Early Retirement: Strands 1-3
Suspension of Early Retirement: Strands 1 - 3
- As a result of the 2009 Budget provision for education, the pilot Early Retirement Scheme for Teachers has been suspended with immediate effect until further notice.
- The scheme was
introduced in order to promote greater efficiency and effectiveness
within schools. The Department’s
Circular Letter 0102/2007 provided information to applicants who wished to
retire at the end of the school year 2007/08.
That circular also stated that, pending the completion of a review of
the scheme which was then ongoing, it had been decided that the pilot scheme would
be continued “to include teachers retiring at the end of the 2006/07, 2007/08 and 2008/09 school
years”.
- However, like other programmes under this Department’s remit, the continuance of the pilot scheme is subject to available resources and to changes in Government policy. While it has been under review, the reason for its suspension stems not as a result of that review but from current economic challenges.
Other retirement options
It should be noted that teachers have 2 other forms of retirement before normal pension age open to them – retirement under the 55/35 rule and cost-neutral early retirement.
- Under the 55/35 year rule a teacher, other than a new entrant appointed after 1 April 2004, who has reached the age of 55 years and has at least 35 years of actual pensionable service, may retire voluntarily. There is no actuarial reduction in benefits and credit for certain pre-service training is given in order to assist teachers to reach the 35-year threshold for retirement.
- Under cost-neutral early retirement, a teacher aged 50 years or over (55 years in the case of new entrants appointed after 1 April 2004) has the option of an immediate cost-neutral early retirement pension and lump sum on resignation. The cost-neutral early retirement benefits are actuarially reduced to take account of the early payment of the lump sum and the longer period over which pension would be paid.