On retirement you will be entitled to a pension and lump sum, provided you have a minimum of 2 years actual pensionable service. Pension and lump sum payments are determined by:

  • Total pensionable service (based on completed years and days of service subject to a maximum of 40 years), and
  • Pensionable remuneration on the last day of service

How do I calculate my pension and lump sum?
In the case of a teacher or lecturer paying D Rate PRSI, the pension is 1/80th of a teacher’s pensionable remuneration for each year of pensionable service. This is subject to a maximum benefit of ½ of pensionable remuneration (pensionable remuneration is final salary).

The lump sum is 3/80ths of gross pensionable remuneration for each year of pensionable service but subject to a maximum of 120/80ths. This payment is currently tax free up to €200,000.

Summary of retirement Entitlements

1/80th of Final Pensionable Salary for each year of Pensionable Service (maximum 40/80ths).

Lump sum
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.

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 Options
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.

A teacher may also apply to retire early on a cost neutral basis. Full information on this option is available from the employer.

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 available from Cormarket Financial Services.

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