Issues
Information
The Department has published a booklet, available in your school, entitled “Your Questions Answered”. Teachers in vocational schools should refer to the Vocational Teachers’ Superannuation Scheme booklet and teachers in C&C schools should refer to “the Secondary Teachers’ Superannuation Scheme booklet.
A similar booklet for Institutes of Technology is in production by the Department of Education & Science.
Tax Relief
Full tax relief is automatically granted and it is not necessary for staff to claim income tax relief when completing income tax forms.
Retirement Entitlements
Pension
1/80th of Final Pensionable Salary for each year of Pensionable Service (maximum 40/80ths).
Gratuity
3/80ths of Final Pensionable Salary for each year of Pensionable Service (maximum 120/80ths).
Death in Service
Spouse's Pension - 50% of Member's expected pension at normal retirement date.
Children's Pension
33 1/3% of Spouse's Pension (maximum 3 children reckonable).
Lump Sum
3/80ths of Pensionable Salary at date of death (maximum 1 x salary; maximum 1.5 x salary).
Death in Retirement
Spouse's Pension - 50% of the Pension the members is receiving at the time of their death.
Children's Pension
33 1/3% of Spouse's Pension (maximum 3 children reckonable).
Pensionable Service
Several types of service are reckonable for purposes of pension.
(a) Pensionable Service with any Local Authority
(b) Pensionable Service as a National, Secondary, Vocational or Community/Comprehensive teacher
(c) Subject to certain limits, temporary service including service as a
teacher, temporary or part-time.
Contributions
The rate of contributions is 5% of annual salary and allowances. All new staff are required to participate in the Spouses' and Children's Pension scheme and contribute an additional 1 1/2% of salaries and allowances.
Early Retirement
A teacher who has reached the age of 55 and has 35 years pensionable service may retire on pension. Two years will be credited for a 4 year training period, one year for a 3 year training period, to assist a teacher reaching the 35 year threshold. There is no provision for early retirement at 3rd level.
A teacher may retire because of ill-health. A Disability Pension is payable to a teacher who fulfils minimum service requirements and whose employer is satisfied that due to infirmity of body and mind the teacher is not capable of performing his/her duties and the infirmity is likely to be permanent. Actual pensionable service may be increased by added years, (maximum of 6 2/3 years), in calculating pension and lump sum.
Spouses' and Childrens' Pensions Scheme
If you should die after retirement on pension, your widow/widower is entitled to half the pension you were receiving and a survivors pension provided you contributed the additional 1 1/2% of salary.
Pension Increases
Retired staff on pension receive an increase in pension with effect from the date on which increases are paid to staff and in line with the increase awarded to staff. If you expect to retire i
n the near future,
you should now apply in writing to your VEC, or your College, or the Department of Education if in a C & C school for a statement of benefits due to you on the date of retirement. If you act now you may avoid delay in payment of gratuity and pension allowance.
Your gratuity is not liable for income tax but teachers who opted into the Spouse’s and Children’s scheme will be liable for a reduction of 1% of retiring salary for each year’s reckonable service for which no contributions have been made.
Additional Voluntary Contributions (AVCs)
Members who will not complete full service at retirement because they: started teaching/lecturing late, took a career break, job shared, are retiring early, availed of a marriage gratuity and as a result will qualify for reduced pension and gratuity may, subject to Revenue maximum benefits, make contributions to the TUI AVC Plan in order to enhance their Pension and Gratuity Benefits at retirement.
Last Minute AVCs - Members, close to retirement, who will not complete full service at retirement, again as a result of any of the above circumstances, and will only qualify for reduced pension and gratuity may, subject to Revenue maximum benefits, make a payment to the Trustees of the AVC Plan before they retire equal to the shortfall in their gratuity and obtain full tax relief on this contribution. If the shortfall is considerable, the tax relief may be spread over the previous 10 years.
Full details may be obtained from Marsh Financial Services prior to retirement @ Freephone 1800-781781.
Part-Time Service
Certain part-time service has been reckonable for pension purposes since 1st September 1996. The terms of this scheme for second level teachers are set out in Circular Letters.
The circular letter for Institutes of Technology is still awaited.