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Local Government Superannuation Scheme (LGSS)

The LGSS applies to 100,776 pensionable staff employed by local authorities, health service executives and a number of other statutory bodies and 31,950 persons are in receipt of pensions under the Scheme (position as at 1 January 2006).

The LGSS is defined benefit in nature. Generally speaking, retirement benefits comprise a tax free lump sum and a pension. In the main, lump sum and pension accrue at the rate of three-eightieths and one-eightieth, respectively, of pensionable pay for each year of service subject to a maximum reckonable service of 40 years. This means that the maximum lump sum is one and one-half times’ pensionable pay while maximum pension is one-half of pensionable pay. In the case of employees who are fully insured (i.e. who pay Class A PRSI), the accrual rates for pension purposes are as follows:

  • for pensionable pay up to 3 1/3rd times the rate of social welfare old age contributory pension – 1/200th of pensionable pay for each year of service and
  • for pensionable pay in excess of 3 1/3rd times the rate of social welfare old age contributory pension – 1/80th of pensionable pay for each year of service.

LGSS is contributory on the part of employees. With effect from 1986, new entrants pay a contribution of 6.5% of pensionable pay. An adjustment to pensionable pay is made when calculating part of the contribution due by fully insured employees.

Death in service benefits, including, where applicable, pensions for the spouse and/or eligible children of a member, are also payable. Pensions payable under the LGSS are generally increased in line with pay increases for serving employees.

The LGSS is financed on a pay-as-you-go basis which means that benefits are not pre-funded but are paid as they arise from the employing authorities’ revenue.

An employee who is unclear about his or her entitlements, or is unhappy about any pensions decision made by a local authority, including a health service executive, should contact that authority or executive and request that the position be fully explained. If, following this explanation, the matter has not been settled to his or her satisfaction, he or she may avail of a formal internal review procedure. Should he or she still have a complaint or dispute following the formal internal review, he or she may, depending on the nature of the complaint or dispute, be entitled to refer the matter to the Pensions Ombudsman for determination. Details of the formal internal review process are available from the relevant local authority or health service executive. Information concerning the role and functions of the Pensions Ombudsman is available from the Office of the Pensions Ombudsman, 36 Upper Mount Street, Dublin 2 -–Telephone No. (01) 6471650 – or on the Pensions Ombudsman website.

Annual Requirements in relation to the LGSS

Under the Pensions Act, 1990, as amended, the Section is required to prepare an annual report in relation to the LGSS and circulate it to local authorities. Local authorities are obliged to inform the scheme members of the availability of the report and to give copies to the members on request. The latest Annual Report is available on this website under Publications & Documents.

Under the Pensions Act, 1990, as amended, the Section is responsible for preparing and updating explanatory leaflets in relation to the LGSS, for circulation to local authorities. Local authorities are obliged to give a copy of the appropriate leaflet to new pensionable employees and to serving employees on request. 

The Section develops, supports and participates in the training programme for local authority pensions administrators organised by the Institute of Public Administration and the annual series of pensions seminars organised in conjunction with the Local Government Management Services Board. Approximately 5 training courses and 5 regional pensions seminars are organised annually.

Departmental Superannuation

The Section is responsible for calculating and arranging payment of the superannuation entitlements of the Department’s staff. It also provides staff with estimates of entitlements on request, verifies previous service, determines professional added years entitlements and assesses applications to purchase notional service.

The Section also calculates pension increases for former Environmental Research Unit staff.

Pensions Board

The Pensions Board was established in 1990 to oversee the operation of the Pensions Act, 1990. The LGSS must comply with the provisions of the 1990 Act, and take account of any policy changes introduced by the Board.

The Section pays fees to the Pensions Board annually as required by the 1990 Act. These are based on the membership (serving staff and pensioners) of the LGSS.

Contact Information:

Email: superann@environ.ie