There was a time when you almost needed a degree in pension planning to calculate an Irish public service pension. Since the introduction of the Single Public Service Pension Scheme this is no longer true.
Teachers or other public sector employees do not need to check a long list of terms and conditions anymore. Once you enter the public service, to a pensionable position, you are on the same scheme as all other employees.
Older public service pension schemes were known as final salary pension plans. The salary on the final day of employment decided what pension remuneration you would receive. When pension planning, you want the security of knowing what your income will be on retirement. You do not want to be hoping for a promotion in your latter years to make all the difference.
New entrants now have security in pension planning. The Single Public Service Scheme is what is known as a Career-Average Defined Benefit Pension Scheme. From day one in your public service post, a percentage of your salary is paid into the scheme. You continue to pay a deducted amount throughout your public service career.
Deductions are paid into the pension scheme to pay for the lump sum and retirement pension. The higher your pay scale, the more you will be contributing. Adjustments are made for fluctuations in inflation, which gives the entrant another level of security.