University College Cork Pension Scheme Retirement Planning 22 nd February 2011 Susan O’Callaghan HR Operations Partner

What is the purpose of the plan? To provide you with benefits on retirement To provide you with benefits on leaving service To provide your dependants with a benefit on your death in service/retirement

How much do I pay? Your contribution is 3% of Salary plus 3.5% of Net Pensionable Salary (salary less twice the state pension payable to a single person) Members who pay Class D PRSI contribute 1.5% of salary

Your benefits on retirement Your benefits on retirement are determined by a number of factors: – Your service to retirement – Your salary on retirement – The class of PRSI you pay (people paying Class D PRSI do not accrue an entitlement to the state pension)

Your benefits on retirement Normal Retirement Age is 65 (* pre 1 April 2004 entrants to the public sector can retire at age 60) It is possible to retire prior to 65 on a “Cost Neutral” basis You will be entitled to both a pension and a tax free lump sum (*members paying Class D PRSI can forego the tax free lump sum and opt for a higher pension)

Your benefits on retirement Benefits on retirement at age 65 Salary: €45,000 *Net Pensionable: €21,049 Service to 65: 40 yrsSalary (NPS)** Pension : €10,525 p.a. plus State (€11,975***) : €22,500 (Calculation: NPS x Service/80) Lump Sum: €67,500 (one-off) (Calculation: Salary x 3 x Service/80) *All retirements prior to 29 th February 2012 will be based on the pre cut salary at 31 December 2009 **For members paying Class D PRSI pension is based on full salary as there is no entitlement to a state pension. *** Amount of state pension for 2011

Your benefits on retirement Will my pension and my spouse’s pension increase in payment? The pension in payment will increase in line with the current public sector policy of “pay parity” increases. This means that as the relevant salary scale increases the pension in payment will also increase. Note: The pension in payment is now subject to the Public Service Pension Reduction (PSPR) if retirement occurs prior to 29 th February 2012

Your benefits on retirement Less than 40 years service to age 65 Your pension will be based on whatever your service is to age 65 and salary on retirement. It is possible to pay additional contributions so as to increase your service on retirement.

Your benefits on leaving service Less than 2 years scheme service: You will be entitled to a refund of your own contributions less tax, currently 20% More than 2 years scheme service You will be entitled to a preserved pension from age 65 based on service to date of leaving and the ‘uprated’ salary or You may transfer your service to another Irish public sector employer who operates within the public sector transfer network (The option to transfer also applies if you have less than 2 years scheme service)

Your benefits on death in service Lump Sum payable to your dependants/estate Calculation based on service to date of death and will be a minimum of once salary and maximum of 1.5 times salary Spouse’s Pension Calculation based on expected actual service to age 65 and salary at date of death. Children’s Pension Calculation is 1/3 rd of the Spouse’s Pension payable to a maximum of 3 children.

Your benefits on death in service Benefits on death in service at age 45 Salary: €45,000 Spouse’s Pensionable: €33,025 Service to 65: 40 yrsSalary (SPS)* Service on death: 20 yrs Spouse’s Pension : €8,256 p.a. plus State (€10,062) : €18,318 (Calculation: SPS x Service to 65/160) Lump Sum: €45,000 (Calculation: Salary x 3 x Service on death/80) Children’s Pensions where applicable will be 1/3 rd of the Spouse’s Pension *State pension payable assuming recipient is under age 66

Your benefits on death in retirement Spouse’s Pension Calculation based on service to the date of retirement and the Spouse’s Pensionable Salary at the date of death. Children’s Pension Payable where applicable

Payment of Additional Contributions Is it possible to pay AVCs to the scheme? Yes you can pay additional contributions to the scheme so that you purchase notional years service. Contributions can be paid via lump sum or regular monthly contributions. If you want to avail of this option please contact HR Pensions at least 1 month prior to your next birthday.

Payment of Additional Contributions I have temporary service, is this pensionable? Yes provided the service was not hourly paid and equates to at least 20% (50% pre 20 December 2001) of the full-time equivalent. Contributions must be paid in respect of the service in order for it to be included for pension purposes. (Prior temporary service not paid for will impact on your entitlement to Professional Added Years, where relevant).

Transfer of Service I have prior service with another public sector body, can this be transferred? Yes, provided your previous employer is part of the public sector transfer network. If you wish to avail of this option please advise your previous employer that you are now a member of the UCC scheme.

Transfer of Service I have prior service with a private sector company, can this be transferred? No. As the UCC pension scheme operates on a ‘pay as you go’ basis, it is not possible to accept monetary transfers. (Retained benefit entitlements with another pension scheme will impact on your entitlement to Professional Added Years, where relevant).

Recent Developments Public Service Pension Reduction (PSPR) Taxation of Lump Sum in excess of €200,000 Professional Added Years – application of the discretion

HR Pensions Contact Contact HR Pensions at: Tel: You can access the HR Pensions webpage at:

Useful Contact Information Department of Social Protection Website: Telephone (State Pension): 071 – General Queries: The Revenue Commissioners Website: South West Region PAYE, Government Offices, Sullivan’s Quay, Cork Telephone:

Questions???