Irish Single Public Service Pension Scheme
The Single Public Service Pension Scheme (SPSPS) is a career-average defined benefit pension scheme that was launched on 1st January 2013.
If someone became employed in the public service after this date, and are working in a pensionable post, it is likely that they will be a contributing member of the scheme.
- Launched Jan 1st 2013
- Thousands of members… And growing!
- Over 350 Relevant Authorities
- Annual Returns for every employee.
- Ever Changing figures
Since the beginning of the SPS scheme, by law all Relevant Authorities, must produce annual benefit statements for their current and past employees, as well as producing a set of fixed-format returns for the Department of Public Expenditure and Reform (DPER) each year.
History & Application
The Single Scheme, which was introduced from 1 January 2013 under the Public Service Pensions (Single Scheme and Other Provisions) Act 2012 .
Every new joiner to a public service position will be entered into this pension scheme. There are others who may be applicable, such as those who re-joined the public service and did not qualify for any previous pension scheme.
Although the SPS will be the majority pension scheme, it is still necessary for public service bodies to continue to operate pre-existing pension schemes for those staff members who are not entitled to SPS membership.
The Single Pension Scheme streamlines pensions for both employers and employees in the public service, allowing them to focus in on one set of requirements as the scheme grows and pre-existing schemes end.
What are relevant authorities?
Each of the 350+ Public Service employers to which the terms of the Single Scheme apply is called a Relevant Authority. Each Relevant Authority (RA) is responsible for administering the Scheme for its members. A full list of all relevant authorities is available online.
Things to know for Employers
Navigating the Single Public Service Pension Scheme is key for all relevant authorities. As an employer, you are responsible for the accurate implementation and employee information.
As an employer, you must be aware of;
- Membership to the pension scheme: Correctly classifying new employees’ pension scheme based on their full public service history.
- Pension Contribution’s, Deductions & Remittance: Deducting employee contributions and remitting them as required.
- CPI Adjustments – Each member’s benefits will be adjusted to take into account positive inflation. Each January, the Minister of Department of Expenditure and Reform will announce the CPI rate that applies to the Single Pension Scheme for the previous year.
- Generating Member Annual Benefit Statements: All Members of the SPS must receive annual benefit statements by June 30th.
- Potential Employer Contributions: Understand if your organisation contributes employer contributions. Note that employer contributions are not mandatory for each RA.
- Employee Information: Provide clear details about the Single Scheme and entitlements to all employees.
- Other Changes During Scheme Admittance – The SPS is a complex but in-demand service to public sector employees. With many changes year on year, it is vital that employers invest in their SPS process.
SPS Requirements
Annual Benefit Statements
Each year, employees should receive statements from their current and former employers outlining their contributions and the associated pension and lump sum referable amounts they have accrued.
These statements are a summary of scheme benefits, up until the end of that statement year. The annual benefit statements for the previous year should be sent to all employees of the SPS before June 30th.
DPER Databank
Each Relevant Authority is required to make yearly submissions to the Department of Public Expenditure and Reform (DPER)’s Single Scheme Databank. This online portal requires employers to upload specific templates each year.
It was created to ensure that member data from 2013 is captured and maintained uniformly across the public service. It will also safeguard against the potential loss of data from 2013 on Single Scheme members.
Help with SPS?
There are a number of different approaches that employers can take for help with their SPS requirements.
- Use online resources and tools provided by the Irish Government.
- Contact a specialist to streamline the production, checking and verification of all SPS requirements.
MakoData have a solution that is already in use by many RA’s across Ireland. For more information, please book a demo today and see the solution in action.
