New Pension Scheme: NQTs and 26 Week Rule

Since the beginning of this year (January 2013) a new pension scheme has come into effect for new entrants to the public sector.

This was strongly rejected by the INTO as an unfair and larcenous pension scheme. The value of one's pension is based on career averaged earnings as a result of this new scheme, and due to the formula used the result is that the value of a new entrant's pension since January is 20% less. The public servant in question will in effect pay more into their pension fund than they will receive back on retirement.

This was researched and proven in independent research commissioned by the INTO, ASTI and TUI, and published in the Trident Report. (available at www.into.ie.)

Those teachers who had previously been employed by the Dept. of Education and Skills before January 2013, will remain on the 2004 scheme, and their conditions remain unchanged regarding pensions, unless they break the '26 week Rule'.

This rule would dictate that any teacher who has been in the service for any amount of time, retains their pension conditions UNLESS, they break service for 26 weeks or more. ie. they do not receive a pay check for 26 weeks or more, and will be considered a 'new entrant' on return to employment in the DES.

For example, if a teacher graduated in 2011, worked until June 2012, has been subbing in this current school year, but since Christmas has not worked a day due to various circumstances, they are at risk of loosing their pensions entitlements.

If their last day working (subbing, temporary contract, maternity leave etc.) was December 21st 2012, and they now decided to move abroad for 6 months to work, the 26 week rule will take effect.
When they return from their 6 month break, they will therefore be treated as a 'new entrant' and would come under the new Career Averaged Pension Scheme (20% less value).

So how do you combat this?
1. Ensure your service with the DES does not become idle for 26 weeks or more.

How do I do this?
1. If you have worked in 2012, 2011, 2010, etc, then you must not let 26 weeks lapse before receiving a pay check from the DES. Therefore, even one subbing day ensures this will not happen.

'I'm travelling abroad for the rest of this school year, and do not intend working in a school here...What do I do?'

• If it is envisaged that you will not work in a school here this year, it is strongly advised that you make arrangements in order to do one day or a period of subbing before June 2013. If not, 26 weeks will lapse, and you will be considered a 'new entrant' when you return to teaching here.

'I'm subbing now, but work is hard to come by...What do I do?'

• Subbing may be hard to come by, but as long as you do not go 26 weeks without one day's work, you will be OK, so one days subbing is enough, but obviously plenty more is ideal for obvious reasons!

Hopefully this will clear up some confusion about the new pension scheme, and who will be influenced and effected by it's callous and larcenous measures.