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Professional Added Years (PAY)

Published on Feb. 13, 2023

Last update on May 30, 2023

Table of contents

Introduction

Professional Added Years (PAY) schemes apply to certain members of pre-existing public service pension schemes recruited by way of open competition to professional, technical or specialist permanent posts in the civil/public service. PAY may be awarded at retirement to those individuals, where the eligibility conditions attached to the recruitment competition for the relevant professional, specialist or technical post, were such that they would prevent the individual from obtaining maximum reckonable service (40 years’ service in a standard accrual pension scheme) by a specified retirement age (usually age 65).

For example, a minimum entry age of over 25, or specified minimum qualifications and/or experience which would preclude appointment by age 25. There are limits on the gross award which may be granted. The gross award may also be reduced (“abated”) in certain circumstances, for example, to take account of periods spent in pensionable employment prior to appointment to the added years post.

There are different PAY schemes operating in the civil service and other parts of the public service, as well as certain state-sponsored bodies, universities and the health and local government sectors.

PAY do not apply to members of the Single Public Service Pension Scheme.

Important Note: as a gross PAY award can be substantially reduced once abatement is applied (and at times no award remains), individuals should not make decisions affecting their pension based on a gross PAY award.

Civil service PAY schemes

There are three schemes for the award of Professional Added Years operating in the civil service:

Revised Old Scheme

Circular 12/1997 amended an original 1985 scheme to create the ‘Revised Old Scheme’, which applies to persons appointed to established professional, technical or specialist posts who were serving between 1 January 1993 and 31 March 1997. Relevant staff serving between 1 January 1993 and 31 March 1997 may opt for the Revised Old Scheme or the New Scheme.

New Scheme

The ‘New Scheme’ was introduced under Circular 12/1997 and applies to persons appointed to established professional, technical or specialist posts on or after 1 April 1997, or to persons serving in a professional, technical or specialist post between 1 January 1993 and 31 March 1997 who opt to be assessed under the terms of the New Scheme.

The Revised Old Scheme and the New Scheme share the same core rules, with the main difference being the calculation methodology.

New Entrant Scheme

The ‘New Entrant Scheme’ was introduced under Circular 8/2005 and applies to persons appointed to established professional, technical or specialist posts from a competition advertised on or after 1 April 2005, who are New Entrants in accordance with the Public Service Superannuation (Miscellaneous Provisions) Act 2004.

Eligibility

An award of PAY may be made where a permanent, pensionable employee was recruited to a professional, technical or specialist post by way of open competition and:

(i) (a) minimum professional, technical or specialist qualifications and/or a minimum number of years essential experience were required for entry; or

(b) the minimum entry age specified in the competition was over 25;

and

(ii) by reason of those entry requirements it is not possible for the individual to secure 40 years' service by the age of 65 years (or the age specified in the PAY scheme rules).

Gross PAY award

The maximum gross PAY award available is 10 years under the Revised Old Scheme and the New Scheme, and 5 years under the New Entrant Scheme. A PAY award may also be limited based on an individual’s actual service, and is subject to the individual’s total reckonable service not exceeding 40 years. Limitations to the gross award will be determined based on the rules of the PAY scheme applicable to the member, and based on individual career histories.

Net PAY award (abatement of gross award)

A gross PAY award may be abated at retirement to give a net award, which is the actual additional service credited to the member for the purposes of calculating their pension benefits. Abatement (or reduction) of a gross award may occur for a number of reasons including for example, where the member has previous pensionable service or holds retained benefit from an earlier employment.

Reductions to the net award can also occur where the individual has availed of a career break or unpaid leave, or where an individual resigns prior to age 60.

An award of PAY can only be formally made at retirement. As a net award can only be confirmed at retirement, and as a gross award may be partially or fully abated, members should not make financial or pension-related decisions based on a potential PAY award.

Public service PAY schemes

The information set out above relates to the PAY schemes operating in respect of pre-existing civil service pension schemes only. The rules of the PAY schemes operating in respect of members of other pre-existing public service pension schemes govern the eligibility criteria, maximum awards etc. under those schemes.

Process for confirmation of PAY award

Civil service departments/offices, and state-sponsored bodies who operate pre-existing public service pension schemes which are based on model scheme terms, where those scheme rules reference Professional Added Years that may be granted subject to conditions set by the Minister for Public Expenditure, NDP Delivery and Reform, should follow the steps set out in the relevant checklists:

Civil service PAY checklist

State-Sponsored Bodies PAY checklist

Interaction with Purchase of Notional Service Scheme

In cases where it transpires that, after the grant of PAY, an individual has purchased notional service which would bring them over the maximum permitted reckonable service, a refund of excess purchase contributions paid may be granted. In the case that some but not all of the purchased service is in excess of the maximum, a partial refund will be granted. Where all of the purchased service is in excess, a full refund may be granted.

Further information on the Purchase of Notional Service Scheme is available here.

Supporting information

Further information on the rules of the civil service PAY schemes is available in the circulars and letters listed below. Bodies with queries in relation to PAY may contact the Pension Policy Unit of the Department of Public Expenditure, NDP Delivery and Reform.

Scheme members who wish to enquire about their eligibility for PAY should contact their HR or pension administrator.

Circulars

  • Circular 11/1985: Ad hoc arbitration finding on a claim for the award of added years to certain civil service grades
  • Circular 12/1997: Revised schemes for the award of professional technical and specialist added years to certain civil servants
  • Circular 08/2005: Public Service Pension Reform: New scheme for the award of professional, technical and specialist added years to certain new entrant staff of the civil and public service

LPOs