Tuesday, 27 May 2014

Questions (443)

Clare Daly

Question:

443. Deputy Clare Daly asked the Minister for Social Protection further to Parliamentary Question No. 111 of 3 April 2014, if he will ensure that the question asked in relation to the scope afforded to trustees to recognise differences within the pensioner group or deferred group in relation to the new guidance issued by the pensions authority, regarding applying cuts rather than representation rights, that is that a scale of protection to recognise length of service, age, duration and varying contributions made, is included to protect members with long pensionable service and contributions. [22918/14]

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Written answers (Question to Social)

The provisions in the Pensions Act do take the length of service accrued in a pension scheme into account when calculating pension entitlement. For example, consider two members of a scheme, one with 30 years’ service completed and one with 15 years’ service completed. Assume the pension formula is 1/60th of pensionable salary per year of service, both have the same pensionable salary of €30,000 and both are aged 55. The accrued pension of the first member is 30/60ths of €30,000, which is €15,000. The accrued pension of the second member is half this amount, which is €7,500.

Guidance in relation to the assumptions used in the calculation of the value of pension right is reviewed and updated on a regular basis.

Question No. 444 withdrawn