PSYCHIATRIC NURSES ASSOCIATION of Ireland

PSYCHIATRIC NURSES ASSOCIATION of Ireland
Tel: 045 852300 Email: info@pna.ie

 

PLEASE FIND INFORMATION RE RETIREMENT WHICH HAS BEEN COMPILED BY SEAMUS MURPHY, DEPUTY GENERAL SECRETARY.

 

ANYONE RETIRING SOON WHO IS INTERESTED IN ATTENTING A RETIREMENT COURSE AT PNS HEAD QUARTERS IN SALLINS, CO KILDARE IS MORE THAN WELCOME TO RING HEAD OFFICE AND GIVE THEIR DETAILS. NO DATE HAS BEEN SET FOR THE COURSE YET HOWEVER EXPRESSIONS OF INTEREST ARE WELCOMED, PLEASE PHONE ELAYNE OR LYDIA 045 852300

Dear Members,

A number of queries have been received in H.Q regarding the difference in Lump Sum and pension of those who may be in a position to retire before the end of February 2012 the date that the Minister for Finance Mr Lenihan announced in his budget speech as being the date that the calculation of pensions by reference to the pre-cut salary @ 31.12.2009 will cease.  After this date pension will be calculated by reference to the reduced salary effective from 01.01.10 (see 2011 PNA diary)  which amounts to about a 7% cut.

For those lucky enough to be in a position to retire prior to the end of February 2012 and are looking at their options of retiring or remaining on beyond February 2012 the following comparisons may be of some assistance in their decision making process.

If we take the example outlined in the PNA diary of a CNM2 deciding to retire before end of February 2012.  It will be exactly as outlined in the diary.  It will be based on the pre-cut salary.  The example in the PNA diary is based on CNM2 with full service (40 years: 30 if double years applying) on the maximum of the scale €59,570 and average of premia/allowances etc of €5,430 for a pensionable pay of €65,000, and paying modified class D -  P.R.S.I.

Lump Sum
Pensionable pay x no of years service x 3 ÷80
€65,000 x 40 x 3 ÷80 = €97,500

Pension
Pensionable pay x no of years service ÷ 80
€65,000 x 40 ÷80 = €32,500.

As a result of budget 2011 this pension will be reduced as follows:
First €12,000 – 0%
Between €12,000 and €24,000 – 6% = €720
Balance €8,500 – 9% = €765
Total €1485

Which brings the pension down to €31,015 or a reduction of 4.57%.

If that same nurse decided to wait until after February 2012 Lump Sum and Pension will be calculated on the reduced salary.

Salary of CNM2 following cut at 01/01/10 €55,852 @ Max and there is an average of 5% cut in allowances giving an average for premia/allowances based on the first example of €5159 (€5430 less 5%) for a pensionable pay of: €61011


Lump Sum
Pensionable pay x no of years service x 3 ÷ 80
€61,011 x 40 x 3 ÷ 80 = €91,516


Pension
Pensionable pay x no of years service ÷ 80
€61,011 x 40 ÷ 80 = €30,505

For the CNM2 to wait beyond February s/he will lose
• €5984 tax free lump sum
• €510 per annum in pension.  (Gross) before all deductions and levies.

This loss will then have to be considered in the context that if the CNM2 remains working beyond Feb 2012 s/he will be in receipt of his/her full salary for whatever further period they decide to remain employed

If for example the CNM2 remains working for another year they would receive €29996 extra (€61011-€31015) gross in salary versus pension.