Question about teaching pension

Bananaleaf

Hi all

I have a question I was hoping someone could answer for me here. I'm a bit confused about teacher pension and I've asked a couple of staff members and a rep who came to the school and I still don't understand.

After a sit-down with the rep my pension was calculated as being 1150. I presume this means per month.

I asked if this was my teaching pension and then there is a state pension on top of this, but the reps answer was sooooo confusing and he just kept talking and talking until I had eventually forgotten that I had asked a question!!

Staff members I spoke to didn't seem sure. One said the teachers pension is the state pension with a little extra added on. Another said that the state pension is about 900eur a month, so surely teacher and state pension combined shouldn't be only 1150.

Is anyone here able to help me out? In plain English preferably. Am feeling really stupid tonight as I just can't seem to get it.

amacca

Bananaleaf wrote: »

Hi all

I have a question I was hoping someone could answer for me here. I'm a bit confused about teacher pension and I've asked a couple of staff members and a rep who came to the school and I still don't understand.

After a sit-down with the rep my pension was calculated as being 1150. I presume this means per month.

I asked if this was my teaching pension and then there is a state pension on top of this, but the reps answer was sooooo confusing and he just kept talking and talking until I had eventually forgotten that I had asked a question!!

Staff members I spoke to didn't seem sure. One said the teachers pension is the state pension with a little extra added on. Another said that the state pension is about 900eur a month, so surely teacher and state pension combined shouldn't be only 1150.

Is anyone here able to help me out? In plain English preferably. Am feeling really stupid tonight as I just can't seem to get it.

you're teacher pension = state pension + a bit extra ....as I understand it

killbillvol2

It depends on when you started, how many years' service and your final salary. We'd need a bit more detail.

Bananaleaf

killbillvol2 wrote: »

It depends on when you started, how many years' service and your final salary. We'd need a bit more detail.

Sure, I appreciate that. I am not really concerned about an exact figure to be honest as I'm only 9yrs into my career, so not looking to go soon. (Well, I wouldn't say no of course ) Would just like to make sure I will have enough put away for - as the literature on AVCs calls it - "the final years of my life" :eek:

But I just meant that I was confused about generally how a 'teacher's pension' is added up.

Is it, as amacca and another colleague stated, a state pension with just a small bit extra?

august12

What rate of prsi are you paying?

Bananaleaf

august12 wrote: »

What rate of prsi are you paying?

I'm class A1.

deiseindublin

My understanding is that if you started before 2011 and are on A1 stamp is that your pension after 40 years with be 40/80 (half) of your salary and your lump sum will be circa 1.5 times your finishing salary, averaged over the final 3 years. This is a rule of thumb figure, not to be relied on.

I actually don't have a clue about the state pension but presume that we could officially get it but then this amount would be stopped from our 40/80 pension above.

You won't get the state pension if you're on the pre 1995, D1 stamp. I started 4 months after D1 stamp disappeared.

cornflake1

There is a pension calculator for civil/public service on www.cspensions.gov.ie

killbillvol2

Bananaleaf wrote: »

Sure, I appreciate that. I am not really concerned about an exact figure to be honest as I'm only 9yrs into my career, so not looking to go soon. (Well, I wouldn't say no of course ) Would just like to make sure I will have enough put away for - as the literature on AVCs calls it - "the final years of my life" :eek:

But I just meant that I was confused about generally how a 'teacher's pension' is added up.

Is it, as amacca and another colleague stated, a state pension with just a small bit extra?

Well whoever gave you a figure for what your monthly pension would be in 25-30 years time was talking rubbish. They couldn't possibly know.

At its simplest, if you work forty years you'll get a pension of half your final salary. Depending on when you started that pension will be available at 60 or later. There are other variables such a breaks in service etc.

If you intend to work considerably less than forty years you should certainly look at AVCs.

You really need to get independent financial advice from someone who will lay out all your options clearly.

Bananaleaf

deiseindublin wrote: »

My understanding is that if you started before 2011 and are on A1 stamp is that your pension after 40 years with be 40/80 (half) of your salary and your lump sum will be circa 1.5 times your finishing salary, averaged over the final 3 years. This is a rule of thumb figure, not to be relied on.

I actually don't have a clue about the state pension but presume that we could officially get it but then this amount would be stopped from our 40/80 pension above.

You won't get the state pension if you're on the pre 1995, D1 stamp. I started 4 months after D1 stamp disappeared.

If that's the case, that doesn't sound too bad. The figures I was given were lump sum of 3/80 of your finishing salary for every year of service post 2014. And 1/80 for the pension.

Im not a maths teacher :P so that might be exactly the same as what you have just explained.

Blaizes

Big difference between pre 2011 pension and post 2011 pension is my understanding.Your union should be able to give you more guidance on it and direct you to the right documents. I lost all my rights to old pension scheme after I stopped working and had my kids. Look into it and do your homework.There are some documents about the new and old pension schemes if you google it, I can't remember what they are now though.Under the new scheme you can't retire early is my understanding ( unless on health grounds) and have to work till 68.The pre 2011 pension is much better and you are very fortunate if you qualify for that one.

rainbowtrout

Bananaleaf wrote: »

If that's the case, that doesn't sound too bad. The figures I was given were lump sum of 3/80 of your finishing salary for every year of service post 2014. And 1/80 for the pension.

Im not a maths teacher :P so that might be exactly the same as what you have just explained.

That's correct. If you do 40 years you will get 40/80ths of final salary which is half.


The teaching pension includes the state pension when you pay A rate PRSI. So for arguments sake if you finish on a final salary of 60k, then you get

40/80 * 60k = 30k pension
120/80 * 60k = 90k lump sum.

As the state pension is roughly 12k per annum, the 30k is made up of 12k state pension and 18k teacher pension contribution. *Some* financial reps calculate figures showing only the teacher contribution, and if they are pulled on it, bull**** on saying that they don't have the formula to hand for the public service pension, or that the state pension isn't guaranteed. This is a scare tactic to make you think you will be broke at retirement so you better take on one of their products.


I just had a quick search and you had a thread on pensions a few months back, and you will have 39 years done at 65 which is the earliest you can drawn down your pension.

If you want to calculate the value of your pension at 65, the best estimate is whatever is the highest point of the scale currently, your degree and dip allowance (and any other allowances you are entitled to), and the long service allowance which is paid after 35 years service. Assuming you were to stay in your job as it is now with no further promotions, that will be your top salary as the scale currently stands.

Do your 39/80 * final salary = pension calculation based on that

and your lump sum

117/80 * final salary = lump sum


Adjust the formula if you plan to leave earlier than that, but remember you can't draw any of it down until 65.

Mardy Bum

Blaizes wrote: »

Big difference between pre 2011 pension and post 2011 pension is my understanding.Your union should be able to give you more guidance on it and direct you to the right documents. I lost all my rights to old pension scheme after I stopped working and had my kids. Look into it and do your homework.There are some documents about the new and old pension schemes if you google it, I can't remember what they are now though.Under the new scheme you can't retire early is my understanding ( unless on health grounds) and have to work till 68.The pre 2011 pension is much better and you are very fortunate if you qualify for that one.

It is post 2013 I think not 2011.

Blaizes

Mardy Bum wrote: »

It is post 2013 I think not 2011.

Yes actually you are correct, sorry did mean to write that.