A service pension is an occupational pension – that is, there are employers who pay a pension to their employees when they retire, which pension would have been part of the employment package as well as pensions paid by foreign employers including the UK forces.
What is a Service Pension?
The Government Service Pension
The government service pension is also known as the Treasury Pension. The Treasury Pension does not form part of the contributory retirement pension as it is not a social benefit.
Who is entitled to a Service Pension?
The below are eligible to receive a treasury pension
- All government employees who started service with government before 15th January 1979 and whose service with the government was continuous.
- Police, AFM personnel, Correctional Facilities officials and members of the Civil Protection;
- Members of Parliament,
- Members of the Judiciary and the Attorney General.
The 1979 reforms abolished private occupational pensions rendering the social security contributory pension as the sole pension income entitlement, excluding the above.
The Flat Rate
For those in receipt of a Service Pension, the flat rate is issued by the Department of Social Security and flat rate depends upon :
- The status on the individual
(married and spouse is not in receipt of a pension / separated maintaining wife / single / single and spouse in receipt of a pension in his/her own name / separated not maintaining wife - The contribution average
Service Pension Abatements
The below table illustrates yearly service pension abatements as announced in various budgets:
| 2008 | Lm 200.06 - Euro 466.01 |
| 2009 | Euro 200 |
| 2010 | Nil abatement |
| 2011 | Euro 200 |
| 2012 | Euro 200 |
| 2013 | Euro 200 |
| 2014 | Euro 200 |
| 2015 | Euro 200 |
| 2016 | Euro 200 |
| 2017 | Euro 200 |
| 2018 | Euro 200 |
| 2019 | Euro 200 |
| 2020 | Euro 200 |
The total amount ignored for assessment purposes for pensioners in receipt of a service pension stands at €2,666 (year 2020).
For 2020, service pensioners had another €200 exempted.
Affect of Service Pension Abatements on the Contributory Pension
A person receiving a service pension, like any other pensioner, has his/her contributory pension rate re-assessed yearly, and in case of service pension pensioners, the original service pension amount considered decreases by the service pension abatements indicated in table above.
The total amount ignored for assessment purposes for pensioners in receipt of a service pension stands at €2,666 (year 2020).
For 2020, service pensioners had another €200 exempted.
Budget Measure 2020 - 75% to be ignored
While, up to year 2020, the exempted sum has now risen to €2,666, for those service pensioners aged 72 years and over, their commuted service pension will be decreased by 75%, in that 75% will ignored and only 25% will be considered. Up to 2018, 50% was ignored.
Download our Service Pension Calculator for free, ask about your original amount of service pension, and check how much commuted service pension is being considered.