Recognition of Substitute Service for Pension Purposes
Recognition of Substitute Service for Pension Purposes w.e.f. 1 January 2005
DES Circular 28/04 Paragraph 4(d) states:
(d) Superannuation Deductions for Substitute Teachers:
Superannuation deductions will commence for substitute teachers on 1 January, 2005. The only group from whom deductions will not be made are teachers who have retired on compulsory age grounds and are not new entrants as explained in Circular 10/04. In this context, it should be noted that teachers over 65 who undertake substitute work after 31st March 2004 will have superannuation deductions made if a break of more than 26 weeks occurs between periods of employment.
Superannuation deductions will be made from each salary payment. In general, substitute teachers will pay superannuation deductions as follows:
- 1.5% Spouses and Childrens Pension (pre-tax deduction from gross salary)
- 1.5% Superannuation (pre-tax deduction from gross salary)
- 3.5% Superannuation (pre-tax deduction from gross salary less twice the rate of Dept. of Social and Family Affairs Old Age Pension)
Substitute Service during school years 1991/'92 and '92/'93
Superannuation credit can only be claimed in respect of service given in the 1991/'92 and 1992/'93 school years where 92 days or more substitute service have been given.
Payment of contribution
A superannuation contribution payment will have to be made by the teacher.
Payment of this contribution can be made immediately on taking up duty in a permanent teaching post. Alternatively, arrangements can be made to have contributions deducted from salary over an agreed period.
Authorisation for the deduction of the appropriate amount from salary will be required at the time of application for credit. Substitute service given by teachers while on career break will not be reckoned for pension purposes.
Substitute service prior to 1 January 2005
On appointment to a permanent teaching post, a teacher can have previous service as a substitute credited for superannuation purposes on the following conditions:
- the scheme applies to substitute service given after 1 September 1993 (limited provision is made for substitute service given in the 1991/'92 and 1992/'93 school years);
- the teacher must pay a superannuation contribution; and
- each day of qualified substitute service will be calculated as a pro-rata fraction of a 365 day year.
Substitute Service from 1 September 1993
On appointment to a permanent position substitute teaching service given after 1 September 1993, may be credited on a pro-rata basis for superannuation purposes as follows:
- Option 1: All qualified substitute service of 92 days or more in any school year may be credited.
- Option 2: If less than 92 days qualified substitute service is given in any school year, substitute service of five days or more in any fortnightly pay period may be credited.
Superannuation Credit for Certain Service in Capitation National Schools
Agreed Reports 7/75 and 2/78 of the Conciliation Council
for Teachers record agreement on arrangements for the
reckoning for superannuation purposes of service given
by teachers as members of religious orders on the minimum
staffs of capitation schools (hereafter referred to
as "capitation teaching service"). Arising
from those Agreed Reports, and subject to the conditions
outlined therein, one-half of such teaching service
may be reckoned as pensionable service under the appropriate
Service given by teachers, either lay or religious,
in a supernumerary capacity in capitation schools (hereafter
referred to as "supernumerary teaching service")
is not recognised as pensionable service.
Two claims which have been processed under the terms of the PCW agreement on pay and conditions relate to service given by teachers in capitation schools. These claims seek:
- That capitation teaching service be recognised in
full for superannuation purposes - ie recognition
of the balance of such service which is not currently
- That supernumerary teaching service in capitation
schools be recognised in full for superannuation purposes.
Subject to the conditions below, all capitation teaching
service and supernumerary teaching service would be
recognised for pension purposes under the primary teachers'
- A deduction from the retirement lump sum of a superannuation
contribution equal to 5% of pensionable remuneration
will be made in respect of each year of capitation
or supernumerary teaching service after 1 July, 1968.
- Where a teacher is purchasing service under the Purchase Scheme 1991, s/he may cease paying the contributions and have the total paid offset against the contribution due under this arrangement. This would be done by reducing the deduction from the lump sum by the total paid under the Purchase Scheme, together with compound interest at the rate of 6% a year in respect of the period between ceasing to pay the contributions and his/her date of retirement.