Increasing your pension pot and financial planning

The following are some ways in which you may be able to increase your pension pot. See the sections below for further information on each of these options.

If you are in the pre-2013 teacher pension schemes you can check if you are eligible to purchase notional service.

If you are in the post 2013 Single Public Service Pension Scheme, you can look at buying additional referred amounts into your pension.

You could also invest in a private pension product such as an AVCs to give you additional benefits in retirement.

If you worked in another area of the public service in Ireland you can seek to transfer your pensionable service into your teaching pension.

If you worked outside of the public service in Ireland or abroad for any length of time you should see if you have accrued any pension entitlement from this work and check when and how you can claim this.

If you worked in a private school, an EU state, another country outside of the EU or have relevant non teaching experience you may be able to claim incremental credit for that service.

If you worked in the UK, you may be able to keep paying into your UK state pension and claim this in addition to your other pension entitlements.

If you took unpaid leave such as statutory unpaid maternity leave or parental leave and you pay Class A PRSI you should make sure that you claim credited PRSI for this time.  This will increase your state pension contributory.

If you engaged in substitute work in the 1980’s or 1990’s that is not already on your service record you can claim this substitute service for pension purposes.

If you are in the pre-2013 teacher pension schemes you can check if you are eligible to purchase notional service. Notional Service is not available to members of the Single Public Service Pension who can look at purchasing additional referred amounts into their pensions instead.

Where you don’t have the potential to reach 40 years of service by the normal retirement age for your teacher pension scheme (60 for the old entrant, 65 for the new entrant scheme) you can apply to the Department of Education for a quotation for Notional Service.

Notional Service is additional years and days of pension service that will be treated as actual service in calculating pension and lump sum entitlements.

The maximum amount the Department of Education will quote you for is 5 years or less if there is a shorter shortfall at your normal retirement age.

If, between the service you have already completed and what you can do, you might achieve 40 years of service, they will not quote you for notional service.

Each year of notional service purchased increases pension by 1/80 and your lump sum by 3/80 of final salary.

It can be expensive as you will be covering the cost of the employer and employee contributions for this pension purchase.

To request a quote, you complete the NSQ1 form and submit it to the Department of Education.

Application forms for a quotation for notional service are available on the Department of Education webpages here.

Once you receive your quotation you can decide whether or not you wish to go ahead with this purchase.

The additional service purchased is treated as actual service in calculating pension and lump sum entitlements.

Notional Service is not included in counting the number of years of service needed for members of the Old Entrant Pension Scheme seeking to retire early from age 55 onwards under Voluntary Early Retirement.

Members of the post 2013 Single Public Service Pension Scheme can apply to purchase additional referred amounts into their pension can request a quote by completing the form SPS 5 and returning this to singlepensionscheme@education.gov.ie

A purchase of additional referred amounts can only be done once annually.

The government calculator to give you an indication of the cost of this is available here.

You should select “Standard Scheme” as your Pension Scheme.

Here is an example –

Circular 0015/2019 – Purchase and Transfer of Retirement Benefits under the Single Public Service Pension Scheme

You must have at least 2 years service in this scheme to apply and have the potential to get to at least 9 years of service in this scheme before your retirement.

There is a limit of one purchase annually and it is only by lump sum payment. There is also a limit on how much additional benefit you can purchase to ensure that revenue rules are complied with, that, on retirement, your expected pension will not exceed 50% of your final full-time salary and that the lump sum will not exceed 150% of your final salary.

You can also look at enhancing your pension through private products such as Additional Voluntary Contributions (AVCs) through providers such as Cornmarket. You can contact Cornmarket on (01) 408 4007 for further information.

An AVC is an investment of money, the value of investments can rise and fall with the markets.

There are tax savings where money is invested via an AVC. Follow the link for more details –

Additional Voluntary Contributions | What is an AVC | Cornmarket

Teachers who are vested members of their pension schemes are approved for participation in the Civil Service Pension Schemes and Local Government Transfer scheme.

This provides for the transfer of earlier pensionable service with any other organisation in the network. A list of participating organisations can be found here.

Under its provision there is a link-up between the Civil Service, the Garda Siochana, the Defence Forces, National and Secondary Teachers and over 110 participating bodies, most of which are in the public sector.

It also provides for the payment, on a transfer value basis only, of a once-off lump sum to organisations outside the network, provided that certain conditions are met.

Further information can be found here.

Therefore, if you have service in another participating organisation you can contact the Pensions Section of the Department of Education to enable the relevant service to be transferred. The form to request a transfer is available here for members of pre 2013 pension schemes –  and here for members of the Single Public Service Pension Scheme.

It is advisable to seek financial advice before making any alterations to your pension scheme.

It is recommended that teachers who gave service abroad, particularly in Northern Ireland or Britain, should not withdraw contributions to the appropriate pension schemes but opt for preserved benefits so that they can claim additional pension from their previous employers at the appropriate time, the normal retirement age for this pension scheme.

If you worked in the UK you may have a state pension entitlement or occupational pension scheme there to claim from.

Currently, under a limited extension scheme, workers with a UK state pension entitlement can purchase significant additional pension benefits for a limited time only.

Who can apply?

Workers, including teachers, who were employed in the UK for at least three consecutive years paying national insurance contributions and who have gaps in this service between 2006 and 2016, can currently buy up to sixteen additional years for their UK pension. The sixteen years, includes any gaps in contributions from 2006 to 2016 plus any missing contributions for the previous six years.

What is the deadline?

A deadline of 5 April 2025 has been set for voluntary contributions to be made to make up for gaps in service between 2006 and 2016. After this date contributions can be made to cover the previous six years only.

Why would I consider doing this?

If you meet the minimum of 10 years of national insurance contributions, you would be eligible for a UK state pension on retirement.

If you continue to make voluntary national insurance contributions, you may be able to claim a full Irish and full UK state pension when you retire.

What is the current UK state pension worth?

A full UK state pension, £185.15 per week in 2023, requires 35 qualifying years, with the minimum amount paid to those with 10 years qualifying service, which is 10/35 of the total pension or £52.90 weekly at this time.

How do I apply to make contributions?

• Locate your National Insurance Number and your passport.
• Go to http://tax.service.gov.uk/check-your-state-pension/account to set up a Government Gateway Account (or log in to your existing account). Download the Gov.uk ID check app which is used to verify your identity.
• Use this to log into https://www.gov.uk/check-state-pension to see your national insurance record including how many years of contributions you have and any missing years.
• To buy back years, print and complete the CF83 application form found here and post this by registered post to HMRC.

Where can I get further information?

Further information is available here.

If you pay Class A PRSI and availed of unpaid leave you can contact the Department of Social Protection to claim credited PRSI for this time.

 

This will be of benefit to you when claiming the State Pension Contributory which is moving to a total contributions approach.

• The maximum state pension is based on 2080 Class  A contributions (or 52 times 40 years). You receive a Class A contribution each week you work.
• If at the state retirement age, you have 1040 class A contributions you would receive 1040/2080 of the state pension, in this case 50%.

If unpaid maternity leave is taken, upon returning to service, an employee may apply for credited PRSI contributions for this time, using the SW11 (PDF) form.

If you avail of Parental Leave you can get a credit for each full week taken. To do this you will need a letter from your school confirming  the duration, number of weeks and exact dates of Parental Leave taken, this can be sent to

Client Eligibility Services – Buncrana

Department of Social Protection, McCarter’s Road, Buncrana, Donegal, Co. Donegal, F93 CH79

Email : contributionstatement@welfare.ie

Phone number: 01 4715898   0818 690690

If you engaged in substitute work in the 1980’s or 1990’s that is not already on your service record you can claim this substitute service for pension purposes.

This pre 2001 substitute service may not be recorded on your service history as during this time substitute teachers were paid directly by the school from a Department of Education grant.

As such there were no pension deductions made from this service and it may not be included on your service record for incremental salary progression.

This substitute service may be bought back for pension purposes and recognised for incremental credit.

How do I know if my substitute work is part of my service history?

If you believe you may be affected, the first step is to check your service record to see if your periods of substitute work are recorded are not.

Teachers can request a copy of their service history from the Department of Education by using the online payroll contact form found here.

How do I claim for my substitute service that is not on my service history for pension purposes?

In order to have substitute service recognised for pension purposes, the teacher will need to request that the S1 form, Verification of Teaching Service for Pension Purposes (PDF) is completed by each school they substituted in. The completed form/s are returned to the pension section of the Department of Education.

What is it is not possible for the school to verify the substitute service for me?

In some cases, due to amalgamations, school closures, change of personnel etc. it may not be possible for a school to complete and S1 form, Verification of Teaching Service on your behalf.

If so, you can request an affidavit from pensions@education.gov.ie to testify that you completed the service. Your signature on the affidavit will need to be witnessed by a solicitor or commissioner of oaths.

What PRSI Class contribution is made for substitute service?

All substitute service is at Class A PRSI.

How do I pay the outstanding pension contributions on the substitute service I am claiming?

The Department of Education will deduct the cost of pensions contributions for this substitute service from the teacher’s lump sum on retirement.

The teacher will receive a Rettax form from the Department of Education once this deduction has been made. They will then be able to claim tax relief on this amount.

What will the superannuation contributions for this substitute service cost?

There are different formulae for the calculation of the cost and the amount of service that is allowed based on the specific periods of service, whether this was

• Pre 31^st Aug 1991,
• Sept 1991- Aug 2001 or
• post 1^st Sept 2001

These are outlined in S.I. No. 434 of 2009 Primary School Teachers Pension Scheme.

In general terms, but with important variations for earlier years, each day of qualified substitute service may be calculated as a pro-rata fraction of a 365-day year.

How do I claim for incremental credit for substitute service that is not on my service history?

DES Circular 10/01: Amendments to the Scheme for the Award of Incremental Credit contains the eligibility criteria for application under section 5 – Substitute teaching service within the Republic of Ireland, it also contains a link to the application form.

To apply for incremental credit, a person must obtain verification of service from the relevant employer and submit the application form to the Incremental Credit section of the DE for assessment.

To be eligible for Incremental Credit purposes, the service in question must be capable of being verified.  Every effort must be made by an applicant to obtain certification of service. Where it is not possible to verify the previous service (teaching or non-teaching) arising from the loss/non-availability of official records e.g. through school amalgamation, school / employer closure etc. other records may be considered to make service reckonable for Incremental Credit.

These sources may include a combination of multiple records from:

1. • The school authority and/or the patron Body of the school or other management body of the school if outside the jurisdiction.
   • The school which replaced the school where the service was given as in the case of an amalgamation.
   • The former Principal/Deputy Principal or a former colleague.
   • Any other known source such as the local Revenue Office or Department of Social Protection (or equivalent from outside the jurisdiction).

Examples of such may include, though not limited to:

1. • Past payslips / P.60 Records (or equivalent).
   • Revenue records including PAYE/PRSI records (or equivalent).
   • Previous references that the teacher may have received from the employer.
   • Confirmation of employment from a colleague who they would have worked with at that time. In such instances, an appropriately completely Affidavit from the relevant colleague will be required.

Any of the above information supplied must also be supplemented by an appropriately signed Affidavit by the claimant of Incremental Credit. The Witness to the signatory must be a Commissioner for Oaths or a practising solicitor. The blank Affidavit is available here. Where the service was provided in lieu of an absent existing teacher, the name of the teacher who was absent (if known) and the reason for the absence should be stated. The reason as to why these employment records are not available must be stated by the applicant and verified.

It is then a matter for the DE to determine if the information contained in addition to the affidavit can be accepted as reckonable for incremental service. There is no appeals process where an application for substitute service to be recognised for incremental credit is refused.

Are there any other considerations?

Yes. Some things to consider before tracking down this substitute service include-

• Is it a very small amount of service? if so, this may not be worthwhile time and effort wise.
• That all substitute service claimed is at Class A PRSI, if all of the rest of your service was at Class D PRSI, then claiming this service puts you into the category where you can engage with the Department of Social Protection on retirement regarding any state benefits you are entitled to based on the small amount of Class A PRSI , you may have some entitlement to some form of State pension (based on your A contributions only).  It could be very small/ may not meet the threshold. See the section on PRSI and retirement for further information.
• If you already have 40 years of paid pension service from your other work on your service record you would not need to claim this substitute service, as you will already have the maximum number of paid pension contributions possible.

Circular 10/2001 is the circular regarding incremental credit for recognised service. If incremental credit is granted a teacher will be moved up the pays cale and if they are due outstanding uplifts, they will receive backpay from the Department of Education.

However, teaching service abroad which is recognised for incremental credit on the pay scale is not recognised for pension purposes, since no contributions were made to the pension scheme during the period of service abroad.  Therefore, it may be worth investigating Notional Service/AVC’s should you wish to cover this ‘gap’ of pension contributions.

What are the criteria for Service Abroad?

Item 4 of Circular 10/2001 looks at teaching service given outside the Republic of Ireland and states the criteria as follows: –

• The service must have been satisfactory (i.e., primary school equivalent), remunerated and full-time.
• The school was subject to State inspection and offered a range of studies which incorporates all the courses prescribed on the National Curriculum for the State in question.

The forms are attached to the circular, should you need to apply. You must print out the form and send it to each school you worked in abroad. The school sign and stamp the form to verify your service and return to you.  You then you send the form(s) back to the Department of Education.

Note: Should the DE refuse the award of incremental credit, there is an appeals mechanism.

Why apply for Incremental Credit?

There are 25 points on the old payscale (old payscale is applicable to those who entered teaching prior to 1 January 2011).  The Old and New Entrant pensions are both calculated using a teacher’s point on the payscale at retirement.  Your payslip displays which point on the payscale you are on.

Where the incremental credit would be financially beneficial would be: –

• If the Incremental credit was granted, you would be on a higher point of the payscale, therefore any pension benefits under the Old/New Entrant Pension Scheme would be calculated from a higher salary scale point.
• Members of the Single Public Service Pension would also benefit from the increase in their referred pension amounts as they move to a higher point on the salary scale.
• Teachers automatically receive the ’35 Year Allowance’ (commonly known as the Long Service Allowance) when they have been on point 25 (the highest point of the salary scale) for 10 years.  If Incremental Credit was granted, and the credited time meant you reached the long service allowance threshold, then the long service allowance would also be calculated into your pension benefits.
• Should there be any outstanding monies due, you will receive backpay from the Department of Education