Tommy Broughan (Dublin North East, Labour)
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Question 277: To ask the Minister for Education and Science if the early retirement scheme at 55 years for teachers who have provided long and dedicated service to the education system has been abolished in view of the series of cutbacks in the education sector; if not, the status of the early retirement scheme; the number of teachers due to avail of the scheme in 2008; the number who availed of it each year from 2002; and if he will make a statement on the matter. [36691/08]

Batt O'Keeffe (Cork North West, Fianna Fail)
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The Early Retirement Scheme for teachers, which had operated on a pilot basis since 1996/97, has been suspended in all sectors until further notice. There will be no retirees under the scheme in 2009. While the Scheme had been under review, the reason for its suspension stems not as a result of that review but from the current challenging economic climate within which Government expenditure must be prudently managed.

The Scheme, which was a voluntary scheme and was introduced with the objective of promoting efficiency and effectiveness in the school system, consisted of 3 Strands. Strand 1 applied to teachers with not less than 15 years' service who were consistently experiencing professional difficulties in their teaching duties. Strand 2 applied to teachers whose retirement would provide their schools with an opportunity to enhance the education service provided through facilitating change. The teachers had to be aged 55 years or more and had to have a minimum of 20 years' service. Strand 3 applied to teachers who were in posts which were surplus to requirements.

The scheme provided for the grant of added years to teachers on retirement provided that total pensionable service did not exceed 35 years in the case of Strand 1 or 2, or 40 years in the case of Strand 3. Subject to the above limits, a teacher could receive the following added years: Strand 1 — 25% of service (subject to a maximum of 5 years); Strand 2 — up to 2 years; and Strand 3 — 35% of service (subject to a maximum of 7 years).

A teacher who retired under Strand 3 could opt, in lieu of added years, for a severance gratuity at the rate of 3 weeks' pay per year of service to age 65, subject to a maximum of 27 weeks' pay. The Table attached gives details of the number of retirements of Primary, Secondary, Community, Comprehensive and Vocational teachers in the period 2002-2008.

Other schemes of retirement before normal pension age are available. Teachers can avail of voluntary retirement at 55 years of age where a teacher has 35 years' service or cost-neutral early retirement. A teacher, other than a new entrant appointed after 1 April 2004, who has reached the age of 55 years and has at least 35 years of actual pensionable service, may retire voluntarily. There is no actuarial reduction in benefits and credit for certain pre-service training is given in order to assist teachers to reach the 35-year threshold for retirement. Under cost-neutral early retirement, a teacher aged 50 years or over (55 years in the case of new entrants appointed after 1 April 2004) has the option of an immediate cost-neutral early retirement pension and lump sum on resignation. The cost-neutral early retirement benefits are actuarially reduced to take account of the early payment of the lump sum and the longer period over which pension would be paid.