Teacher Pension Question Please

S

sidzer

Registered User
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Hi all,

I am currently working on some figures to plan my retirement! (Post 1995 / Pre 2004 pension holder)

I am 53 - and hope to go at 57 or 58.

I am currently on point 23 of the pay scale.

Age 54 = point 24
Age 55 = point 25 - the top of the pay scale (which is a jump of €4101 from point 24)

Do I need to be at the top of the scale for 3 years for this rate (point 25 rate) to be considered my final salary for my pension?

At 57 I will have been on this rate for 2 years.

Or

Will my final salary be worked out based on an average over the previous 3 years?

Thanks S
 
I think you have to hold allowances for 3 years to be fully considered as final salary (otherwise they will be considered on a pro-rata basis for the number of years you held them). I understand your base salary for pension purposes is you final salary regardless of the length of time you have been at that salary point. I think you would be best to consider the actuarial reduction of your pension if you go at that age. Am I correct in thinking that there would be no actuarial reduction if you stay until 60?
 
Hi Sidzer
Your pension will be based on your final salary ie point 25, you do not have to be on it for 3yrs, it will also be based on allowances, it is a 40year accruel, so if youve done the full 40 ( which i doubt given your age), the pension amount will be half of final salary+allowances.
Your lump sum will be 1.5times final salary + lump sum, again less one fortytieth per yr if under 40yrs service.
 
stoves1 said:
the pension amount will be half of final salary+allowances.
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Untrue unless you have held the allowance for at least 3 years. Otherwise the allowance will count pro-rata for final salary based on the number of years you have held it prior to retirement.
 
sidzer said:
Thanks for the replies. Is an increment considered an allowance?
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Different things... an increment is your annual (biannual or triennial) salary increase. An allowance would be something like an allowance for teaching on an island. An allowance is like an annual expense. It doesn't change, unless increased as part of a pay deal.
 
sidzer said:
Will my final salary be worked out based on an average over the previous 3 years?
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Yes or as far know, whichever is higher. If for example, pay was reduced like it was after the crash, your pension would be based on the highest amount you earned over 3 years.
 
sidzer said:
Will my final salary be worked out based on an average over the previous 3 years?
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No, your final salary is your base salary at retirement, plus any allowances you have earned for at least three years. If you job shared pre retirement then your final salary will be based on the wholetime equivalent for that post
 
I got on to the HR in work.

They advised me that:

Allowances need to be held for 3 years or more

but

That increments are not considered as allowances but basic pay and don't need to be held for any length of time for pension purposes.

Thanks for the replies
 
sidzer said:
Allowances need to be held for 3 years or more
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I don't think that is strictly accurate. They need to held for at least 3 years to be fully pensionable. For less than 3 years it is on a pro rata basis, eg, if you receive a pensionable allowance of €3,000 for one year only, then €1,000 would be pensionable.

sidzer said:
Will my final salary be worked out based on an average over the previous 3 years
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The pension is based on the salary in the final year unless you received a promotion (as opposed to increments) within your last 3 years.
 
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Bumping up here to ask tag on question, what about long service increment, paid after 25 years at top of scale? Is this treated as an allowance, or the same as an increment? Wondering if my partner needs to be in receipt for 3 years if it is to be fully added to pension?
 
I have just recently received the long service increment but it appears on my pay cheque as a "35 year allowance". I don't have 35 years service but you get it after being 10 years at point25 of the scale. My understanding is that this will be counted pro rata towards my final salary amount for pension purposes depending on the number of years pre retirement that I hold this allowance ( Max 3years for full allowance be added for pension calculations)
 
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