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May 2017

Thinking of retirement in 2017?

Important considerations when picking a retirement date

The following changes were made to salary since last September:

  • 1 September 2016: €796 restored on the scale in respect of the first half of restoration of Supervision and Substitution money;
  • 1 April 2017: Pay restoration of €1,000 on all points of the scale

On 1 September 2017, €796 will be restored on the salary scale in respect of the second half of restoration of Supervision and Substitution money.


The Haddington Road Agreement (HRA) cut to salaries over €65,000 still applies until 1 January 2018. Retiring teachers are protected from this by virtue of the “Grace Period”.

The Grace period also protect the pre-2013 value of the supervision and substitution payment which was €1769.

However, due to the increases outlined above, in some circumstances, a teacher’s final salary for pension calculation may be higher on 1 September 2017 than it would be if retiring on 31 August 2017.


Below is a simple outline of the teachers who stand to benefit by being in service on 1 September 2017 and those who will not. This is INTO advice based on information available from the DES at present:

Teachers who will benefit from being in service on 1 September 2017.

  1. Teachers earning less than €65,000 at present.
  2. Teachers who opted out of the Supervision and Substitution scheme when it was paid as an allowance (prior to 2013)


Teachers who will not benefit from being in service on 1 September 2017 (ie retire on 31 August).

  1. Teachers earning in excess of €66,850 at present. For this group of members, retirement from 31 August which would be their normal retirement date, and on that date they will still be able to avail of full benefits for pension/lump sum calculation protected by the Grace Period.


Teachers who should seek advice on retirement date.

  1. Teachers earning between €65,000 and €66,850 at present – benefit may be minimal if you stay until 1 September 2017.
  2. Teachers who have received a new (eg principal) allowance in the last 3 years – due to impact of the pro rata rate of allowance applied to retiring salary.


Can I wait until 2018?

For those members who have decided not to retire in 2017, please note, the full restoration of the HRA pay cuts will be effective from 1 January 2018 and the Grace Period will also be in force until April 2019. This means the earliest optimum date for retirement for all members with earnings over €65,000, would most likely be from January 2018, i.e. after the Christmas break.  


Please note the INTO is not licenced to give financial advice. Pension figures supplied or information given are estimates/opinion only and should not be considered a substitute for professional financial advice. The DES will supply the final figures for Pension and Lump Sum.


Date: Friday, 26 May 17