Cost Neutral Early Retirement Scheme

This facility allows members of the scheme to retire from age 50 (or age 55 in the case of new entrants) with actuarially reduced superannuation benefits. This facility will be made available to serving staff and the option will be extended to staff who resigned with an entitlement to preserved superannuation benefits as and from 1 April 2004.

The benefits payable to a scheme member who opt to retire under this scheme at age 58 are illustrated in the below example. [The scheme member is this example is an officer who is an existing entrant and pays D rate PRSI contributions i.e. who will receive a non coordinated award].   

EXAMPLE: Retirement at age 58

A person to whom a non-coordinated pension is payable, with a preservation age of 60, retires on his/her birthday.

Final Annual Salary:    €50,000             Age: 58                        Reckonable Service:  40 years

Superannuation Benefits


 If opting to preserve benefits  If availing of cost neutral early retirement

 Due at age 60 (i.e. in 2 years’ time)  Due now
Lump sum:  €75,000  €72,075 (applying reduction factor of 96.1%)
Annual pension:  €25,000  €22,525 (applying reduction factor of 90.1%)

Calculation of preserved Lump Sum: 3/80 x €50,000 x 40 = €75,000

Calculation of preserved Pension: 1/80 x €50,000 x 40 = €25,000

Further examples of the benefits payable to staff members who opt to retire under this scheme are available in the appendices of Circular Letter Pen 05/05.

To view all the provisions of this scheme please refer to: Circular Letter Pen 05/05 - Cost-Neutral Early Retirement.

You should note that staff members must apply in writing to retire under the Cost Neutral Early Retirement scheme, as sepcified in paragraph 13 of the circular letter, applications will be considered in light of business needs. 

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