Public sector workers who are obliged to retire at age 65 will continue be able to draw their occupational public sector pension at age 65. The changes regarding State Pension (transition) will have no impact on such public sector workers who are on modified PRSI. However, for those public sector workers who are fully insured and in defined benefit pension schemes, their occupational public sector pensions (and contributions) are, like many occupational pension schemes, integrated (or co-ordinated) with social welfare benefits. This means the occupational pension paid is based on the assumption that the pensioner also receives the State Pension.
Where the State Pension is not payable, a discretionary supplementary pension may be payable under the relevant public sector pension scheme to bring the pension up to the same amount as would be paid to an equivalent public servant on modified PRSI. In such cases, a supplementary pension is only payable where the individual, through no fault of their own, does not qualify for social welfare benefit or qualifies at less than the maximum personal rate. It is therefore necessary to claim any available social welfare benefits in order to receive a supplementary pension. This situation is not new and already applies to public sector workers who have a retirement age below 65. Accordingly, there are no plans to introduce additional arrangements for public sector workers arising from the changes to the State Pension (transition).
