Recognition of Substitute Service for Pension Purposes w.e.f. 1 January 2005
DES Circular 28/04 (Word) Paragraph 4(d) states:
(d) Superannuation Deductions for Substitute Teachers:
Superannuation deductions for substitute teachers commenced on 1 January, 2005. Please note, the only group from whom deductions will not be made are teachers who retire on compulsory age grounds and are not new entrants as explained in Circular 10/04, i.e. post April 2004. 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)
- Additional Superannuation Contribution (ASC) effective from 1 January 2019. The ASC replaces PRD (the “pension levy”) and reduces the current overall contribution.
Substitute service prior to 1 January 2005
On appointment to a permanent teaching post, a teacher can have any previous service as a substitute teacher credited for superannuation purposes. Separate conditions apply for the following periods:
- All substitute service given prior to 1 September 1991.
- All substitute service given in the 1991/’92 and 1992/’93 school years
- All Substitute service given after 1 September 1993.
In each case the amount of substitute service reckonable for superannuation will be calculated by the DES. The teacher must pay a superannuation contribution as no contributions were made at the time. 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. Please note, collected superannuation contributions may be eligible for tax relief.
Substitute Service Records
In many cases, especially for substitute service in the 1980’s and early 1990’s, this work may not have been recorded by the DES as the service was not eligible for superannuation at the time. In order to have substitute service included for pension calculation, the S1 form “Verification of Teaching Service for Pension Purposes” (PDF) will need to be completed by each school that verified service is required from. This form should be submitted with the relevant retirement application form. Members, unable to have their substitute service verified, on application to the DES Pensions Section complete with evidence as to why the service cannot be verified with the S1 form, may request an affidavit form to complete the process.
Superannuation Credit For Certain Service In Capitation National Schools Background
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 superannuation scheme.
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 – i.e. recognition of the balance of such service which is not currently recognised.
- 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’ superannuation scheme.
- 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.