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Calculation of Pension

Calculation of Pension and Lump Sum

This page is applicable only to teachers in service prior 6 April 1995 i.e. Class D PRSI. All teachers who started teaching after this date, or who resigned their posts and subsequently returned to teaching on Class A PRSI, should contact INTO Head Office for their information. 

See pension calculators below.

Pension and lump sum are calculated on the basis of 'retiring salary'.

'Retiring salary' means, (in relation to a teacher), the sum of:

  • the annual rate of scale salary on the last day of pensionable service; and
  • the annual rate of any allowance payable on the last day of pensionable service, if:
    • the teacher dies in service more than three years before her/his compulsory retirement date, or
    • the teacher retires on grounds of disability before the earliest date at which s/he would be eligible for pension on voluntary retiral, or
    • the teacher has held the allowance for the last three years of pensionable service, and during that period there has not been an increase or decrease in the allowance payable to her/him due to a change in posts, or a change in the grading of a post, or the gain or loss of an allowance.
  • in the case of an allowance to which the provisions of the second clause above do not apply, an amount calculated by dividing by 1095 the annual rate of that allowance and multiplying the result by the number of days on which the teacher held the allowance during the last three years of pensionable service.

Compulsory and Voluntary Retirement

Pension is calculated at the rate of one eightieth of retiring salary for each year of pensionable service at the date of retirement subject to a maximum of 40 years. For example, a teacher on a 'retiring salary' of €60,000 with 40 years' contributions to the scheme will receive an annual pension of €30,000 (i.e. 1/80th of €60,000 x 40).

A teacher on the same salary with 35 years' pensionable service will receive an annual pension of €26,250 (i.e. 1/80th of €60,000 x 35).

Pensions are deemed to be income and as such are subject to income tax.

Retired teachers' pensions increase in line with salary increases awarded to serving teachers.

Lump sum is calculated at the rate of three eightieths of retiring salary for each year of pensionable service at the date of retirement subject to a maximum of 40 years. For example a teacher on a retiring salary of €60,000 with 40 years' or more contributions to the scheme will receive a lump sum of €90,000 (i.e. 3/80ths of €60,000 x 40).

A teacher on the same salary with 35 years' pensionable service will receive a lump sum of €78,750 (i.e. 3/80ths of €60,000 x 35).

The lump sum payable on retirement is not subject to income tax.

Pension Calculator for Retirements in 2017

This calculator has been developed by INTO specifically for members who plan to retire between 1st January and 31 December 2017, whose service began before April 1995 and did not break their service in any way other than by an approved leave of absence such as Career Break etc.

This calculator includes the Public Service Pension Reduction (PSPR) which, following the Lansdowne Road Agreement (LRA), now applies only to the category of retiree whose gross pension exceeds €39,000. Access to this calculator is available via the Members Area.

 

NB: Use either a salary slip up to June 2013 for this calculator or exclude the Haddington Road Agreement deductions on a current payslip.

It is for illustrative purposes only. Important note: this calculator is not designed to calculate cost neutral early retirement (CNER) estimates.

How to use the calculator

To calculate your gross pension and lump sum, please insert the following two pieces of information to the calculator, under the relevant section:

  1. Your fortnightly total gross pay which is found on the left-hand side of your payslip.      
  2. Your total number of years service, including months/days of a partial year, up to the chosen date of retirement.

It is understood that the Supervision Allowance will be included for the duration of HRA/LRA period to the 1 April 2019 for teachers who had, prior to July 2013, been signed up to include this Allowance as pensionable salary.  

 

Last updated: 25 May 2017