Calculating your pension and lump sum

Please select your Pension Scheme below:

 

Secondary, Community & Comprehensive Teachers Superannuation Scheme


Education & Training Board Teachers Superannuation Scheme


Single Public Service Pension Scheme

 

 

Secondary, Community & Comprehensive Teachers Superanuation Scheme

Calculating your Pension Benefits

The Secondary, Community and Comprehensive Teachers Superannuation Scheme is a “final salary defined benefit schemes”. You have guaranteed pension benefits determined by your salary on the day you retire, and the length of service you have earned or bought in your pension scheme. Once you know your final salary and your pensionable service, you can calculate your pension benefits. These pension benefits include a fortnightly pension for the rest of your life, a tax-free lump sum and, generally, a survivors’ pension for your spouse or civil partner and qualifying children in the event of your death.

The salary figure that is used to calculate your pension benefits is your salary on the date you retire. There is a 3-year ‘look-back’ for Post of Responsibility and other allowances which means that the allowance must be held for three full years prior to retirement in order to have the whole value of the allowance included for pension purposes, otherwise the pro-rata value if used. If you are a job-sharer, the salary used to calculate your pension benefits is your equivalent whole-time salary. A job-sharer does not have to go back to full-time work in their retirement year to preserve the value of their pension. Work for the State Examinations Commission, however, is not pensionable and hence does not count towards your pension benefits.

The value of your pension benefits is, however, affected by the type and number of PRSI contributions you have made over your working life prior to your retirement from teaching. There are two main classes of PRSI that teachers typically have in their PRSI records:

D1 rate:for a teacher continuously employed with no break in service from before 6th April 1995 and who is a member of the Secondary, Community and Comprehensive Teachers Superannuation Scheme either continuously from before or after that date.
A1 rate:for a teacher employed before 6th April 1995 but who was not in a public service pension scheme at that time, or a teacher employed on or after 6th April 1995, or who was interrupted their service after that date, irrespective of whether or not they are a member of a public service pension scheme.

There are also many teachers who have a mix of PRSI rates in their social insurance record. Such teachers may have been teaching for some time before they joined the Secondary, Community and Comprehensive Teachers Superannuation Scheme, for example, during their probationary year. Alternatively a teacher may have joined the profession before April 1995, subsequently left but re-joined at a later date after a break in service. A break of one day is sufficient to switch a teacher from Class D1 to Class A1 contributions.

All of the pension benefits for teachers who have always paid the D1 rate of PRSI come from the teachers’ pension schemes and they are not entitled to a State Contributory Pension when they reach 66 years of age. This is called an ‘unco-ordinated pension’.

Teachers who have generally paid the A1 rate of PRSI or who have some A1 PRSI contribution in their record are entitled to a State Contributory Pension, in whole or in part, when they reach state retirement age. That whole or part state pension is not in addition to their teachers’ pension. Their teachers’ pension is reduced by the approximate value of the state pension they are entitled to, so that when you add them together they come to the approximate overall value of the pension received by a similar teacher who has always paid PRSI at the D1 rate. This is called a ‘co-ordinated pension’. If such teachers retire before the state retirement age the DES will, on application, pay a Supplementary Pension in lieu of the State Pension reduction until they reach state retirement age providing that teacher is neither working in retirement nor entitled to Jobseekers Benefit. There is a specific age restriction on the payment of a supplementary pension if you retire on the Cost-Neutral Early Retirement Scheme (CNER) Scheme.

Pensions Modeller

The DES has very helpfully provided an online tool to enable members of the Pension Scheme to calculate a rough estimate of their future pension benefits. The estimate provided by the tool is, of course, only as accurate as the quality of the information input to it. However, the Pensions Modeller is very useful for delivering a broad estimate of future pension benefits, and also enables members to conduct ‘what-if’ analyses by using different retirement dates or salary details. The on-line Pensions Modeller can be accessed here.

 

 

Education & Training Board Teachers Superannuation Scheme

Calculating your Pension Benefits

The ETB Teachers Superannuation Scheme is a “final salary defined benefit schemes”. You have guaranteed pension benefits determined by your salary on the day you retire, and the length of service you have earned or bought in your pension scheme. Once you know your final salary and your pensionable service, you can calculate your pension benefits. These pension benefits include a fortnightly pension for the rest of your life, a tax-free lump sum and, generally, a survivors’ pension for your spouse or civil partner and qualifying children in the event of your death.


The salary figure that is used to calculate your pension benefits is your salary on the date you retire. There is a 3-year ‘look-back’ for Post of Responsibility and other allowances which means that the allowance must be held for three full years prior to retirement in order to have the whole value of the allowance included for pension purposes, otherwise the pro-rata value if used. If you are a job-sharer, the salary used to calculate your pension benefits is your equivalent whole-time salary. A job-sharer does not have to go back to full-time work in their retirement year to preserve the value of their pension. Work for the State Examinations Commission, however, is not pensionable and hence does not count towards your pension benefits.
The value of your pension benefits is, however, affected by the type and number of PRSI contributions you have made over your working life prior to your retirement from teaching. There are two main classes of PRSI that teachers typically have in their PRSI records:

D1 rate:for a teacher continuously employed with no break in service from before 6th April 1995 and who is a member of ETB Teachers Superannuation Scheme either continuously from before or after that date.
A1 rate:for a teacher employed before 6th April 1995 but who was not in a public service pension scheme at that time, or a teacher employed on or after 6th April 1995, or who was interrupted their service after that date, irrespective of whether or not they are a member of a public service pension scheme.


There are also many teachers who have a mix of PRSI rates in their social insurance record. Such teachers may have been teaching for some time before they joined the ETB Teachers Superannuation Scheme, for example, during their probationary year. Alternatively a teacher may have joined the profession before April 1995, subsequently left but re-joined at a later date after a break in service. A break of one day is sufficient to switch a teacher from Class D1 to Class A1 contributions.

All of the pension benefits for teachers who have always paid the D1 rate of PRSI come from the teachers’ pension schemes and they are not entitled to a State Contributory Pension when they reach 66 years of age. This is called an ‘unco-ordinated pension’.

Teachers who have generally paid the A1 rate of PRSI or who have some A1 PRSI contribution in their record are entitled to a State Contributory Pension, in whole or in part, when they reach state retirement age. That whole or part state pension is not in addition to their teachers’ pension. Their teachers’ pension is reduced by the approximate value of the state pension they are entitled to, so that when you add them together they come to the approximate overall value of the pension received by a similar teacher who has always paid PRSI at the D1 rate. This is called a ‘co-ordinated pension’. If such teachers retire before the state retirement age the DES will, on application, pay a Supplementary Pension in lieu of the State Pension reduction until they reach state retirement age providing that teacher is neither working in retirement nor entitled to Jobseekers Benefit. There is a specific age restriction on the payment of a supplementary pension if you retire on the Cost-Neutral Early Retirement Scheme (CNER) Scheme.

Pensions Modeller

The DES has very helpfully provided an online tool to enable members of both the Secondary, Community & Comprehensive Teachers and ETB Teachers Pension Schemes to calculate a rough estimate of their future pension benefits. The terms and benefits available under both schemes are sufficiently similar to enable the tool to be used by members of both schemes.

The estimate provided by the tool is, of course, only as accurate as the quality of the information input to it. However, the Pensions Modeller is very useful for delivering a broad estimate of future pension benefits, and also enables members to conduct ‘what-if’ analyses by using different retirement dates or salary details. The on-line Pensions Modeller can be accessed here.

 

 

Single Public Service Pension Scheme

Calculating your Pension Benefits


The Single Public Service Pension Scheme is a defined benefit scheme which applies across the public service. Members of the Single Public Service Pension Scheme make two separate contributions to the Pension Scheme every time they receive their salary. These regular payments are called ‘referable amounts’ with one going to build their retirement pension and the other to their retirement lump sum. Every year the value of accrued referable amounts held in the Scheme is uprated by the Consumer Price Index (CPI). Over the course of a teacher’s career these amounts build up and fund the defined pension benefits that the Scheme delivers on retirement. These benefits are co-ordinated with the State Contributory Pension and which is paid in addition to the retirement benefits delivered by your Pension Scheme. The following chart describes how benefits are built up in the Pension Scheme:

 

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Scheme Estimator Tool

The Single Public Service Pension Scheme has provided an online tool to enable members of the Pension Scheme to calculate a rough estimate of their future pension benefits. The estimate provided by the tool is, of course, only as accurate as the quality of the information input to it. However, the Estimator Tool is useful for delivering a broad estimate of future pension benefits. The on-line Estimator Tool can be accessed here.