THE STATE was entitled to withdraw an early retirement scheme from 18 teachers because of the state of the public finances, a High Court judge has ruled.
The teachers, who work in a number of different post-primary schools where student numbers have decreased, had sought to retire under the scheme introduced in 1997 by the Department of Education but withdrawn by the Government in the 2008 budget.
Ms Justice Elizabeth Dunne yesterday refused the teachers an order restraining the Minister for Education from suspending or withdrawing the scheme.
The judge said she was satisfied declining economic circumstances were such “the overriding public interest in taking the decision to suspend the scheme must outweigh any legitimate expectation that they had to pursue their applications under the scheme”.
The judge also found no basis for suggesting the teachers were entitled to a reasonable period of notice before the suspension of the scheme.
While there may be cases where a change in government policy does require a reasonable notice period for people affected, this was not so here because the declining economic circumstances were an “overriding public interest” which outweighed the expectation to apply for early retirement, she ruled.
The High Court heard the scheme was started on a pilot basis in 2000 when it was extended for five years and thereafter on a year-by-year basis by the department.
In 2007, the Department sent out a circular saying a review of the scheme was due to be completed in mid-2008. Pending this, it had been decided the scheme would be continued until the end of the 2008/2009 school years.
The teachers, eight of whom worked in Belcamp College, Coolock, which is to close this year, had claimed they were entitled to early retirement under a part of the scheme related to those “in posts which are surplus to requirements”. They said they intended to avail of the scheme after receiving the 2007 circular.
In October 2008, the Minister for Finance announced in his budget speech the scheme was being withdrawn, saying an estimated saving of €10 million would be made by discontinuing it. The teachers were informed of that decision the following November, which they said effectively denied them an opportunity to submit applications.
The Minister argued that the scheme was on a pilot basis and was over and above basic employment entitlements. In contrast to other areas where cuts were being made, the revocation of the scheme would not cause any direct financial damage to any person, it was claimed.