It will cost the ESB approximately £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 (seven years of service). Worker would receive pre tax lump sum of £21,747 and pension, based on seven years service, at age 60
Age 35 (17 years of service) Pre tax lump sum of £52,816 plus pension based on 17 years of service at age 60.
Age 45 (27 years of service)
A pre tax 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 (37 years of 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.