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Sample Pension / Gratuity pre and post 1 March 2012

Sample Pension / Gratuity pre and post 1 March 2012. Sample Case: Sergeant aged 50yrs. With 30 years service. Pensionable Pay Pre 1/3/’12. Basic Pay 54,741.00 Allowances 17,694.00 Total Pensionable Pay 72,435.00 Lump Sum Gratuity Gross 108,652.00

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Sample Pension / Gratuity pre and post 1 March 2012

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  1. Sample Pension / Gratuitypre and post 1 March 2012 Sample Case: Sergeant aged 50yrs. With 30 years service

  2. Pensionable Pay Pre 1/3/’12 • Basic Pay 54,741.00 • Allowances 17,694.00 • Total Pensionable Pay 72,435.00 • Lump Sum Gratuity Gross 108,652.00 • Less Deduction (deductable) 10,910.65 • Lump Gratuity net deduction 97,741.85

  3. Pensionable Pay post 1/3/’12 • Basic Pay 51,385.00 • Allowances 16,609.24 • Total Pensionable Pay 67,994.24 • Lump Sum Gratuity Gross 101,991.36 • Less Deduction (deductable) 10,241.75 • Lump Gratuity net deduction 91,749.61 • Difference pre / post 1/3/’12 5,992.25

  4. Pension per Annum pre 1/3/’12 • Pension Gross 36,217.68 • P.S.P.R. (budget 2011) -1,819.59 • Nett of P.S.P.R. 34,398.09 • Universal Social Charge -1,854.04 • Pension nett of USC pre tax 32,544.05

  5. Pension per Annum post 1/3/’12 • Pension Gross 33,997.29 • P.S.P.R. (budget 2011) 0.00 • Nett of P.S.P.R. 33,997.29 • Universal Social Charge -1,698.61 • Pension nett of USC pre tax 32,298.68 • Difference pre / post 1/3/’12 245.37

  6. Public Service Pension Reduction • Current PSPR rates are 0% on the first €12,000 of pension per annum, 6% on the next €12,000, 9% on the next €36,000 and 12% on the remainder • Average of about 4.2% • Please watch Budget 2012 on December 6th

  7. Universal Social Charge • Current USC rates are 2% of the first €10,036 of pension per annum, 4% on the next €5,980 and 7% on the remainder Medical card holders do not go on the 7% scale

  8. Example only! • Please note that the foregoing is an example only and that the circumstances of each officer could vary substantially from those in the example

  9. Budget 2012 • Please refer to the Budget on 6th. December 2011 for any possible changes to pensions or gratuities • Currently, gratuities under €200,000 are not subject to tax. • This means gratuities of AGSI members are not subject to tax • Please note the €200,000 threshold includes combination of Garda / Private lump sum funds!

  10. Questions / Comments • Please, please no! • I am not a pensions expert • Members should contact Pensions Section Killarney for their individual details • Any decision to retire / not to retire is an individual one and should be well researched / retire only if YOU want to! • Do not be panicked into retirement

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