It will cost the ESB about £100,000 per employee. This breaks down roughly as: £20,000 lump sum; £30,000 for pre retirement allowance to retirement at 60; £50,000 to fund retirement pension for employee on reaching 60;
Examples:
Assuming average ESB salary of £18,000 and employee starting work with the company at 18 years of age;
Age 25 with seven years service. Worker would receive pre tax lump sum of £21,747 and pension, based on seven years' service at age 60;
Age 35 with 17 years of service. Pre tax lump sum of £52,816 plus pension based on 17 years of service at age 60; Age 45 with 27 years' service. A pretax lump sum of £18,000 (or one year's salary), plus 40 per cent of salary for seven years. A pension based on 34 years' service would be paid at age 60;
Age 55 with 37 years service. A pre tax lump sum of £18,000 (or one year's salary), plus 50 per cent of salary until 60, when a pension would be paid based on normal full service;