Pension-related deduction for retired teacher

Homer

Registered User
Messages
434
What strikes me as a very unfair situation has arisen for a friend of mine.

She retired from teaching at age 65 a number of years ago, but subsequently went back to work as a substitute teacher, initially on a part time basis, but now full time. As she is past retirement age, she is not included in the pension scheme and is not paying any employee contributions.

However, a pension-related deduction is being made from her salary. I had a look at the FAQ on the subject and it states that is applies to the remuneration of pensionable public servants. However, it then goes on to say (inter alia) in Section B that the criteria for being liable to PRD are that one is a public servant and - (a) is a member of a public service pension scheme or (b) is entltled to a benefit under such a scheme.

It appears that this latter criterion is being used as a justification for applying the deduction even though she is not entitled to any benefit in respect of her current employment. This strikes me as patently unfair and it may not have been intended to operate in this way when the legislation was framed. She tried talking to payroll department about it and got the runaround from someone who sounded like they really didn't understand the issue (or maybe just didn't care).

I would welcome any advice on where she should go from here. Or is it just an anomaly that she is going to have to accept if she wishes to continue teaching?
 
My understanding was that any retired public or civil servant could not receive a payment that would bring them above what would have been 100% of their salary before retirement including the pension.
So pension is 50% of final salary so person can only earn up to 50% without losing right to pension payment, something sounds off about this if she's full-time.
 
Thanks. Is your response based on having dealt with this issue previously or just based on your understanding of how things work in general in the public sector?
My understanding that the PRD is pretty much universally applied. It was a public sector pay cut in all but name as there was a worry that if it was called a pay cut that it could have been in some respects unconstitutional.
 
24. I am a public service pensioner who works part-time in the public service. Is all of my income (pay and pension) subject to PRD?

No. Where a pensioner returns to work in the public service, remuneration in respect of that work is subject to PRD but his or her pension is not.

From this document:
http://www.cspensions.gov.ie/faq5.pdf
 
Thanks for the replies. Guess she's snookered so. I should have read down as far as question 24 when I was looking at the FAQ.
 
My understanding was that any retired public or civil servant could not receive a payment that would bring them above what would have been 100% of their salary before retirement including the pension.
So pension is 50% of final salary so person can only earn up to 50% without losing right to pension payment, something sounds off about this if she's full-time.

I can see the logic of applying that limit to someone who retires before age 65, but maybe it doesn't apply after that age?
 
I can see the logic of applying that limit to someone who retires before age 65, but maybe it doesn't apply after that age?

dereko1969 is correct. Its called "Pension Abatement". I am not aware of any exemption for over 65s, but may be wrong. Question 20 and the Appendix from this Dept of Ed document refers: https://www.education.ie/en/Circulars-and-Forms/Active-Circulars/cl0027_2018_faq.pdf .

See also the links from this IMNO page: https://www.inmo.ie/Home/Index/8131/12895 .
 
The PRD is to be converted into a pension contribution from next year so that may change the situation in this case.
 
Back
Top