Brief outline of the Special Needs Assistants final salary superannuation scheme

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1 Brief outline of the Special Needs Assistants final salary superannuation scheme And new single public service career average scheme introduced in 2013 NOVEMBER 2013

2 Contents Brief outline of the SNA final salary superannuation scheme...3 Department of Public Expenditure and Reform: General outline of pension scheme standard terms...6 Summary...7 Accrual and member benefits...9 Illustration of pension accrual...12 Contributions...13 Pension and retirement age...14 Purchase and transfer...14 Other benefits...15

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4 Brief outline of the Special Needs Assistants final salary superannuation scheme This outline guide is for the general information of members. The full details of the scheme are available on the Department of Education and Skills website and the detailed documents there are definitive in determining benefits and eligibility. This scheme applies to staff who were first employed in the public service prior to 1st January Unless they are on secondment, other approved leave or return on the same contract of employment, they cease to be members of this scheme after a break of more than 26weeks. 1. The superannuation provisions consist of two Schemes (i) the main scheme, which essentially provides for pension and lump sum at retirement or for the payment of a death gratuity if a member dies in service and (ii) the associated spouses' and children's pension scheme which provides for widow s/widower s/civil partner s pension and/or children s pension. 2. The value of the superannuation benefits is related to pensionable service, subject to a maximum of 40 years, and to salary at retirement or, where death in service occurs, at death. Added years of pensionable service, subject to a maximum in most circumstances of six and 2/3 years, may be credited to a member who retires on health grounds having completed at least five years pensionable service. An SNA cannot receive more illhealth added years than they would accrue if they served to normal retirement age. In the event of death in service, a death gratuity of not less than one year's salary (at the rate applicable at the date of death) and not more than 1.5 times that rate of salary will be payable. If there is a surviving spouse and/or dependent children, the deceased member will be credited with added years of pensionable service, which will bring total pensionable service, for purposes of calculating the Spouses' and Children s Pension, up to 40 years or up to the amount which the member would have had by compulsory retirement age, whichever is less. 3. Generally speaking, an SNA who was employed before April 2004 must retire at the end of the school year in which he/she reaches age 65 but may retire voluntarily any time after reaching age New provisions were introduced in April These increased the minimum age for pension to age 65 for new entrants on or after 1st April 2004, and abolished the compulsory retirement age for those new entrants. The term new entrant is defined in detail in the Act. Broadly speaking, a new entrant is a person who commenced employment in the public service on or after 1st April 2004, or returns to employment on or after that date following a break in public service employment of more than 26 weeks. This broad definition is for general information only and the Act itself should be consulted when determining whether a person is a new entrant for the above purpose. 5. The main superannuation scheme provides for ongoing deductions from salary from the date of admission to the scheme until retirement or death in service. 6. The spouses' and children s scheme provides for ongoing deductions from salary. It also provides, where a member retires on health grounds or dies in service, for the deduction of contributions from the disability retirement gratuity or death gratuity in respect of any added years which may be credited to the deceased member for the purposes of a spouse's and/or children s pension. The scheme makes provision for pensions to be payable to spouses and children even where the marriage/births take place after retirement but there is no provision for a refund of contributions where the member retires unmarried or dies unmarried. 3

5 7. Pensions are calculated as follows: 1/200th of salary multiplied by the total number of years' reckonable service. This method of calculation applies for salaries up to 31/3 times the contributory state pension. As this exceeds the current maximum of the SNA scale, methods for calculating pensions for salaries above that amount are not described here. 8. The retirement lump sum is calculated at the rate of 3/80th of salary for each year of pensionable service. 9. Example of superannuation benefits payable on retirement. Pension: An SNA, with annual gross pay of 27, at retirement who has 20 years reckonable service would qualify for a gross annual pension of 2, Lump sum: The gross lump sum payable, based on the above pay and reckonable service, would be 20, Where the reckonable service is 40 years, the pension and lump sum would be double these amounts 10. Example of contributions payable by a full-time SNA l Since 2008 the weekly maximum personal rate of the contributory state pension is Twice the fortnightly rate is (ie x 2 x 2). l The fortnightly contribution payable by a SNA currently earning 1, per fortnight will be 24.94, calculated as follows: l l Main scheme contribution 1.5% of gross pay ( 1,070.79) Plus 3.5% of co-ordinated pay ( ) 6.22 Spouses and children s scheme contribution 1.5% of co-ordinated pay ( ) 2.66 l Total contribution per fortnight Preserved pension rights known as deferred benefits: A SNA with at least two years pensionable service who leaves without immediate entitlement to pension may get pension and lump sum from age 60 (age 65 in the case of a new entrant from 2004) based on actual service. 12. Under the terms of cost neutral early retirement, a pension scheme member aged 50 years of age, or 55 years of age in the case of a new entrant from 2004, and who has a minimum of two years qualifying service may retire and receive immediate benefits. The benefits are actuarially reduced to take account of the fact that the member will receive his or her benefits before normal retirement age. 13. A member of the scheme may purchase additional notional service provided that he or she would have at least nine years potential actual service by the time he or she attains 60 or 65 years of age (in the case of new entrants from 2004, it is by reference to 65 years of age only). Payment can be by way of lump sum or periodic deductions. Terms and conditions apply to the purchase of notional service which forms a contract between the member and the Department. 14. Pension benefits are payable upon the application for those benefits by a member. 15. While the scheme was introduced in 2004, membership was backdated where the member had any reckonable service as a special needs assistant from 1st September The scheme also provides for the buyback for pension purposes of past service as a special needs assistant given before 1st September Any arrears of contributions for prior service, outstanding at retirement, is payable by deduction from the lump sum before it would issue. 4

6 16. Transferability of service If an SNA secures pensionable employment in another public service organisation which is a member of one of the public sector transfer networks, their service under this scheme may be transferred to that organisation for pension purposes. Similarly, prior pensionable service in an organisation which is a member of one of the public sector transfer networks may be transferred to this scheme. 17. Pensions adjustment orders Where a valid pensions adjustment order has been made, the rules of this pension scheme and payment of any benefits under those rules are subject to the terms of such an order and cannot override it. Where a pensions adjustment order exists, it is the responsibility of the parties concerned to ensure that the Department is notified. 18. Further details are available on the Department of Education and Science web site; 5

7 Department of Public Expenditure and Reform SINGLE PUBLIC SERVICE PENSION SCHEME GENERAL OUTLINE OF STANDARD TERMS January

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18 DUBLIN Nerney s Court, Dublin 1. Phone: Fax: /2/3. info@impact.ie CORK Father Matthew Quay, Cork. Phone: Fax: impactcork@impact.ie GALWAY Unit 23, Sean Mulvoy Business Park, Sean Mulvoy Road, Galway. Phone: Fax: impactgalway@impact.ie SLIGO 51 John Street, Sligo. Phone: Fax: impactsligo@impact.ie