CALCULATION the compound interest rates which now apply In the case of ETBs and Institutes, are: Up to 13 November 2000 - Where the period of service (in respect of which the repayment or payment is made) was before the 1st day of January 1984 - 7% per annum. Where the period of service (in respect of which the repayment or payment is made) was on or after the 1st day of January 1984 - 6% per annum. From 14 November 2000 onwards - 4% per From 1 December 2014 onwards 3.5%per annum Note that where a person gave service both before and after 1 January 1984, two rates of compound interest would be applicable up to and including 13 November 2000, ie 7% on service prior to 1 January 1984 + 6% on service from 1 January 1984. An example is provided in the Appendix to this Circular. CIRCULATION 9. This Circular letter should be brought to the notice of all employees. Anne Killian Principal Officer Pensions Unit 24 April 2015 Circular 0028/2015 Appendix SCENARIO A person resigned from the ETB on 1 June 1969 and received a marriage gratuity of £1,087.43 (€1,380.75). The person is reappointed to the public service subsequently. That person decided to reckon their previous service for superannuation purposes and will be required to repay the marriage gratuity in doing so. The repayment may be made in one lump sum when the decision to repay is made, in one lump sum when that person retires from the public service or on an instalment basis.
CALCULATION In the case of ETBs and Institutes, the compound interest rates which now apply are: Up to 13 November 2000 - Where the period of service (in respect of which the repayment or payment is made) was before the 1st day of January 1984 - 7% per annum. Where the period of service (in respect of which the repayment or payment is made) was on or after the 1st day of January 1984 - 6% per annum. From 14 November 2000 onwards - 4% per From 1 December 2014 onwards 3.5%per annum Note that where a person gave service both before and after 1 January 1984, two rates of compound interest would be applicable up to and including 13 November 2000, ie 7% on service prior to 1 January 1984 + 6% on service from 1 January 1984. An example is provided in the Appendix to this Circular. CIRCULATION 9. This Circular letter should be brought to the notice of all employees. Anne Killian Principal Officer Pensions Unit 24 April 2015 Circular 0028/2015 Appendix SCENARIO A person resigned from the ETB on 1 June 1969 and received a marriage gratuity of £1,087.43 (€1,380.75). The person is reappointed to the public service subsequently. That person decided to reckon their previous service for superannuation purposes and will be required to repay the marriage gratuity in doing so. The repayment may be made in one lump sum when the decision to repay is made, in one lump sum when that person retires from the public service or on an instalment basis.
Circular-0028-2015-Revised-rate-of-compound-interest-for-use-in-the-calculation-of-refunds-to-the-exchequer.docx