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Welcome to the Health Service Executive (HSE). This section of the HSE Superannuation Intranet provides information regarding the HSE Employee’s Pension Scheme and its’ benefits to all new HSE employees’ i.e. to staff who have not previously worked for the HSE or for staff who are rejoining the HSE or moving from another public service body after an absence of greater than 26 consecutive weeks.
The focus of this section is to provide summary information for new entrants on the following areas;
1. Pension Scheme Eligibility – who is eligible to join
2. Explanation of the HSE Pension Schemes
3. Verification of previous service for pension purposes
4. Employee contributions payable towards the benefits of the Schemes
5. Benefits that apply to Scheme members
6. Benefits of the HSE Pension Scheme
7. Benefits of the Spouses and Childrens’ Scheme
All new employees’ of the HSE** (with the exception of contracted sessional employees’) are now automatically members of the Pension Scheme from the date of hire– this includes all whole-time, part-time and flexible working staff employed under either a Contract of Indefinite Duration, Fixed-Term, Specified Purpose or “As and When Required†contract.
Membership of the scheme is mandatory for all employees’ (excluding sessional workers) and includes compulsory membership of both the
(a) HSE Pension Scheme (referred to as Main Scheme)
AND
(b) The Spouses’ and Children’s’ Scheme (referred to as Supplementary Scheme).
On recruitment, all new employees’ are automatically registered onto the above stated schemes and the relevant deductions from your salary are arranged with the Payroll Department.
**New employees’ refer to a person who commences employment in the HSE/public sector on or after 1st April 2004 or a person who was serving in a public service body prior to 31/3/2004 and left such an office for a period of greater than 26 weeks before rejoining the service.
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The HSE Pension Scheme provides a wide range of benefits to pensionable employees including;
The HSE Employee’s Pension Scheme is a ‘statutory defined benefits scheme’ and, as such, benefits are calculated by reference to reckonable service and salary at retirement date. Unlike a defined contribution scheme, the level of benefits payable is not dependent on the performance of stock markets or investment returns.
Membership of the scheme involves compulsory membership of both the
Membership to the scheme requires employee contributions, deducted from your salary and any other pensionable earnings.
Under the HSE Scheme all new hires** joining the Scheme have;
Under the terms of the HSE Pension Scheme, previous service with other specified health service organisations and public sector organisations (see attached for fulllisting of all approved bodies) may be transferred to the HSE Scheme.
If a newly appointed staff member has previous service with any of these public sector bodies they should contact their previous employer in order to verify this service and confirm to the HSE National Shared Service Pension Department whether contributions have been paid and retained or refunded for this service.
Where previous reckonable service has been verified, and contributions retained by the relevant authority, the service will transfer to the HSE and be included as service for the purpose of the HSE Employee’s Pension Scheme.
Previous verified service is segregated as:
(a) Whole-time service
(b) Part-Time/Flexible/Casual Service
While historically, part time service did not reckon for pension purposes, the situation has changed in recent years owing to the introduction of various employment regulations and Acts, in particular the Protection of Employee’s (Part Time Work) Act 2001.
Cost of Purchasing Previous Reckonable Service
(a) To purchase service where a Refund of Contributions was received for previous employment
Where an employee had an earlier period of service and received a refund of contributions on resignation, such service may be purchased through the repayment of the refund.
However, reckoning of such refunded service will be costed as follows;
Gross of amount of refund received plus compound interest at following applicable rates
Compound Interest Rates applicable for buy back of service where refund of contributions was received:
Service up to 31st December 1983 = 7% per annum
Service after 1st January 1984 = ن% per annum
Service from 14th November 2004 = 4% per annum
Tax relief is allowable on the interest element of the repayment only.
Repayment of previous pensionable service for which a refund of pension contributions was given is optional.
(b) Class A PRSI Employees’ – Officer and Non-Officer Grades
Previous whole-time temporary service – this service is costed with reference to the salary and pensionable emoluments/allowances of the individual, at the date which is 3 months after entry into the HSE Pension Scheme.
The cost to a registered scheme member who is fully insured, paying Class A PRSI, to reckon a period or periods of previous whole-time service in an approved public sector body is as follows:
(c) Class D PRSI (Officer Grades appointed pre April 6th 1995)
The cost of the scheme of purchasing previous whole-time service by a member who is not fully insured paying Class D PRSI (officer who was appointed pre April 6th 1995), to reckon a period or periods of previous service in an approved public sector body is as follows:
(d) Reckoning Previous Part-Time Service
Part-Time Service - Class A Officer Grades
In the case where a Class A employee in an Officer Grade wishes to purchase periods of part-time previous service the following applies
Back contributions payable for all part-time service prior to 19/12/2001 is costed with reference to the Pensionable Pay and Contributory Old Age Pension rate at20/12/2001 multiplied by the number of years in question.
Back contributions are payable on pensionable pay and Contributory Old Age Pension rate applicable to the period when the service was given.
Part-Time Service - Class A Non-Officer Grades
Employees’ currently serving may reckon service given in a part-time capacity prior to the 1st April 1996 as follows;
All non-officer part-time service being reckoned that was worked up to 31/3/1996, will have back contributions costed with reference to the Pensionable Pay and Contributory Old Age Pension rate applicable 1st April 1996.
All non-officer part-time service being reckoned that was worked after1st April 1996will have back contributions will be costed on Pensionable Earnings and Contributory Old Age Pension rates appropriate to the period when the service was given.
Contributions, in the form of salary deductions, are payable towards each of the following;
(i) Retirement Lump Sum and Pension (Main Scheme)
(ii) Spouses’ and Children’s Pension benefits (Spouse’s and Children’s Scheme)
Membership of both schemes is mandatory and contributions are made until retirement, resignation or death and as a member you are required to pay contributions irrespective of your marital status.
The rate of contributions depend on the rate of PRSI (pay related social insurance) paid by the employee. All new hires** to the HSE (since 6th April 1995) pay Class A1 PRSI which insures them for all social welfare benefits.
The following explanation of pension contributions supports only Class A1 PRSI employees (if you are unsure as to which Class of PRSI you are please refer to your payslip or contact your local Payroll Department).
Employee Contributions Payable (Class A1 PRSI)
(a) Retirement Lump Sum 1.5% of gross pensionable earnings
Plus
(b) Pension 3.5% of net pensionable earnings
(c) Spouses and Childrens’ Scheme 1.5% of gross pensionable earnings
Pensionable Earnings refers to salary plus pensionable allowances. Please refer to following link for a detailed list of all defined pensionable allowances.
Due to the fact that Class A1 PRSI members pay PRSI at the higher rate, net pensionable earnings, for the purposes of scheme deductions, refers to pensionable earnings less twice the maximum rate Social Welfare Contributory Pension payable to a single person.
EXAMPLE of Contributions Due for Payment by Employee
Weekly Pensionable Earnings â‚𪈸.00 per week
(salary plus pensionable allowances)
Rate of State Pension (Contributory) as of 1/1/2009 â‚𪃆.30 per week
Weekly Gross Pensionable Earnings â‚𪈸.00 per week
2*State Pension (Contributory) â‚𪆬.60 per week (as of 1/1/2009)
Net Pensionable Earnings (E600.00-460.60) â‚𪁫.40 per week
Employee Contributions to be paid are:
Lump Sum contribution of 1.5% gross pensionable earnings â‚ہ.00 per week
Pension Contribution of 3.5% of net pensionable earnings â‚ڼ.88 per week
Spouses and Childrens contributions of 1.5% gross â‚ہ.00 per week
pensionable earnings
Total weekly contributions due â‚䍆.88 per week
All contributions/deductions made for the schemes are tax deductible i.e. tax is not payable on any of the contributions made.
The main benefits of the HSE Pension Scheme (Main Scheme) are
The benefit of the Spouses’ and Children’s Pension Scheme is to provide pensions for the spouse and/or dependent children of a deceased employee who was a member of the scheme.
The determination of benefits payable under both the HSE Pension Scheme and the Spouses’ and Children’s’ Scheme is determined by both the employees’
(a) length of service in the HSE
and
(b) pensionable earnings at the date of retirement/death.
A minimum of 2 years’ service is required for eligibility for lump sum and pension benefits under the Main Scheme (no minimum service is required however for death gratuity).
A Spouses’ and Children’s Pension is payable where an employee dies in service, with minimum potential service of 5 years at age 65. It is important to note that changes to your contracted hours and periods of unprotected unpaid will impact your reckonable service (see Section on Existing Employees, Change to Contracted Hours and Leave for more information).
All new hires** to the HSE (since6th April 1995) are designated Class A1 PRSI and will receive their
(a) Occupational Pension from the HSE Pension Scheme
(b) Will also qualify for eligibility to theIrishState(Contributory) Pension (by virtue of paying higher PRSI contributions)
Pensionable Earnings: final salary/wages plus the average of the best three years’ pensionable allowances in the final ten years of service).
The main benefits of the HSE Pension Scheme (Main Scheme) are;
The minimum retirement age for all new hires** is 65 years (i.e. new entrants) and there is no compulsory retirement age. Continued employment beyond the age of 65 years is subject to suitability and health requirements.
Pension Benefits are payable before minimum retirement age where retirement is on the grounds of ill-health (see Existing Members Section, Retirement on Grounds of Ill-Health).
The maximum lump sum and pension is payable after 40 years service subject to reaching minimum retirement age. However, you do not require 40 years service to qualify for a pension and lump sum benefit. You must, however, have a minimum of 2 calendar years reckonable service for the payment of pension and lump sum benefits under the scheme. (For early retirement of the grounds of ill health a minimum of 5 years service is required).
The calculation of the Lump Sum and Pension is based on two main factors, namely
(a) The total number of reckonable years service (actual service) for which pension contributions have been made (Added years may apply in cases of retirement on grounds of ill health).
(b) Pensionable Earnings on the date of retirement
Pensionable Earnings refers to the annual salary at the date of retirement plus the average of pensionable allowances of the best 3 consecutive years in the last 10 years immediately prior to the date of retirement. Please see attached link for a complete list of defined pensionable allowances.
(i) Retirement Lump Sum
Retirement Lump Sum is payable on retirement and is exempt from tax.
Your Retirement Lump Sum is calculated as follows:
3/80th of gross pensionable earnings multiplied by the number of paid wholetime equivalent years’ service .
The maximum reckonable service is 40 years (fractions of a year count proportionately). The maximum lump sum benefit is 1.5 times Pensionable Earnings.
Example 1: Whole-time Worker
Member with 40 years service and pensionable earnings of â‚䍘,000 per annum will receive the following lump sum
3/80 X â‚䍘,000 X 40 = €60,000.00
Example 2: Part-Time Worker
Similarly, a member who served 28 years on a part-time basis of 17.5 hours per week where the whole-time equivalent would have worked 35 hours per week (attracting the same pensionable remuneration as above example of â‚䍘,000 per annum.
The lump sum will be based on a whole-time equivalent service of 14 years
i.e. 17.5/35 X 28 = 14 whole-time equivalent years
Lump Sum Benefit therefore equates as follows;
ك/80 X â‚䍘,000 X 14 = €21,000.00
(ii) Pension (New Hires** - Class A1 PRSI)
Your pension is payable from the date following your retirement and continues for the remainder of your lifetime.
Pension is calculated as follows;
(a) If Pensionable Remuneration (PR) is less than 3 1/3rd of the rate of Old Age Contributory Pension (3 1/3rd X OACP*)
PR X Number of years reckonable service
200
(b) If Pensionable Remuneration (PR) is greater than 3 1/3rd of the rate of Old Age Contributory Pension (3 1/3rd X OACP*)
3 1/3rd OACP* X Number of Years Reckonable Service
𧇈
PLUS
(PR less 3 1/3 OACP*) X No. of Years Reckonable Service
80
Examples:
(a) Employee with pensionable remuneration of â‚䍘,000 and 35 years service
â‚䍘,000 X 35 = â‚ڿ,000.00 per annum
(b) Employee with pensionable remuneration of â‚䍢,000 and 35 years service
â‚䍘,056.85 X 35 = â‚ڿ,009.93 per annum
(â‚䍢,000 less â‚䍘,056.85) X 35 = â‚ڼ,350.13 per annum
TOTAL = â‚䌻,360.05
(*OACP as of1/1/2009 is â‚𪃆.20 per week i.e. 3 1/3rd OACP as of 1/1/2009equals â‚䍘,056.85 per annum)
(iii) Death Gratuity
In the event that a member of the HSE Pension Scheme dies in service, a death gratuity is payable to their spouse or Legal Personal Representative.
There is no qualifying period of service required for the payment of death gratuity.
The death gratuity cannot be less than one year’s salary (irregardless of the amount of service completed by the deceased). If, however, the member had been in service for greater than 1 year, the gratuity will be the greater of
(a) One Years’ Salary
OR
(b) The Lump Sum Payable if the person retired on permanent infirmity, at the date of death (See Existing Members, Retirement on Permanent Infirmity for calculations).
The Spouses’ and Children’s Scheme is a scheme to provide pensions for the spouse and/or dependent children of a deceased employee who was a member of the scheme.
Membership is mandatory for all new employees’** and, as a member, you are required to pay contributions irrespective of your marital status.
The following may benefit from the Scheme;
(a) The legal spouse of a member who dies in service
(b) The legal spouse of a deceased pensioner, including spouses of post-retirement marriages
(c) The legal spouse of a former member who has a preserved benefit and who dies before the preserved benefit becomes payable (see Section on Existing Members, Preserved Benefits for further detail).
(d) All eligible dependent children of a deceased member (including step and adopted children). Dependent children under the age of 16 or age 22 if in full-time education are eligible. Where a dependent child is permanently incapacitated by reason of mental or physical infirmity from maintaining him/herself there is no age limit provided the infirmity was there from birth or arose while the child while eligible for benefit.
Calculation of Spouses’ and Children’s Benefit
One months’ salary is payable to the spouse for the first month after death. This amounts to one months pension (pension rate on date of death) if death of member occurs after retirement.
If death occurs in service or after retirement on the grounds of ill-health, the spouses’ and children’s’ pension will be calculated by reference to the pension that the member would have received had they continued in pensionable employment up to the age of 65 years, subject to a maximum of 40 years.
In all other cases, the spouses’ and children’s’ pensions will be calculated by reference to the members’ actual pension entitlement.
Spouses’ and Children’s Pensions are calculated according to the following:
Details of Pension Payable Pension Payable Total Pension
Dependents To Spouse to Children Payable
Spouse One-half N/A One-half
Spouse plus One-half One-sixth Two-thirds
1 child
Spouse plus One-half One-third Five-sixths
2 children
Spouse plus One-half One-half The whole
3 children
1 child N/A One-third One-third
2 or more N/A One-half One-half
children
It is important to note that, if a member is married and dies in service, or retires on the grounds of permanent infirmity, contributions are payable in respect of all actual pensionable service plus potential service up to the age of 65 years subject to a maximum of 40 years.
If the employee does not marry before retirement and has been paying into the scheme, they will not receive a refund of contributions (unless they are a member of a religious community).