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

The INTO Pension Calculator has been developed specifically for INTO members to assist the calculation of an estimated pension and Lump Sum. Figures supplied on the calculator are for illustrative purposes only. Estimates provided should not be considered a substitute for professional financial advice. The DES will supply the final figures for Pension and Lump Sum.

Important note: the INTO calculator provided is not designed to calculate cost neutral early retirement (CNER) estimates. Access the DES Pensions Calculator.

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.