THERE MAY be a sharp increase in the number of teachers applying for retirement in the coming year amid concern about possible changes to pension arrangements.
Last night, the INTO predicted a “massive increase in teacher retirements’’ next year.
Secondary schools may lose many principals and senior teachers who perform key management roles.
But the expected exodus from the profession will be welcomed by many teaching graduates struggling to find employment. According to the INTO, the Budget measures on pensions will have a far greater impact on teacher earnings than pay cuts.
Sheila Nunan, incoming general secretary of the INTO, said every teacher with options to retire in the near future would be considering their position. She said she would not be surprised if all teachers with 35 years’ service or more examined the option.
The union believes many teachers will seek to retire next year to avoid their pension and lump sum benefits being calculated on the lower salary.
In his Budget speech, Minister for Finance Brian Lenihan signalled a possible threat to pension parity.
Currently, retired public servants receive pension increases at the same rates that apply to serving public servants. Mr Lenihan said he would review these arrangements and consider linking future pension increases to increases in the cost of living.
Although he announced a pay cut for public servants of 5-8 per cent, he said “to avoid a destabilising rate of retirement among older public servants, the pension entitlements of those retiring in 2010 will not be affected”.
So while teachers’ salaries will be reduced in 2010, if they retire during 2010, their pension and lump sum calculations will be based on salary before the pay cut.
The INTO has advised all its members not to make rash judgments and said they have adequate time to study their position and seek appropriate advice. Uncertainty over the possible taxation of lump sums has already led to an increase in teacher retirements.
The average number of primary, secondary and community and comprehensive teachers retiring annually between 2000 and 2008 was 1,080.
Already this year, there have been 1,945 applications for retirement. A total of 850 primary teachers and 738 second-level teachers have retired on pension this year. Within the overall total, 253 principals have retired from primary schools, while 68 principals have retired from secondary, community and comprehensive schools.
Deputy principal retirements total 260, of which 208 were primary and 52 were from secondary, community and comprehensive schools. Teachers may work until they are 65, but may retire if they have 40 years of service or after 35 years on a reduced pension.
The public service pension levy and higher health and income levies are cutting at least 13 per cent from the average teacher’s salary of about €60,000.