Introduction

This model scheme and accompanying explanatory notes have been prepared to assist public sector organisations in the introduction and operation of employee pension schemes. The model scheme is a defined benefit scheme which represents the maximum terms which the Minister for Finance is prepared to sanction in a public sector Employee Superannuation Scheme. If an organisation wishes to provide lesser terms, e.g. a later minimum retiring age or CPI related pensions increases, they should give their reasons for this. In certain exceptional circumstances, the Minister is prepared to consider sanctioning a defined contributions scheme for particular individual employees or groups of employees.

Relevant legislation, in particular the legislation under which the organisation was established, and the explanatory notes, should be read to ensure that any scheme drafted is in accordance with the enabling legislation and takes account of any superannuation terms and conditions pertaining to the staff of the organisation.

The model scheme was drafted to cater for new recruits appointed to public sector organisations established on or after 2 June 2002. It must be modified to suit other cases, e.g. cases where the agreed commencement date of the superannuation scheme is earlier than 2 June 2002 and cases where some of the organisation’s staff were transferred to the organisation with a legislative guarantee that their superannuation terms and conditions will be no less favourable under the new organisation’s superannuation scheme. Suitable draft amendments to cover such items can be obtained from this Department.

When drafting a scheme, the following matters must be taken into consideration.

Initiation and drafting of pension schemes

Employing organisations are responsible for the initiation and drafting of employee superannuation schemes and for ensuring that appropriate arrangements are in place for financing the scheme - it should not be taken for granted that sanction to establish a scheme carries with it a commitment to provide extra funds to meet its cost. Where it is proposed to establish a formal fund, this must be justified and approval obtained separately. The employing organisation is also responsible for dealing with general queries about the provisions of the scheme, while the Department with Ministerial responsibility for the organisation should ensure that the schemes are properly drafted, that they meet all relevant legislative requirements, and that the correct arrangements are made for their signing and sealing, etc. Before a scheme is submitted to this Department it should be checked by the responsible Department and an explanation of any deviation from model scheme terms should be forwarded with it.

Staff transferred under legislation

The legislation establishing a new public sector organisation often includes a provision which guarantees any staff transferred from either the civil service or another public sector organisation on establishment or vesting day an entitlement to conditions (including superannuation provisions) no less favourable than those enjoyed by them in their previous employment. Such guarantees must be honoured in the new organisation’s pension scheme and the scheme modified accordingly. The note on Staff transferred under legislation refers.

Part-time staff

Part-time staff in regular, quasi-permanent employment (including wholetime temporary, regular temporary or seasonal workers, etc.) who are working a minimum of eight hours per week (calculated on the basis of a standard working week) are now eligible for membership of pension schemes. Similarly, with effect from 1 January 2001, previous part-time service which meets these conditions may reckon as pensionable service. The model scheme should be amended accordingly, taking account of the standard working week in the relevant organisation.

Family Law Legislation

Under the Family Law legislation, the spouses of members of superannuation schemes may obtain Pensions Adjustment Orders (PAOs) directing that some portion of a member’s benefits (termed, under the legislation, designated benefit) payable under the scheme should be paid to the member’s spouse, or, in the case of defined contribution schemes, that some of the contributions made for or by the member should be earmarked for the use of the member’s spouse. Such Orders are served on the Trustees of the member’s superannuation scheme (in the public sector, the staff administering the schemes are deemed to be the Trustees) and must be acted on by the Trustees. If there is any conflict between the terms of a valid PAO and the rules of the scheme and/or the provisions of the Pensions Act 1990, the Family Law Legislation overrides the rules of the scheme and/or the 1990 Act. Where acting on a direction from the Court means Trustees taking action contrary to Scheme rules and such action results in loss or damage to a member of the scheme, the Trustees are not liable for such loss or damage. To ensure that they have the protection of the court in the event of this happening, Trustees should request the court to include such a direction to them in the terms of the PAO.

A consolidated circular letter on Family Law legislation and its effect on public sector pension schemes was issued by this Department on 19 December 2001. Copies may be obtained by emailing breda_byrne@finance.irlgov.ie.

Spouses’ and Children’s Scheme

There is a separate Spouses’ and Children’s Model Scheme, copies of which can be obtained by emailing breda_byrne@finance.irlgov.ie. In the case of newly established organisations, membership of the main scheme entails compulsory membership of the associated Spouses’ and Children’s Scheme.

Purchased Service and Professional Added Years

Paragraphs 6.1 (e) and 6.1 (i) of the model scheme provide that where certain conditions are fulfilled purchased service and notional added years of professional/technical/specialist service may be included in the calculation of pensionable service. Further information on purchase and added years scheme may be obtained by emailing eamon_phelan@finance.irlgov.ie.

Amendment of existing schemes

The provisions of the model scheme were drafted to cover the introduction of full PRSI for newly recruited public servants effective from 6 April 1995 and the reduction in the vesting period for pensions with effect from 2 June 2002. Where existing schemes require amending to reflect these changes, it is suggested that they be amended by the substitution or insertion of the appropriate paragraphs from the model scheme with effect from the appropriate date.

General

This circular letter and the accompanying notes should be made available to all public sector organisations under the aegis of your Department/Office, to assist them in operating existing superannuation schemes and in drafting new and amending schemes. Online copies of the scheme and explanatory notes may be obtained by emailing breda_byrne@finance.irlgov.ie.

_______________________

Breda Byrne

Pensions Section

Department of Finance

22 July, 2002

Staff Transferred under Legislation

When staff are transferred to an organisation with a guarantee of the continuance of their existing conditions, including superannnuation provisions, it is essential that the organisation’s pension scheme safeguards their existing superannuation entitlements. Therefore, before drafting the pension scheme, the existing pension terms and conditions of such transferred staff should be ascertained so that they can be embodied in the scheme.

The most common conditions to be covered are:

PRSI class. This should not be changed and such transferred staff continue to pay PRSI at the same rate as they did in their previous employment. In so far as pension schemes are concerned, the PRSI rate may affect the calculation of pension; staff paying full PRSI may have their pensions integrated with the Social Welfare contributory Old Age Pension while staff paying modified PRSI do not. The model scheme covers both categories of employee.

contribution status. This must not be changed. Members of non-contributory schemes who are on non-uplifted salaries (and whose occupational pensions are not, accordingly, integrated with Social Welfare pensions) become members of the new scheme on a non-contributory basis and remain on non-uplifted salaries. Where transferred staff were paying contributions, then the contribution rate should not be increased. Where contribution rates differ from those in the model scheme all references to contributions should be amended.

integration with Social Insurance benefits This is related to PRSI class. All public servants recruited after 6 April 1995 are liable for class A PRSI, pay superannuation contributions and have their pensions integrated with the Social Welfare Old Age Pension. Staff recruited before that date may be subject to other arrangements.

membership of Spouses’ and Children’s Schemes The transfer to the new body does not affect the membership of staff. Staff who were recruited before the establishment of such schemes in the previous organisation and who did not opt to join such schemes will not become members of such schemes by virtue of the transfer, nor may they be offered another option to join such a scheme because of the establishment of the new body. Similarly, staff who are members of schemes whose conditions differ from the scheme established for new recruits (e.g. spouse’s pensions only payable in the event of marriage before retirement) may not be given an option to join the scheme established for the new recruits.

marriage gratuities Some staff, because of the date on which they were recruited, may be eligible for marriage gratuities if they resign shortly before marriage or within the two years following the date of marriage. Where such an entitlement exists, the scheme must include a provision to provide for payment of marriage gratuities to such staff, and all the provisions of the scheme relating to resignation, retirement, refund of contributions and gratuities, etc., must be modified to take account of this.

retirement age Transferred staff may be entitled to retire before, or to serve in a pensionable capacity beyond, the retirement age of newly recruited staff. If so, the scheme must be amended accordingly. The provisions to be amended are the definitions of pensionable service and the calculation of benefits.

Suitable drafts to cover the inclusion of any of the above items can be obtained from this Department.

Contribution Rates

General

The rates in the model scheme are those applying to post April-1995 recruits. Staff liable for modified PRSI, if they are liable for superannuation contributions, have their contributions levied on pensionable pay, not net pensionable pay.

Contributions for previous service

Where contributions are due in respect of previous service, the amounts due should be calculated in the following manner:

Contributions due in respect of service with the organisation prior to the making of a superannuation scheme (paragraph 6 1 (b) refers)

Where there has been a period between the establishment of the organisation and the making of a superannuation scheme, the members of the schemes may reckon the service given during this period on payment of the appropriate contributions. In some cases, such staff are given an option to pay the earlier contribution by way of lump sum within a specified period. If they do not avail of this option, then the appropriate rate of contribution is the rate applicable to contributions from current salary. Payment may be made by way of extra contributions during service or by way of deduction from lump sum payable at time of retirement or death.

Contributions due in respect of previous service under paragraph 6 1 (h) of the scheme

The appropriate rate of contributions is the rate applying at the date the contributions are paid.

Integration with Social Welfare Benefits and supplementary pensions

Where occupational pensions are integrated with Social Welfare benefits, integration should be calculated by reference to nett pensionable remuneration on the member’s last day of pensionable service, irrespective of whether or not the member qualifies for Old Age Pension or any other Social Welfare Benefit on that day. Where the pensioner is not employed and qualifies for less than the maximum rate of Old Age Pension, through no fault of his own, he may qualify for a supplementary pension, equal to the difference between the total of the occupational pension combined with the actual rate of social insurance payment due and the occupational pension which would have been payable had integration not applied.

When a member qualifies for a supplementary pension, he should be notified of the terms and conditions relating to payment of the pension, and, in particular, that it will cease if he qualifies for a Social Welfare pension or benefit equal to or greater than the maximum rate of Social Welfare Old Age (Contributory) Pension. Entitlement to such supplementary pensions must be reviewed each time there is a change in the level of occupational or social insurance pension payable. Such changes may arise from an increase in rates or a change in the type of social insurance benefit payable (a change from benefit to assistance, for example, or a change in the type of benefit payable, e.g. a pensioner in receipt of unemployment benefit qualifying for retirement benefit at age 65). The following examples show how to calculate an integrated pension and how to calculate eligibility for a supplementary pension.

Example 1

A member resigns at age 65 with an entitlement to a pension based on 36 years service. On his last day of pensionable service, his pensionable remuneration is €19,000 per annum and the rate of Old Age Contributory Pension payable to a single person is €135 per week. His pension is calculated as follows

Nett pensionable remuneration

[€19,000 minus €14,088 (twice annual rate of COAP)] = €4,912

Pensionable service = 36 years

Pension (4912 * 36)/80  = €2,210

Actual rate of social insurance benefit payable €125 per week = €6,522 per annum

Total pensions payable €6,522 (Social Welfare) plus €2,210 = €8,732

Pension payable had occupational pension not been subject to integration = (€19,000 * 36)/80 = €8,550

Since the total pensions payable exceeds the pension payable had integration not applied, no supplementary pension is payable.

Example 2

A member retires on medical grounds at age 59 and qualifies for the full rate of Disability Benefit of €108 per week or €5,635 per annum. Reckonable pensionable service is 40 years and pensionable remuneration is €19,000. The occupational pension payable is calculated as in Example 1 by reference to Old Age Pension of €96 per week and is (€4,912 * 40(/80 = €2,456

Annual rate of Social Welfare Pension payable is €5,635

Total pensions payable (€5,635 plus €2,456) is €8,091

pension payable had integration not applied €19,000 * 40/80 = €9,500.

The member may, therefore, qualify for a supplementary pension of €1,409 per annum which amounts to the difference between the total of the occupational pension and social insurance pensions actually payable (€8,091) and the pension payable had integration not applied (€9,500).

Pensions Increases as applied to integrated pensions

When increasing integrated pensions, whether pensions in the course of payment or preserved pensions, the system used is to increase the occupational pension by reference to pensions increases awarded since the pension was first calculated. In no circumstances should the pension be recalculated by reference to changes in the rate of Old Age Pension which occur after the last day of pensionable service.

To apply a pension increase of 5% to the occupational pensions at date of retirement in examples 1 and 2 above, all that is necessary is to increase the occupational pension by 5%. Where pensions increases are calculated by reference to pay increases, the pension should be recalculated by reference to the revised nett pensionable remuneration. In examples A and B, the revised rates of pension would be calculated as follows

Salary at date of retirement €19,000 per annum.

Salary at date of pension increase €20,900 per annum.

Percentage increase in salary 10%.

Occupational pension in course of payment (Example 1) = €2,210

pension increased by 10% = €2,431

Occupational pension in course of payment ( Example 2) = €2,456

pension increased by 10% = €2,701

Options

Option to join new scheme Where serving employees are given an option to join a newly established public sector superannuation scheme, the following guidelines should apply:

the option should be offered to all serving employees who meet the scheme’s membership criteria. In this connection, employees who are members of an existing scheme approved by the employer must, if they opt to join the new scheme, end their membership of the existing scheme.

the option must include automatic membership of the associated Spouses and Children’s Pension Scheme; it is not possible to opt into one scheme and remain outside the other scheme.

the option should take the form of opting to join the new scheme - members not availing of the option should be deemed to have opted out of membership.

the option must be offered on an once-off, irrevocable basis.

there should be a clearly defined time limit within which the option must be exercised.

It is suggested that, when offering such an option, employees should be given as much information as possible on the terms and conditions of the new scheme and asked to acknowledge, in writing, the offer of the option to join the new scheme. They should also be asked to acknowledge that they are aware that failure to join the scheme before the closing date means they forfeit the right to join the scheme at a later date. Where employees do not acknowledge receipt of forms, or do not return forms, this fact should be recorded on their personnel file.

Option between preserved benefits and gratuities Where members retire on medical grounds with between two and five years actual pensionable service they should be given a once-off, irrevocable option of accepting gratuities (see paragraph 7.2 of the scheme) in lieu of preserved superannuation benefits (see paragraph 7.3 of the scheme).

All such options must be given in writing and should include the following information:

an estimate of the benefits available under each option, the estimate of preserved benefits to include spouse’s and children’s benefits and the conditions applying to payment of such benefits

a statement that where the member opts to receive the short service gratuities, contributions paid under the Spouses and Children’s Scheme will be refunded and that the refund will discharge the organisation’s liabilities under that scheme.

the time-limit within which the option must be exercised.

Where the member does not exercise an option within the time limit specified he should be deemed to have opted for preserved benefit and notified accordingly.

Model Employee Superannuation Scheme

Index

Paragraph

1 Short Title

2 Commencement

3 Definitions

4 Membership

5 Pensionable Remuneration

6 Pensionable Service

7 Benefits

8 Retirement on Medical Grounds

9 Payment of Pension or Preserved Pension

10 Pensions Increases

11 Contributions

12 Employment Subsequent to Retirement or Resignation

13 Cesser or Reduction of Benefit

14 Conditions Governing Awards

15 Assignments

16 Duplication of Benefit not to be allowed

17 Contributions to Certain Organisation

18 Appeals

19 Termination or Amendment of Scheme

MODEL EMPLOYEE SUPERANNUATION SCHEME 200-

PREAMBLE

1. SHORT TITLE

This Scheme may be cited as the Employee Superannuation Scheme, 200-.

2. COMMENCEMENT

The Scheme will commence with effect from the , which shall be known as the date of commencement.

3. DEFINITIONS

In this Scheme save where the context otherwise requires:

3.1 "X" means the organisation in question;

3.2 "actual pensionable service" means service as defined in subparagraph 6.1 of this scheme but excluding service which is reckonable under Clauses (c)(ii), (e), (f) and (i) or any notional service transferred under Clause (d) of that subparagraph;

3.3 "fully insured member" means a member of this Scheme who is insured for Old Age Contributory Pension under the Social Welfare Acts;

3.4 "job-sharing" means the sharing of a whole-time post by two employees under any scheme or arrangement which has been approved by the Minister;

3.5 "Knock-for-Knock Agreement" under the Local Government Superannuation Code means an agreement under articles 279(8) and 280 of the Local Government (Superannuation) (Consolidation) Scheme, 1998;

3.6 "Local Authority" has the meaning assigned to it in the Local Government (Superannuation) (Consolidation) Scheme, 1998 and in addition includes any body to which schemes and regulations under the Local Government (Superannuation) Act, 1980 (No. 8 of 1980) apply;

3.7 "Local Government Superannuation Code" means any scheme or regulation made under the Local Government (Superannuation) Act, 1980 (No. 8 of 1980) other than the Local Government (Superannuation) (Gratuities) Regulations, 1984 (as amended) or the provisions of Part V of the Local Government (Superannuation) (Consolidation) Scheme, 1998;

3.8 "member" means a pensionable employee to whom this Scheme applies;

3.9 "Minister" means the Minister directly responsible for the "X"; insert the name and title of the appropriate Minister

3.10 "personal rate" in relation to any Social Welfare benefit, means the rate of such benefit which is payable under the Social Welfare Acts to a single person excluding any increase that is payable on age grounds, or by virtue of the recipient living alone, or in respect of a qualified adult or child dependant, and "maximum personal rate" shall be construed accordingly;

3.11 "reduced rate" in relation to any Social Welfare benefit, means the personal rate of such benefit if that rate is less than the maximum personal rate of Contributory Old Age Pension;

3.12 "Social Welfare Acts" means the Social Welfare Acts 1981 to 200- including any enactment which amends or extends any or all of those Acts and any regulation, warrant or order made thereunder.

3.13 "Social Welfare Benefit" means Contributory Old Age Pension, Retirement Pension, Invalidity Pension, Disability Benefit or Unemployment Benefit payable under the Social Welfare Acts;

3.14 "transfer value payment" means a payment calculated in accordance with such tables as are approved and in such manner as is determined by the Minister for Finance under this scheme, or the Minister for the Environment and Local Government under the Local Government Code;

3.15 "years" means a figure determined by the formula A + B/365 where A is the number of completed years in the period in question and B is any number of days additional to a completed year or a number of completed years in that period, and "year" shall be construed accordingly;

3.17 Words importing the masculine gender shall, unless the contrary intention appears, also import the feminine gender.

4. MEMBERSHIP

4.1 For the purposes of this Scheme

(a) "pensionable employee" means a person who is employed by the "X" in a pensionable post;

(b) "pensionable post" means a post with the "X" which

(i) in the case of a post existing on the date of approval of the Scheme, is a post which is declared within three months from the date of approval by resolution of the "X" to be a pensionable post;

(ii) in any other case is a post which is declared in the Conditions of Service attaching to it to be a pensionable post.

4.2 Membership of this Scheme shall not apply to persons

(a) who are in membership of a retirement benefit scheme of any body associated with the "X", or

(b) whose actual pensionable service on attaining age 65 would be less than two years,

(c) who do not satisfy the "X" (either at the time of first appointment, or at such time thereafter as the "X" may determine), that they are in good health and free from any physical defect or any disease which may interfere with the proper discharge of their duties, or

(d) who are under 16 years of age.

4.3 Membership shall be compulsory for all pensionable employees, other than those referred to in subparagraph 4.2.

4.4 The "X" shall decide upon the eligibility for membership of the Scheme. The "X" shall notify an employee of his admission to membership of the Scheme and shall furnish him with a copy of the terms of the Scheme.

4.5 A member may not continue in membership after he has attained the age of 65.

5. PENSIONABLE REMUNERATION

5.1 Salary

"Salary" means the annual basic rate (or the weekly basic rate multiplied by 52.18) of remuneration payable from time to time as lawfully determined or lawfully approved by the "X", excluding any sums paid in respect of overtime, commission, gratuity, special fees, travelling allowance, subsistence allowance and the like, the money equivalent of any emolument or benefit in kind (including motor car or other vehicle) or any payment toward or in respect of such emoluments.

5.2 Allowances

"Allowances" means such allowances in the nature of pay lawfully determined or lawfully approved by the "X", which are designated as pensionable by the "X", but excluding any sums paid in respect of overtime, commission, gratuity, special fees, travelling allowance, subsistence allowance and the like, the money equivalent of any emolument or benefit in kind (including motor car or other vehicle) or any payment toward or in respect of such emoluments.

5.3 Remuneration

"Remuneration" means the aggregate of salary and allowances (multiplied by 52.18 in the case of weekly allowances).

5.4 Net remuneration

"Net remuneration" means the amount by which remuneration exceeds twice the annual maximum personal rate of Old Age (Contributory) Pension payable from time to time.

5.5 Retiring salary

"Retiring salary" means the salary of the member at the date of retirement or death where -

(a) a member has had the same scale of salary and has been in the same grade for the last three years of his pensionable service, or

(b) a member who is under 62 years of age dies in service, or

(c) a member retires or is retired on medical grounds before 60 years of age with sufficient potential service to age 60 to avoid averaging.

In any other case retiring salary shall be taken as the total calculated by multiplying by 1/1095 the annual rate of salary appropriate on the last day of pensionable service for each grade in which the member served during the last three years of pensionable service, and multiplying the result by the number of days of his employment in each grade during those years, subject to the retiring salary so taken not exceeding the annual basic rate of salary payable at the time of retirement or death.

5.6 Pensionable allowances

"Pensionable allowances" means the annual average of any allowances paid to the member during his last three years of pensionable service.

5.7 Pensionable remuneration

"Pensionable remuneration" means the aggregate of retiring salary and pensionable allowances provided that, in the case of a member who is job-sharing at retirement, pensionable remuneration shall be deemed to be the pensionable remuneration applicable in his case if he were not job-sharing.

5.8 Net pensionable remuneration

"Net pensionable remuneration" means the amount by which pensionable remuneration exceeds twice the annual maximum personal rate of Old Age (Contributory) Pension payable on the last day of pensionable service to a person who has no adult dependant or qualified children.

6. PENSIONABLE SERVICE

6.1 Pensionable service shall, subject to a maximum of 40 years, be the aggregate of -

(a) paid service as a pensionable employee given on and from the date of commencement, and while the member was under 65 years of age, and in respect of which contributions have been paid provided that any period during which a member was or is job-sharing shall reckon as to one-half that period only;

(b) whole-time paid service with the "X" prior to the date of commencement, in respect of which contributions have been paid;

(c) (i) actual service which is reckonable under the Local Government Superannuation Code,

(ii) notional service purchased under the provisions of Part V of the Local Government (Superannuation) (Consolidation) Scheme 1998;

(d) service reckonable in accordance with section 4 of the Superannuation and Pensions Act, 1963;

(e) in the case of a member whose pensionable service by age 65 would be less than 40 years, extra years of pension credit, subject to limits to be determined by the "X", with the approval of the Minister and in consultation with the Minister for Finance, which he opts to purchase at full cost to himself on the basis of actuarial tables approved by the Minister for Finance;

(f) in the case of a member in respect of whom a transfer value in respect of superannuation benefits in a former employment other than employment referred to in subparagraphs 6.1(c) and 6.1(d) of this Scheme is received by the "X", such additional service as the amount of the transfer value will purchase on the basis of actuarial tables approved by the Minister for Finance.

(g) any periods of paid part-time service of at least 18 hours a week given with the "X" prior to becoming a pensionable employee reckonable in the proportion which the hours worked bear to comparable whole-time service and in respect of which appropriate contributions have been paid;

(h) any periods of whole-time temporary service with "X" prior to becoming a pensionable employee in respect of which contributions have been paid;

(i) such additional period of notional service (to be referred to as "professional added years") as may be granted by the "X" in accordance with conditions determined by the "X" with the approval of the Minister and the consent of the Minister for Finance.

6.2 (a) A member who has completed five or more years of actual pensionable service and who retires, or is retired, on medical grounds in accordance with the provisions of paragraph 8.1 of this scheme, may, at the discretion of the "X," have a period of notional service (to be referred to as "ill-health notional service") added to his pensionable service, provided that the aggregate of pensionable service and ill-health notional service does not exceed 40 years.

(b) The ill-health notional service shall be calculated on the following basis:

(i) members whose actual pensionable service is between five and ten years will be allowed an equivalent amount of ill-health notional service, such amount of notional service not to exceed the amount by which the pensionable service he would have had if he served to age 65 exceeds his pensionable service at retirement;

(ii) members whose actual pensionable is between ten and 20 years will be allowed the more favourable of:

(a) an amount of service equal to the period by which 20 years exceeds the said actual pensionable service, the added service not to exceed the amount by which the pensionable service he would have had if he served to age 65 exceeds his actual pensionable service at retirement, or

(b) 6 years and 243 days, the ill-health notional service not to exceed the amount by which the actual pensionable service he would have had if he had served to age 60 exceeds his actual pensionable service at retirement;

(iii) members with more than 20 years of actual pensionable service at retirement will be allowed to add whichever is the lesser of:

(a) 6 years and 243 days, or

(b) the amount by which the pensionable service he would have had if he had served to age 60 exceeds his pensionable service at retirement.

7. BENEFITS

7.1 Pension

(a) A member who has completed two years’ actual pensionable service and who retires, or is retired, after attaining the age of 60 years shall be eligible to receive a pension of an amount per annum calculated at the rate of 1/80th of his pensionable remuneration (as defined in subparagraph 5.7) or, in the case of a fully insured member, of his net pensionable remuneration (as defined in subparagraph 5.8) for each year of pensionable service, subject to a maximum of 40/80ths.

(b) A member who has completed five years’ actual pensionable service and who retires, or is retired, before or after reaching the age of 60 on medical grounds in accordance with the provisions of paragraph 8.1 of this scheme shall be eligible to receive a pension of an amount per annum calculated at the rate of 1/80th of his pensionable remuneration (as defined in subparagraph 5.7) or, in the case of a fully insured member, of his net pensionable remuneration (as defined in subparagraph 5.8) for each year of pensionable service, subject to a maximum of 40/80ths.

7.2 GRATUITIES

(a) A member who has completed at least one year and less than two year’s actual pensionable service who retires or is retired on medical grounds in accordance with the provisions of paragraph 8.1, shall be eligible to receive a gratuity of 1/12th of pensionable remuneration (as defined in subparagraph 5.7) for each year of pensionable service.

(b) A member who has completed between two and five years actual pensionable service who retires or is retired on medical grounds in accordance with the provisions of paragraph 8.1, shall be eligible to receive a gratuity at the rate of 1/12th of pensionable remuneration (as defined in subparagraph 5.7) for each year of pensionable service and, in addition, a gratuity equal to 3/80ths of his pensionable remuneration for each year of pensionable service, provided he opts in writing to accept such gratuities in lieu of the benefits payable under paragraph 7.3 of this scheme.

(c) A member who has completed two years’ actual pensionable service and who retires or is retired after attaining the age of 60 shall be eligible to receive a gratuity at the rate of 3/80ths of pensionable remuneration (as defined in subparagraph 5.7) for each year of pensionable service subject to a maximum of 120/80ths.

(d) A member who has completed at least five years actual pensionable and retires or is retired on medical grounds in accordance with the provisions of paragraph 8.1, shall be eligible to receive a gratuity at the rate of 3/80ths of pensionable remuneration (as defined in subparagraph 5.7) for each year of pensionable service subject to a maximum of 120/80ths.

(e) (i) If a member dies while serving, his legal personal representative shall be eligible to receive the greater of -

(a) his pensionable remuneration (as defined in subparagraph 5.7), or

(b) the gratuity that would have been payable had the member retired on medical grounds on the date of his death.

(ii) If a former member who has been granted a pension and a gratuity dies and the total paid or payable on foot of the pension and gratuity (including any amount which would have been payable had the provisions of paragraph 12.4 not applied in his case) is less than the gratuity which could have been granted to his legal personal representative if he had died on the date of his retirement, his legal personal representative shall be eligible to receive a gratuity equal to the deficiency.

7.3 Preservation of Benefits

(a) Where a member

(i) ceases to be a member before age 60 other than in accordance with the provisions of paragraph 8.1 after at least two years’ actual pensionable service or

(ii) ceases to be a member before age 60 in accordance with the provisions of paragraph 8.1 after at least two years and less than five years actual pensionable service and does not opt, in writing, for the benefits of subparagraph 7.2 (b),

he will, on attaining the age of 60, qualify under this paragraph for a pension and lump sum payment (which pension and lump sum are in this Scheme referred to as a "preserved pension" and "preserved lump sum" respectively), provided

(a) he does not receive any other benefit in respect of that service, and

(b) that service is not reckoned for pension purposes by him in another employment under approved arrangements.

(ii) If a person referred to in subparagraph (a) of this paragraph dies before attaining the age of 60, a sum (in this Scheme referred to as a "preserved death gratuity") shall be payable to the person’s legal personal representative by the "X" in respect of him.

(iii) A preserved lump sum or preserved death gratuity shall be payable to or in respect of the person concerned on an application being made to the "X" by him at any time after he reaches the age of 60 or, in case he dies before reaching that age, by his legal personal representative.

(iv) A preserved pension shall be payable to the person concerned on and from his attaining the age of 60 on an application being made by him in that behalf.

(v) The "X" may at its discretion pay a supplementary pension on the terms and conditions set out in subparagraph 7.4 of this scheme.

(b) A preserved pension may not exceed an amount obtained by the formula -

(A X B)/80 where,

A is the number of years of pensionable service, subject to a maximum of 40, as calculated under subparagraph 6.1 and

B is the figure arrived at by increasing his pensionable remuneration (as defined in subparagraph 5.7) or, in the case of a fully insured member, his net pensionable remuneration (as defined in subparagraph 5.8) at date of resignation by reference to pensions increases granted under paragraph 10 of this Scheme in the interval between the date of resignation and the date on which the person attains the age of 60.

(c) A preserved lump sum or preserved death gratuity may not exceed an amount obtained by the formula -

(3A X B)/80 where,

A has the meaning assigned to it by subparagraph (b) of this paragraph, and

B is the pensionable remuneration (as defined in subparagraph 5.7) at date of resignation of the person concerned, as increased by reference to pensions increases granted under paragraph 10 of this Scheme in the interval between the date of resignation and the date

(a) on which he attains the age of 60, in the case of a preserved lump sum, or

(b) of his death, in the case of a preserved death gratuity.

7.4 Supplementary Pension

(a) Where a person who is in receipt of a pension under of this scheme is unemployed, and, due to causes outside his own control:

(i) fails to qualify for Social Welfare benefit or

(ii) qualifies for Social Welfare benefit at a reduced rate then for so long as the preconditions set out in this paragraph are complied with, the person concerned may, at the discretion of the X, be paid a supplementary pension under this Scheme.

(b) The amount of a supplementary pension payable pursuant to subparagraph (a) of this paragraph shall be the amount, if any, arrived at by the formula

A - (B+C), where A is the amount of the pension which would be payable to the former member under paragraph 7.1 of this scheme if such pension had been calculated by reference to pensionable remuneration rather than net pensionable remuneration, B is the amount of the pension actually payable to the former member under the said paragraph 7.1 and C is the annual amount of the reduced rate of the Social Welfare benefit, if any, which is payable to the former member.

7.5 Return of contributions

In the case of a member who

(i) has completed less than two years actual pensionable service and

(ii) whose membership ceases otherwise than on medical grounds or death and

(iii) who does not transfer his pensionable service under this scheme to another organisation in accordance with arrangements approved by the Minister for the Environment and Local Government and/or the Minister for Finance (Delete as appropriate)

his contributions shall be paid to him less an amount equal to any income tax liability by the "X" in respect of such contributions.

8. RETIREMENT ON MEDICAL GROUNDS

8.1 Where a member retires or is retired on medical grounds, a benefit under subparagraph 7.1 and/or 7.2 of this scheme shall only be made where the following conditions are met:

(a) Medical evidence must be supplied, having regard to which the "X" is satisfied that the member is incapable from infirmity of mind or body of discharging the duties of his post and that that infirmity is likely to be permanent. In this connection, the member must, if requested by the "X," undergo medical examination by a registered medical practitioner nominated by the "X."

(b) The retirement must be wholly due to the infirmity.

(c) The infirmity must not have been caused by the member’s own fault or negligence.

(d) The member must not -

(i) have made a false declaration about his health, or

(ii) have suppressed a material fact about his health

when applying to take up his post in the "X."

8.2 Where any or all of the above conditions are not met, subparagraph 7.3 shall apply in lieu of benefit under subparagraph 7.1 and/or 7.2.

9. PAYMENT OF PENSION OR PRESERVED PENSION

Save as is otherwise provided in the scheme, pensions and preserved pensions payable under this Scheme shall be paid (insert frequency of payment) in arrears and shall continue throughout the life of the member.

10. PENSIONS INCREASES

The "X" may grant such increases in such pensions and preserved pensions under this Scheme as may be authorised from time to time by the Minister with the consent of the Minister for Finance.

11. CONTRIBUTIONS

11.1 Every member shall pay a contribution as from the date of entry to the Scheme or from the date he took up employment with the "X," in the case of a member in the service of the "X" on the commencement date.

11.2 The contribution shall comprise 5% of remuneration (as defined in subparagraph 5.3) or, in the case of a fully insured member,

(a) 3.5% of net remuneration (as defined in subparagraph 5.4), and

(b) 1.5% of remuneration (as defined in subparagraph 5.3)

provided that in the case of a member who is job-sharing, sub-clause (a) above shall apply as if the word "twice" were deleted from the definition of remuneration or, in the case of a fully insured member, net remuneration.

11.3 Where a member is in receipt of a reduced rate of pay because of absence from employment, the contributions in respect of that period will be calculated by reference to the rate of pay that would be payable to him if he were not so absent.

11.4 An actuarial revaluation of the Scheme may be carried out from time to time if the "X" so decides and the "X" retains the right to vary the contributions payable by the members.

12. EMPLOYMENT SUBSEQUENT TO RETIREMENT OR RESIGNATION

12.1 Where a member whose contributions have been returned to him under subparagraph 7.5 is re-employed by the "X" in a pensionable position, his previous pensionable service may be reckoned for the purpose of calculating superannuation subsequently, provided he refunds to the "X" the amount of the contributions including interest paid to him with compound interest on such amount at the rate of six per cent per annum with half-yearly rests from the date of payment to him. The "X" may, at its discretion, agree to accept such refunds by instalments, provided interest on the basis outlined above continues to be paid on the outstanding balance.

12.2 Where a member whose contributions have been returned to him under subparagraph 7.5 subsequently becomes employed in a pensionable position in which his previous pensionable service is capable of being reckoned under the Local Government Superannuation Code, his previous pensionable service may be reckoned for superannuation subsequently, provided he refunds the amount of the contributions including interest paid to him with compound interest on such amount at the rate of six per cent per annum with half-yearly rests from the date of payment to him.

12.3 If a member who retires or is retired on medical grounds subsequently becomes a pensionable employee before attaining the age of 65 years and has been awarded a pension and gratuity or gratuity only on initial retirement, pension, where payable, shall be cancelled on his re-appointment and his previous pensionable service shall be reckoned for the purposes of calculating pensionable service subsequently but the amount of any gratuity awarded on eventual retirement or death or any payment in accordance with subparagraph 7.2 shall be reduced by the amount of the gratuity paid to him on initial retirement.

12.4 If a pensioner under this Scheme receives payment in respect of employment by the "X" or by any person or firm resident in the Republic of Ireland and associated with or directly or indirectly controlled by the "X" no more of the pension or preserved pension shall be paid for any period of receipt of the payment as may be specified by the "X" than so much as, with the payment, equals the pay which the person would have received in respect of that period if during it he

(a) held the position in which he served on the last day of his pensionable service, but

(b) was remunerated at the rate of pay of which he was in receipt on that date (including the money value of apartments, rations or other perquisites in kind), subject, however, in case changes have taken place, (or, if the position has ceased to exist would have taken place if it had not ceased to exist), in that rate, to treating that rate as being varied by taking account of so much of those changes as may be specified by the "X".

13. CESSER OR REDUCTION OF BENEFIT

13.1 Where a member is dismissed or resigns or otherwise ceases to hold employment and has been guilty of misconduct involving a financial loss to the "X" or the State, the "X" may, at its discretion, refuse or reduce any award which might otherwise be payable under paragraph 7 of this Scheme (including a return of contributions under subparagraph 7.5) in order to make good such a loss.

13.2 The "X" may, at its discretion, reduce or cease paying a pension awarded under this Scheme if the pensioner has been guilty of misconduct involving a financial loss to the "X" or the State, in order to make good such a loss.

14. CONDITIONS GOVERNING AWARDS

14.1 Declarations

Payments of pension or preserved pension under this Scheme shall be subject to the making by the pensioner of a relevant declaration in such form and at such time as the "X" may require.

14.2 Proof of age

A member must submit evidence of his date of birth on entry into the Scheme or before any payment of benefit can be made.

15. ASSIGNMENTS

A pension or preserved pension under this Scheme may not be assigned or charged. If the pensioner becomes incapable of giving a receipt for payments due, the "X" shall have discretion to make such payments in whole or in part to such persons, including the authorities of any institution having care of the pensioner, as the "X" thinks fit, and the "X" shall be discharged from all liability in respect of any sum so paid.

16. DUPLICATION OF BENEFIT NOT TO BE ALLOWED

16.1 (a) A member shall not be entitled to reckon the same period of time more than once for the purposes of a pension or gratuity, unless in the case of a gratuity, having been entitled to repay such gratuity, he has done so.

(b) A member shall not be entitled to reckon the same period of time both for the purposes of this scheme and also for the purposes of any other superannuation scheme which is financed largely or wholly from voted moneys.

16.2 Where a member’s employment with the "X" ceases (whether on retirement, death or otherwise), benefit under this Scheme shall be reduced by reference to any sum, other than one to which the prior approval of the Minister for Finance had been obtained, which is payable to or in respect of him on such cesser, other than under this Scheme, by the "X," or under any arrangement (whether by way of insurance or otherwise) to which the "X" has contributed.

17. CONTRIBUTIONS TO CERTAIN ORGANISATIONS

17.1 Where a superannuation award is made by a local authority to any person under the provisions of the Local Government Superannuation Code and in determining the amount of the award any period of pensionable service with the "X" has been reckoned, the "X" shall, in the absence of a Knock-for-Knock Agreement under the Local Government Superannuation Code, make a single transfer value payment or a series of contributions to the local authority, as may be agreed between the local authority and "X", and such payment or contributions shall be in accordance with such tables or rates as may be approved by the Minister for the Environment and Local Government.

17.2 Where under the Local Government Superannuation Code, superannuation contributions are returned by a local authority to a former member of this scheme, and the amount includes a sum in respect of contributions paid under this scheme, the "X" shall, in the absence of a Knock-for-Knock Agreement under the Local Government Superannuation Code, recoup such sum to the local authority.

18. APPEALS

18.1 If a member or former member is aggrieved by the failure or refusal of the "X" to make an award under this Scheme or by the amount of any award made, he may appeal to the Minister who shall refer the dispute to the Minister for Finance whose decision shall be final.

18.2 An appeal against a failure to make an award shall be made within eight months after the occasion in respect of which the award is claimed and any other appeal shall be made within six months after the decision to which it relates.

19. TERMINATION OR AMENDMENT OF SCHEME

The "X" reserves the right to amend or terminate the Scheme at any time, subject to the approval of the Minister and the concurrence of the Minister for Finance and subject to giving three months’ notice of impending changes to members of the Scheme. Benefits secured for a member or former member prior to the date of amendment or termination will not be affected.