RTAI Fact Sheet

PUBLIC SERVICE PENSION REDUCTION

What rate of Public Service Pension Reduction (PSPR) applies to my pension?

The rate of PSPR deducted from pension is not the same for every retired public servant. Two factors determine which particular rate applies: when did you retire and how much is your gross annual pension?

When did you retire?

If you retired on or before 29 Feb 2012, either the rates @ A or B will apply.

If you retired from 1 March 2012, either C or D will apply

I retired before 29 February 2012, which of A or B applies to me

If you pension is up to €34,132 per annum the rates @ A apply.

If your pension is over €34,132 per annum the rates @ B apply.

I retired after 1 March 2012, which of C or D applies?

If you pension is up to €32,500 per annum C applies [No PSPR]

If your pension is over €32,500 per annum the rates @ D apply.

Why are the rates lower for those who retired from 1 March 2012 onwards?

Though teachers had a salary cut on 1 Jan 2010 teachers who retired on or before 29 Feb 2012 [the grace period] retired on their ‘pre pay-cut salary’ i.e. their pension and lumpsum was calculated on their previous salary rather than on their reduced salary.

Teachers who retired since 1 March 2012 [after the grace period] have pension and lumpsum calculated on their actual salary at the time of retirement.


Retired prior to 1 March 2012

(A)  Treatment of pension up to €34,132 per annum

PSPR rates @ 31 December 2015 Up to 12K Exempt
  12K to 24K 6%
  24K to €34,132 9%

RPSP Reversal

(a) 1 Jan 2016 Up to 18,700K Exempt
    18,700K to 24K 6%
    24K to €34,132 9%
(b) 1 Jan 2017 Up to 26K Exempt
    26K to €34,132 9%
(c) 1 Jan 2018 Up to €34,132 Exempt

(B) Treatment of pensions over €34,132 per annum

PSPR 
rates @ 31 December 2015
Up to 12K Exempt
  12K to 24K 8%
  24K to €60k 12%

RPSP Reversal

(a) 1 Jan 2016 Up to 17K Exempt
    17K to 24K 8%
    24K to 60K 12%
(b) 1 Jan 2017 Up to 22K Exempt
    22K to 24K 3%
    24k to 60K 12%
(c) 1 Jan 2018 Up to  30K Exempt
    30K to 60K 12%
[*Higher rates apply to pensions over €60k (17%) and for pensions over €100k (28%) but these are not shown]

 


Retired from 1 March 2012

(C) Treatment of pension under  €32,500  per annum

There is no deduction for PSPR for teachers who retired from 1 March 2012 onwards for pensions up to €32,500.



Retired from 1 March 2012

(D) Treatment of pension over  €32,500 per annum

PSPR 
rates @ 31 December 2015
Up to 12K Exempt
  12K to 24K 2%
  24K to €60k 3%

RPSP Reversal

(a) 1 Jan 2016 Up to 29,300K Exempt
    29,300K to 60K 3%
(b) 1 Jan 2017 Up to 39K Exempt
    39K to 60K 2%
(c) 1 Jan 2018 Up to €60K Exempt
[*Higher rates apply to pensions over €60k (5%) and for pensions over €100k (8%) but these are not shown]