Dáil Éireann debate -
Wednesday, 14 Dec 1949

Vol. 118 No. 15

Secondary Teachers' Superannuation (Amendment) Scheme, 1949—Motion.

Minister for Education (General Mulcahy)

I move:—

That the Secondary Teachers' Superannuation (Amendment) Scheme, 1949, made by the Minister for Education with the consent of the Minister for Finance, be confirmed.

The purpose of this amendment of the Secondary Teachers' Superannuation Scheme is a simple one. Certain increased scales for secondary teachers were introduced on 1st September, 1946. Under the provisions of the superannuation scheme a secondary teacher's pension was calculated on his average income for the three years preceding the date of retirement and for pension purposes certain contributions are made by the teacher, on the one hand, to the extent of 4 per cent. of his total income, and by the school, on the other hand, to the extent of 2½ per cent. of the basic salary. A secondary teacher's income is composed of basic salary paid by the school from capitation grants and other incomes, the basic salary being for a man, £200 and for a woman £180, and the total income consists of that, plus an incremental salary paid by the State.

Teachers who retired subsequent to 1st September, 1946, retired on the higher scale, but, to the extent that portion of their three years was served on the scales in existence prior to 1st September, 1946, the pension that they have been in receipt of up to the present is a pension computed partly on the smaller pay they received before 1st September, 1946, and partly on the higher scale they received after that date. Deputies will remember that in the amendment of the superannuation scheme for national teachers it was arranged that the pension as from the date of the change would be paid on a national income based on three years' service related to the new scales. The purpose of this amendment is simply to enable secondary teachers who retired after the introduction of the new scales on 1st September, 1946, to be pensioned as if the new scales had been in operation for the three years preceding the date of their retirement. Deputies will understand that a pension based on that will imply that salaries higher than those actually received are being taken into consideration for the purpose of payment. Therefore, in order to fulfil the requirement of superannuation schemes generally, it will be necessary to require that teachers who get the benefit of this new scheme will pay a contribution of 4 per cent. on the difference between the amount which is now being calculated for pension purposes and the actual salary received by them during the period before 1st September, 1946.

Mr. Derrig

If, as the Minister says, this is in accordance with what has already been done in the case of the primary teachers, I am sure that there is not likely to be any opposition to it. So far as the superannuation arrangements are concerned, if they can be improved I am sure everyone will be pleased. It strikes me, however, that those who will be coming out immediately after the operation of the new scales will benefit very considerably, but the misfortune is that, owing to the necessity for fixing a date, those who retired immediately before—I hope the numbers are small—will not benefit at all. We are taking this date upon which the new scales came into operation in 1946 and, on condition that the secondary teachers who have retired increase their contributions proportionate to the increased salaries they were receiving, they will from that particular date receive the increased superannuation based on the new scales. But the teacher who retired immediately before that, even the day before, will be in the unfortunate position that no improvement will be made.

I can see the Minister's point that a date has to be fixed—and those who have experience of administration will know that the argument is, of course, always made: "If you go beyond the particular date of the new scales, where are you going to stop"? As we are at present discussing in the House the question of improving the pensions of those on the lower superannuation in the teaching profession, I would ask the Minister whether he is satisfied that those who retired before the new scales came into operation will be provided for; whether he has any figures to show the numbers who retired, we will say, in the year preceding the operation of the new scales, or whether anything had been done to enable those who were in the service and who might have retired immediately before the new scales came into operation to remain on so that they could take advantage of these new scales.

I understood the Minister to say that the schools pay 2½ per cent. on the basic salary. Is the position that the teachers pay 4 per cent. on the whole of the salary? If that is so, obviously the teachers will have to pay on the new scales a larger sum, and the question will arise whether the Minister is satisfied that, actuarially, the increased contribution from the teachers without any addition from the State or other sources will be sufficient to make sure that all these new payments can be effected, without loss, from the Teachers' Pensions Fund.

General Mulcahy

Those who went out before the 1st September, 1946, will not benefit directly from this scheme, but they will benefit as a result of this scheme raising the pensions of the people who came out after 1st September, 1946. This will raise the ceiling up to the point to which those with smaller pensions can be raised by the Bill which the Minister for Finance has going through the House at the present time. To that extent they will benefit. As far as the actuarial position of the fund is concerned, I understand that the fund will require a contribution from the State during the coming year.

Question put and agreed to.