Finian McGrath (Dublin North Central, Independent)
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Question 273: To ask the Minister for Education and Science if he will support the case of a person (details supplied) in Dublin 5. [40235/08]

Batt O'Keeffe (Cork North West, Fianna Fail)
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It was recently announced that the Early Retirement Scheme for teachers, which had operated on a pilot basis since 1996, has been suspended in all sectors until further notice. The Scheme, which consisted of 3 strands, was a voluntary scheme. Like other programmes under my Department's remit, the continuance of the pilot scheme is subject to available resources and to changes in Government policy. While the scheme has proven to be a useful management tool in the school system in the past, the current budgetary constraints mean that sometimes difficult decisions must be taken in order to meet the economic challenges faced by the country.

Notwithstanding the suspension of the Early Retirement Scheme, other schemes of retirement before normal pension age remain available to teachers. Teachers can avail of voluntary retirement at 55 years of age where a teacher has completed 35 years service or cost-neutral early retirement.

Under the 55/35 year rule 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. Where the teacher has less than 35 years actual service, credit for certain pre-service training is given in order to assist teachers to reach the 35-year threshold for retirement. For example, a teacher, aged 55 years, who has undertaken 4 years pre-service training and has completed 33 years actual pensionable service, may retire. Benefits would be paid with immediate effect in that instance and would be based on the actual pensionable service. I understand that the person in question, who will reach age 55 in early 2009, had completed 4 years pre-service training. Provided the person remains in pensionable service until the end of the 2008/09 school year, he will then fulfil the requirement for voluntary retirement under the 55/35 year rule as he will have in excess of 33 years reckonable service.

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. The person in question is free to apply now for cost-neutral early retirement.