Calculation of benefit where less than 42 years employment
40 Calculation of benefit where less than 42 years employment
S. 40(1) amended by No. 81/1988 s. 22(1)(d)(ii).
A member who was a contributor and contributed continuously under this Act for less than 42 years of effective contributory employment shall upon retirement at, or after attaining the age of sixty years be entitled to proportionately reduced benefits which shall be calculated by multiplying the amount of the lump sum and of the pension which would have been payable to him if he had been a contributor under this Act for 42 years or more and contributed continuously by a fraction being—
—
whichever is the greater.
S. 40(1A) inserted by No. 10258 s. 9(d), amended by No. 81/1988 s. 22(1)(d)(iii)
.
A member shall upon retirement at or after attaining the age of 55 years but before attaining the age of 60 years be entitled—
to receive a lump sum calculated in accordance with the formula
, where—
LS60 represents the amount of the lump sum that would have been payable to the member if the member had continued to be a contributor until attaining the age of 60 years and had then retired;
YA represents the period of contributory service of the member in years;
YP represents the period of contributory service in years which the member would have had if the member had continued to be a contributor until attaining the age of 60 years and had then retired or 42 years whichever is the lesser; and
S. 40(1A)(b) amended by No. 95/2000 s. 14(a).
to receive a pension calculated in accordance with the formula
where—
N represents the amount of the pension that would have been payable to the member if the member had continued to be a contributor until attaining the age of 60 years and had then retired;
YA and YP have the same meaning as in paragraph (a);
C60 represents the lump sum factor at age 60 as prescribed by Schedule 1;
CR represents the lump sum factor prescribed by Schedule 1 with respect to the age in years at which the member retires.
S. 40(2) substituted by No. 9400 s. 13(a), amended by Nos 9657 s. 11(1), 81/1988 s. 22(1)(d)(v)
.
Entitlements under this Part shall be determined on the basis that a person is deemed to have been a continuous contributor for a period or an additional period equal to the number of years not exceeding 42—
S. 40(2)(a) amended by Nos 9978 s. 9(1), 10258 s. 10(x).
for pension entitlements, the period (if any) approved by the Board ending on 1 July 1980 or the period prior to four months after the joining date or prior to the date on which contributions become payable pursuant to section 24(7) (as the case requires) during which he was a permanent employee in continuous employment including any period during which the member was a contributor to the State Superannuation Fund and in respect of which the member is not entitled to a deferred benefit; and
for the lump sum entitlements, one-half of any such period—
and the number of such years shall be calculated by deducting the number of years of continuous service under subsection (1) from his total years of service as a permanent employee.
S. 40(2A) inserted by No. 9657 s. 11(2), substituted by No. 9752 s. 2, amended by Nos 81/1988 s. 22(1)(d)(vii), 24/2006 s. 6.1.2(Sch. 7 item 37.2).
Service by an employee of—
a school council, school committee or other governing body (by whatever name called) of a school or the principal or other person in charge of a school;
an advisory council or other body (by whatever name called) performing advisory functions in connexion with a school; or
any other organization or committee which employs persons at the school to perform work other than teaching work—
prior to the day of incorporation of a school council for the school pursuant to section 2.3.2 of the Education and Training Reform Act 2006 shall be deemed to be service as an employee and shall be taken into account by the Board in calculating the number of years of continuous service of a member.
For the purposes of this Part service shall be deemed to be continuous notwithstanding—
the taking of any annual leave or long service leave;
any absence from work of not more than 48 weeks in any year on account of illness or injury;
any interruption or ending of the employment by the employer if such interruption or ending is made with the intention of avoiding obligations in respect of long service leave or annual leave;
any interruption arising directly or indirectly from an industrial dispute;
the dismissal of an employee if he is re-employed within a period not exceeding six months from the date of such dismissal;
the standing down of an employee on account of slackness of trade;
any absence from work of a woman for a period not exceeding twelve months in respect of any pregnancy;
any other absence of the employee by leave of the employer, or on account of injury arising out of or in the course of his employment;
S. 40(3)(i) inserted by No. 58/1987 s. 11(1)(j).
the receipt by the member of a pension payable pursuant to section 55(1)(b).
Any period of interruption of contribution payments to the Fund in excess of one month shall not be taken into account in calculating benefit entitlements under this Act.
S. 40(4A) inserted by No. 9978 s. 6(3)(b).
Notwithstanding subsection (4) any period in respect of which a member does not pay his contributions by reason of the operation of section 24(4A), (4B) or (4C) shall be taken into account in calculating benefit entitlements under this Act as if it were service as a permanent employee before he became a contributor.
S. 40(5) substituted by No. 9400 s. 13(b).
In determining entitlements under this Part where the period of contributory service, prospective or otherwise, of a person is in excess of 42 years, the Board shall calculate such entitlements on the basis of those 42 consecutive years which give the optimum benefits to that person.
Subject to section 39, benefits payable to a member under this section shall not exceed a sum equivalent to three times his adjusted final salary together with a pension equivalent to 25 per centum of such adjusted final salary.
S. 40(7) inserted by No. 70/2003 s. 13.
For the purposes of subsection (6), if a payment or transfer to a non-member spouse is made for the purposes of Part VIIIB of the Commonwealth Family Law Act 1975 whether under Part IVA or otherwise, the maximum accrued benefit of the member spouse must be adjusted by the Board in accordance with a methodology approved by the Minister, on the advice of an actuary appointed by the Board.
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