Where a nurse/midwife is entitled to the payment of a social welfare benefit, the Supplementary Pension is paid in circumstances where the combined pensions (i.e. occupational and social welfare benefit) are less than the pension the person would receive if the occupational pension was calculated on a non-coordinated basis.

Where a nurse/midwife is not entitled to the payment of a social  welfare  benefit, the  Supplementary  Pension  will generally be equal to the difference between Uncoordinated Pension (Class D PRSI) and Coordinated Pension (Class A).  It is payable until such time as s/he becomes eligible for payment of the Contributory State Pension.  

Example: Pension Calculation based on Class D and Class A PRSI contributions

• Class D PRSI Contributor: A staff nurse retires at age 62 with 40 years’ service on pensionable pay of €50,000 (the superannuation scheme to which she contributes provides for minimum retirement age of 60).  As a Class D PRSI Contributor, she has no entitlement to payment of the Contributory State Pension at age 66.
•  
• The method of pension calculation for Class D PRSI Contributors is as follows:
   
  • ¹/₈₀^th of pensionable remuneration per year of reckonable service, subject to a maximum of 40 years. 
     

• The staff nurse’s annual pension is calculated as follows: 
   

Annual Pension:  €50,000 x 40 ÷ 80 = €25,000
 

• Class A PRSI Contributor:  A staff nurse retires at age 62 with 40 years’ service on pensionable pay of €50,000 (the superannuation scheme to which she contributes provides for minimum retirement age of 60).  As a Class A PRSI Contributor, she has an entitlement to payment of the Contributory State Pension at age 66. 

• The method of pension calculation for Class A PRSI Contributors is as follows:
  • ¹/₂₀₀^th x pensionable remuneration up  to €41,448.31 (3¹/₃ times  the  current Contributory State Pension) x service, subject  to a maximum of 40 years, plus ¹/₈₀^th of  balance  in  excess  of €41,448.31  x  service, subject  to  a  maximum of  40 years.

• The staff nurse’s annual Pension is calculated as follows:
   
  • €41,448.31 x 40 ÷ 200 = €8,289.66 +
    € 8,551.69  x 40 ÷ 80  = €4,275.84
  • Annual Pension = €8,289.66 + €4,275.84 = €12,566
     
• Since the staff nurse will not be entitled to payment of the Contributory State pension until age 66, she may be entitled to a supplementary pension.  In this case, the staff nurse is not employed and does not qualify for Jobseekers Benefit or any other social welfare benefit.  She is, therefore, entitled to a supplementary pension of €12,434 (the amount equal to the difference between Uncoordinated Pension and Coordinated Pension).
   
• Combined Pension:  €12,566 + €12,434 = €25,000
   

• The supplementary pension will cease when the staff nurse becomes entitled to payment of the Contributory State Pension.