The Department applies abatement of pension to retired teachers where the amount of pay together with the pension being received is greater than the pay on which the pension is based. The effect of this is to reduce or sometimes stop pension where a retiree returns to teaching.
There have been a number of employment related changes introduced in the past year which impact on teachers in receipt of a pension. From 1st January 2011, teachers who are in receipt of an occupational pension and who return to teach are remunerated at the first point of the reduced salary scales instead of their pre-retirement personal rate of pay. Given that the majority of teachers retire at the top of the incremental salary scale, this represents a significant reduction in the pro-rated payments for these teachers. Also, from 1 September 2011, schools are required to hold a list of registered teachers who are not in receipt of a pension and who are available for short-term positions or substitute work. Only where a school cannot source an unemployed registered teacher may it employ a registered teacher who is in receipt of a State pension.
In light of these significant reforms, and the availability of teachers who are not retired, I expect the number of retired teachers undertaking substitute work in schools to reduce in the 2011/2012 school year. My Department will, however, monitor the situation on an ongoing basis and I remain open to considering other options, including those relating to pension, in the event that these measures are not effective.