Principal Pension Scheme
A brief outline of the main provisions of the pension scheme is provided in the
following notes. For further information you should contact the Local
Authorities Pension Fund or read the Rules of the Principal Pension Scheme.
The Contribution Rate
totals 23.3% made up as follows:
- Emplooyer 17,3 %
- Employee 6%
- Total 23,3%
- Eligibility-All Local Authority Employees who are under the age of 60 years are
- Retirement age - 55 to 65 and is optional to the contributor
1) Early retirement
- 3% per annum reduction for each year below 60
2) Normal Retirement
- 60 years- 100% benefit payable
3) Late Retirement
- 6% per annum incremental factor for each year above
60 years (maximum of 65 years)
4) Ill Health Retirement
4.1) 10 or more years of service pension calculated based at age 60 i.e. 100%
4.2) 5 years or less than 10 years one receives a specially calculated pension as
advised by the Actuary.
5) Pension Benefit - Defined benefit based on average annual salary over the last
24 months preceding retirement and current accrual rate is 1/600 for each month
of service. Pension is guaranteed for 7 years and thereafter for life.
6) Pre-retirement spouse's pension- 25% of annual salary at date of death.
7) Children's Pension- Maximum of 3 children at any one time.
7.1) If member leaves spouse :
3 children - 50% of widow's pension
2 children -37,5% of widows pension
1 child - 25% of widow's pension
7.2) If member leaves no spouse:
3 children -100% of pension that would have been payable to
the widowed spouse whichever is greater.
2 children -75% of pension that would have been payable to
the widowed spouse.
1 child-50% of pension that would have been payable to the
8) Death Benefits
2x(accumulated contributions plus 1/400 for each month of service) plus a
spouse's and children's pension as in 5 and 6 above
9) Death after retirement
Lump sum of the unexpired guaranteed period and thereafter a spouse and orphans
pension based on salary at retirement.
10.1) A refund of contributions plus interest accrued at 1/400 for
each month of service plus employer's portion computed according to he sale
Number Of years Of Service
% of Employers Portion Plus Interest
Less than 5 years
10.2) Accumulated interest in the fund is payable if pensionable service amounts to
15 years or more and the contributor is below the age of 55. This benefit
is payable on condition that the entire capital sum is utilised to purchase a
retirement annuity from a registered insurance company.
Dependant on the age at retirement (i.e. 55-65 years)
OOne third of pension can be commuted for a single cash sum.
6% employee, 17,3% employer but reviewed every 3 years by the Fund's Actuary
13) Pension Increases
Determination by the management Committee on an annual basis taking into account
inflation and the Fund's Actuary's recommendation.
14) Voluntary Additional Contributions
Payment of additional contributions to purchase and additional pension or
relevant past service is permitted. This enables contributors to enhance their
pensions on retiring.