs the opportunity to progress and earn more money in your current position, the best advice would be to obtain guidance from a pension adviser.

In the first instance, I assume you know what your pension will be at retirement if you continued in current area assuming it’s defined benefit? -

have you received the calculation on what your final reduced pension will be come your retirement age?

My understanding is that pay agreements for section 38 workers are different than for section 39 workers? I don’t have any experience of this so link below as a starting point.

Others will advise more but in simple form, you’re giving away job security and an element of pension guarantee for presumably more money and a better job.

How much extra will you earn ? Will you be placing that extra money into a pension to shore up any potential shortfall ?
What career progression opportunities are likely in the new role vs current role?

Would a side-ways move in current organisation help you get further ultimately within current organisation?

Just some questions to consider- pension yes is a significant factor- but future earnings and quality of life/job satisfaction are also factors - best of luck

https://www.siptu.ie/siptu-health-meets-with-government-officials-to-discuss-section-39-pay-issue/

lazyman

Thank you for your reply, some great advice in there

Career and salary wise I should be better off moving, it's the pension is the biggest factor.…suppose I can always rejoin section 38 in a few years time

Thanks again