Pension Related Deduction (PRD)

 

 

Pension Related Deduction (PRD) formally known as Pension Levy was introduced as part of the Financial Emergency Measures in the Public Interest Act 2009. The Department of Finance are responsible for the implementation of the Pension Related Deduction.

 

Changes for PRD as of 1st Jan 2019

Pension-related deduction (PRD) ceased at the end of 2018.

Additional superannuation contribution (ASC) has replaced PRD and will take effect as of 1st Jan 2019.

Please click here for information about ASC.

 

PRD Documentation Explained

*PLEASE NOTE:

Pension Contributions: Relate to your future entitlement to a benefit under a public service pension scheme which is managed by the Pensions Office. 

PRD (Pension Related deductions): Is a levy/statutory deduction introduced by the Dept of Finance which is managed by the Payroll Office.

PRD10 EMPLOYMENT DECLARATION FORM

The PRD10 form is a declaration of an individual’s status with regard to any public service pension scheme. It also is a declaration of an individual’s main and subsidiary employers where an individual has more than one public service employment at one time.

Please see tab named "PRD10 form explained" to help with any queries that arise when completing this form.

PRD60: PENSION-RELATED DEDUCTION END OF YEAR CERTIFICATE

The Pensions-Related Deduction End of Year Certificate (PRD60) is issued by the payroll office (the same time as the P60's are issued) and summarises the total Pensions-Related Deduction Amounts that employees paid via the NUI Galway payroll in the previous year.

Monthly paid staff (excluding casual employees) & retirees will access their PRD60's online. Please see further details on our website for P60's/PRD60's Online.

Casual Employees: Printed PRD60's detailing earnings for the previous tax year are posted to all NUIG casual employees (who are subject to this deduction) at the payslip addresses held on the Payroll system each February. If you have not received your PRD60 by the 20th of February you should contact the Payroll Office. Please contact Payroll to update your postal address if required.

Please ensure you take note of the following on the top of this Certificate as it's very important:- 
PRD60 Main Employment - This means NUI Galway was your main employer for the year this Certificate relates to. The Thresholds for PRD were allocated for your PRD deductions for your employment with NUIG.
PRD60 Subsidiary Employment - This means NUI Galway was not your main employer for the year this Certificate relates to. You were deducted for PRD at the highest rate of 10.5% on all your earnings at NUI Galway for the relevant year. This certificate should be given to your main employer so a recalculation can be done for your PRD. (See tab PRD deductions explained)

 

PRD12A EMPLOYMENT INTENTION DECLARATION -(STATEMENT OF POTENTIAL EMPLOYMENT)

This form is relevant only if you have been deducted P.R.D. (Pension related deductions) from your salary (please check your payslip) and one of the following applies to your situation:

Cessation of Employment at NUI Galway

If all 4 of the following points apply to you, you will be entitled to the full set of annual thresholds in calculating your pension related deductions (PRD) within the relevant tax year which will entitle you to a small refund of PRD that you have paid to date.

  1. You will have a future entitlement to a benefit under a public service pension scheme with NUI Galway or a previous public service employer.
  2. Your employment at NUI Galway has ceased or will cease.
  3. You are due no other payments for the remainder of the tax year from NUI Galway or any other Public Service Employer. (It is ok if you are due your last payment when completing this form)
  4. You do not intend to take up further public service employment (with NUI Galway or another Public Service Employer) for the remainder of the current year.

NOTE: If you are receiving a payment in December & NUI Galway is your main employer for PRD, you will have received the full set of annual thresholds and it is not necessary to complete this form.

Employee taking unpaid leave

If you are taking unpaid leave (career break/unpaid following maternity leave/etc.) and are not due a payment via payroll for the remainder of the year, you will be entitled to the full set of annual thresholds in calculating your pension related deductions (PRD) within the relevant tax year. You should complete this form before you receive your last salary for this year.

NOTE: If you are receiving a payment in December & NUI Galway is your main employer for PRD, you will have received the full set of annual thresholds and it is not necessary to complete this form.

Further Information:

Please ensure that you do not intend to take up further public service employment during the current year before completing the PRD12A form.  You may complete the form later in the year if you never took up further public service employment as we can refund the PRD to you after you have left NUI Galway.

Please note PRD refunds are taxable.

Please read the form carefully and ensure you understand it before completing and returning it to the Payroll Office.

PRD45: PENSION-RELATED DEDUCTION CERTIFICATE

When you receive a P45 cert from NUI Galway, we will also issue to you a PRD45 if you have been subject to PRD deductions. (You will see these deductions on your most recent payslip)

What do you need to do with the PRD45 document:-

  • If commencing in a new public service employment within the same year as your PRD45 earnings relate to, you must give this document along with your P45 to your new employer. 
  • If the PRD45 relates to a different tax year to when you are commencing in a new public service employment then it is not required to give this document to your new employer and you should retain it for your own records.
  • If commencing in a new employment that is not public service you need to retain this document for your records.

Deductions Explained

Pension Contributions: Relate to your future entitlement to a benefit under a public service pension scheme which is managed by the Pensions Office. 

PRD (Pension Related deductions): Is a levy/statutory deduction introduced by the Dept of Finance which is managed by the Payroll Office.

PENSION RELATED DEDUCTION (PRD) RATES

  Main Employer Pension Related Deduction Rates for 2017 & 2018
Annual Earnings Threshold Monthly Earnings Threshold Weekly Earnings Threshold %
 Up to € 28,750 Up to € 2,395.83 Up to € 552.88 0 %
Between € 28,750 & € 60,000 Between € 2,395.83 & € 5,000 Between € 552.88 & € 1,153.85 10 %
All Gross Pay over € 60,000 All Gross Pay over € 5,000 All Gross Pay over € 1,153.85 10.5%
 Subsidiary Employer Pension Related Deduction Rates
Annual Earnings Threshold Monthly Earnings Threshold Weekly Earnings Threshold %
All Earnings All Earnings All Earnings 10.5%
Main Employer Deduction Rates for Previous Years (2009 - 2016)        Pension Related Deduction Rates   

PRD CHANGES FOR 2017:

The Financial Emergency Measures in the Public Interest Bill 2015 provides for the following changes: 

• From 1st January 2017, the exemption threshold will increase from €26,083 to €28,750. 10% PRD will apply to earnings between €28,750 and €60,000, and 10.5% PRD will continue to apply to any earnings in excess of €60,000.

Important information: Staff / Casual Employees who have a pension entitlement with a Public Service Employer and has more than one public service employment at one time should read the following:-

 PRD10 Form: 

  • If an employee has more than one employer within the Public Service, then the Pension Related Deduction rates for the main employer can only be used by one employer. When completing the PRD10 form you must nominate an employer (where most of your earnings are with) as your main employer. And nominate the other employer (where your least earnings are with) as your subsidiary employer. You may have more than one subsidiary employer and all of these employments should be named on your PRD10 form Q.1. (D).
  • If your employment details change during the year and the details you entered on your previous PRD10 form has changed, please complete a new PRD10 form with the updated information.

PRD60 Cert (End of Year Cert):

  • At the end of the tax year you will receive your PRD60 Certificate (with your P60) from each of your public service employers. You should send a copy of the PRD60 certificates from your subsidiary public service employers (where your least earnings are with) to your main public service employer (where most of your earnings are with) for that year.  Your main employer must recalculate your pension related deductions for your total income from all your public service employments using the main employer deduction rates as above.  If there is a difference in what was originally deducted for PRD this must be corrected by your main employer.

See the following example: An employee with 2 employments in the Public Service: PRD Example