New Entrant Teacher - Preserved Benefit Pension

I started teaching in 2008, my pension scheme is new entrant; I'm on salary scale 17 and I have a primary degree allowance of €5875 which I have since I started working.

I have about 10 years to go to retirement and I am considering resigning my FT job. I have some savings and am considering not taking CNER but leaving my pension until 2034 and taking it then.

When retirement dates comes around then I’m wondering what my pensionable salary calculations would be based on.
It would be salary scale 17? Would it include my allowance or would that be gone because I resigned?
I’m going through various DES pension docs and I will talk to the INTO / DES but just thought someone out there might have an idea.

Thank you.

furrym said:

I'm on salary scale 17 and I have a primary degree allowance of €5875 which I have since I started working.

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Your preserved pension would be calculated on this, ie, the figure at your normal retirement for point 17 on the scale and the figure at that time for this degree allowance. Plus any pensionable allowances you may have had over the past 10 years - but you would need to have held them for a minimum of 3 years to get the full benefit.

Complicating factors might include any restructuring of the salary scale or allowances in the meantime. But basically your pension would be calculated on the above but as uprated to the equivalent rate at your normal retirement age.

furrym said:

I have some savings and am considering not taking CNER but leaving my pension until 2034 and taking it then.

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Make sure to keep your PRSI contributions up to make sure you qualify for state pension.

This can be done via voluntary contribution, other employment or drawdown from an ARF if you have one.

Thank you both for taking the time to reply. I was really hoping you'd say something along those lines.
I'm lucky enough to have been working since 1988 so my PRSI contributions are up above 1700 so that's "banked" I guess and make me ok for the OAP @ 66?

I've another 2 questions. If I was to resign June 2025 and then do casual subbing (intermittently, up to the 40 days) I would be on a casual sub qualified rate.
I believe my pensionable service would increment (if I managed to stay on the same new entrant scheme (work within each 6 month period))?
Would my "preserved pension" @ 65 / due in 2034 still use my degree allowance and as you say any pensionable allowances (or proportion of) that I had in the last 10 years?

Again, thank you.

furrym said:

my PRSI contributions are up above 1700 so that's "banked" I guess and make me ok for the OAP @ 66?

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Not for a full pension. You need another 380 contributions (2080 in total), which can be paid or credited. Might you have had any home caring periods that could be included?

furrym said:

If I was to resign June 2025 and then do casual subbing (intermittently, up to the 40 days) I would be on a casual sub qualified rate.
I believe my pensionable service would increment (if I managed to stay on the same new entrant scheme (work within each 6 month period))?
Would my "preserved pension" @ 65 / due in 2034 still use my degree allowance and as you say any pensionable allowances (or proportion of) that I had in the last 10 years?

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The service should count towards your pension but I don't know how it works. If in any doubt you could leave it more than 6 months before any subbing.

furrym said:

I have some savings

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It would be useful if you could elaborate on how much you have.

You might get a better return (albeit with some risk) by making an AVC. I’m not the expert but purchase of notional service might be an option too.

This is me in numbers.

I job-share and earn about 2200 net monthly.

Run a house/car/usual stuff – no mortgage or college fees.

I have access to about 25k savings currently.

In 2026, I’ll get money out of a An Post solidarity bond c. 70k

In 2032, I’ll get 377 net monthly (estimated) from a prior job pension.

In 2033, I’ll get 325 net monthly (estimated) from a prior job pension.

In 2034, I’ll get the DES new entrant pension

In 2035 I’ll hopefully get the bulk of a state pension.

I'm risk adverse & no I don’t have an AVC, I also applied to the DES last week to see what notional service would cost me.

Thank you both again…I’m a small bit of a numpty as regards all these but there’s nothing like some decisions to be made to get me focused. I hadn’t researched the max OAP contributions yet so will need to try and get 380 more (as you say paid or credited).

Have a read through this thread
This will give you a better idea of the possibilities for gaining extra Prsi after you cease employment.

Aim to keep claiming Jobseekers credits up to the end of the calender year of your 63rd birthday. This will keep your options open to possibly qualify for Benefit Payment 65.