Superannuation:
From the 1st February 2001, it is compulsory for all nurses employed in the public health service including those employed in a temporary or part-time capacity to join the relevant Superannuation scheme.
Lump sum and Pension entitlement:
Lump sum and Pension are calculated on the basis of Pensionable pay i.e. rate for the Grade (provided the Nurse did not change grade in the last three years) in which one serves at the date of retirement plus average of emoluments (premium pay allowances etc. but excluding Overtime) over the last three years now however at long last the Circular giving effect to reckonability for Pension purposes of emoluments (Premium Pay Allowances etc) recieved in the best three consecutive years in the last ten preceding retirement has issued from the Dept. of Finance.
The provisions of this Circular apply from 1st April 04.
At a meeting of the Parallel Process on Monday 30th June 2008, Ms. Patsy Carr from the Dept. of Health, Superannuation Section stated that a Circular specific to health will issue from her Department in the next couple of weeks whcih will be specific to health but which will not interfere in any way with the provisions outlined in the Dept of Finance Circular but will contain information relevant to health.
Example: Calculation of Lump Sum and Pension for a C.N.M.II with full service (40 years) on max of grade €55,588 and average of emoluments at €9,412 for Pensionable pay of €65,000.
Lump Sum:
Pensionable pay multiplied by number of years service multiplied by 3/80th =
€65,000 x 40 x 3 divided by 80 = €97,500
Pension:
Pension - PRSI Classification “D”: Pensionable pay x no. of years service divided by 80 = €65,000 x 40 divided by 80 = €32,500
or
Pension: PRSI classification “A”. Pensionable pay less double annual rate of Contributory Old Age Pension x 40 divided by 80 = €65,000 - €20,102 x 40 divided by 80 = €22,449
This is known as a co-ordinated pension, as both the service pension and the contributory old age pension will usually give a payment similar to that payable to class “D” contributor.
In this instance if a Nurse retires before 65 years a supplementary pension to make up the deficit will be paid by the Employer and between 65 and 66 when the o.a.p. will become due a Social Welfare Retirement Pension may be paid if one meets the contribution requirements.
Note:
Calculation of lump sum for Nurses who were in service prior to 1977 and who did not opt into the “New Scheme” will differ from above as the divisor is 30. To access a maximum lump sum a Nurse will need 45 years service.
The Pension is calculated similarily under both Schemes
Incremental Credit:
Full incremental credit may be granted to Nurses on permanent appointment in respect of all previous genuine nursing experience in Ireland and abroad i.e. who worked in the Public Health Service or recognised Private Health Services of that country but does not include Agency Nursing. The revised Incremental Credit Agreement for Temporary Nurses which came into effect on 1/1/1999 also gave the same rights to temporary nurses to be implemented on a phased basis. Under this agreement currently, temporary Nurses can now access the max of scale and L.S.I. if they meet the service requirements.
* Post Registration Courses: Incremental Credit may be granted to Nurses undertaking Post Graduate Courses on a full time basis up to a maximum of two (2) increments
