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Teacher Retirements

Dáil Éireann Debate, Tuesday - 19 November 2019

Tuesday, 19 November 2019

Ceisteanna (156)

Thomas Byrne

Ceist:

156. Deputy Thomas Byrne asked the Minister for Education and Skills the actions taken to date to address errors in the estimated number of teachers retiring or leaving the system per year; the subsequent cost incurred; and if he will make a statement on the matter. [47219/19]

Amharc ar fhreagra

Freagraí scríofa

As indicated in a previous response to the Deputy earlier this year, for the purposes of the annual Estimates process, my Department makes forecasts, based on trend analysis, of the scale of teacher retirements expected for the following year.

Forecasting retirements in the education sector is complex, there are many social, economic and personal factors which influence teachers as to when they will retire. The availability of the options to retire on pension in the case of teachers covers a very wide age spread from age 50 to age 66 (age 70 from 2018). Approximately only 5% of teachers work to their compulsory retirement age, the remainder retire voluntarily where they have the reached the required service or reached the minimum age threshold to do so. That said the approach adapted by my Department has proved robust and has provided a good indication of the scale of likely retirements and the expenditure implications for the following year.

The need for supplementary estimates over the period 2014 to 2018 to cover additional pension costs did not arise due to errors in forecasting.

Prior to Budget 2019, and aside from allocations to cover pay agreements, there had been no significant increase in the expenditure base for pensions for a number of years, despite increased costs. Given that this expenditure is demand-driven and non-discretionary, it was therefore necessary to seek supplementary estimates to provide for retirements and pension costs over and above what would be supported by the original allocation, having regard to offsetting savings which arose in other expenditure areas.

This is an issue which has affected other Votes with significant pension commitments.

My Department, and the Department of Public Expenditure and Reform, have worked closely to resolve this issue in order to better align the expenditure allocation with the expected pensions and retirements bill. For 2019, the Government allocated an additional €147 million in funding for pensions in the education sector, in addition to €12.5 million to cover the pensions-related costs of the Public Service Stability Agreement. This was calculated on the basis of work undertaken by the Department of Public Expenditure and Reform using data provided by my Department.

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