State Pension costs unsustainable?


What’s that rattling sound? oh yeah its the sound of the can being kicked down to the road to be dealt with by future politicians when our current lot will be enjoying their index linked PS Defined Benefit pensions.


We’ll ignore the dramatic headline. Basically any public servant hired
Pre 1995 paid no PRSI (class B)
Post 1995 pay PRSI (class A1)

Post 1995 pension is based off
Total entitlement = State Pension contributory + balance by exchequer

as State Pension contributory heading towards 68, the contractual entitlement above will be missing from 65-68 so the full balance comes from exchequer for those 3 years.

retire 65 when SPC was 65
Total entitlement = State Pension contributory + balance by exchequer
40K = 13K + 27K

retire 65 when SPC is 68
65-67: 40K = 0K + 40K
68: 40K = 13K + 27K

More concerning is the Minister a the time, Brendan Howlin saying

He also stated: “As only 25 years have passed since its introduction in 1995, and public servants can now work up to the age of 70, it is likely very few, if any have availed of it.”

Loads of people start after 40 in the public service. There will be 100s, if not a few thousand, already availing of this.

A PQ on exact numbers anyone?


It is correct to say that Supplementary Pensions have the effect of insulating post 1995 Public servants from the effects of the OA Pension age rising but that is a side-effect rather than a planned outcome AFAIK. It was introduced long before the OA Pension age was increased and the aim seemed to be equality between those pre 1995 Public servants none of whose pension came from the OA Pension and those Post 1995 for whom maybe a third would come from the OA Pension.

It should be noted that you can’t work if you receive it and you must sign-on to exhaust jobseekers and any other SW payments before you get it.



The way things are going, the pensions crisis is being solved by COVID-19.


The total liability yes, the burden not so much.