Dáil Éireann Debate, Thursday - 5 November 2009
243 Deputy George Lee asked the Minister for Education and Science if the contributions made by teachers for their pensions were invested into a fund or if these contributions were used as income for the Exchequer; and if he will make a statement on the matter. [39950/09]
View answerThe pension scheme for first and second level teachers are unfunded defined benefit schemes. There is no pension fund nor are contributions by teachers invested. Like many other public sector pension schemes, the teachers' schemes operate on a pay-as-you-go basis. Pension contributions are credited as appropriations to the Vote for the Department of Education and Science in the year in which they are received. The cost of pensions in payment during the year is met from current revenue through monies voted by the Oireachtas. In the case of VEC teachers, the contributions are retained by the VEC and an appropriate adjustment is made to the allocation to the VEC to meet pay and pensions costs.
