Seán Fleming (Laois-Offaly, Fianna Fail)
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Question 632: To ask the Tánaiste and Minister for Education and Skills the number of retired teachers who are in receipt of a supplementary pension in addition to their retirement pension due to their gross annual rate of retirement pension being less than their gross annual rate of retirement pension would have been if full superannuation had been awarded in respect of all their pensionable service which arises in cases when teachers may have had a break in service, mainly female teachers for family reasons and were appointed after this break to a pensionable post after 6 April 1995 when Class A rate of PRSI was deducted; the number of male and female retired teachers who are in receipt of such a supplementary pension; if she will comment on the position that if a person in receipt of this supplementary pension is employed as a substitute teacher for even one day will lose their supplementary pension for a full year whereas this does not apply to persons who did not have a break in service and that it is mainly retired female teachers who are affected by this situation; if she will examine this to see if the loss in the supplementary pension can be based on the number of substitute teaching days worked;her views in relation to the way this primarily impacts on retired female teachers; and if she will make a statement on the matter. [30943/10]

Mary Coughlan (Donegal South West, Fianna Fail)
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On 6 July 2010 a total of 18,932 retired primary, secondary, community and comprehensive school teachers were in receipt of pension from my Department, of which 12,746 were female and 6,186 were male. Of that total 2,214 were in receipt of a supplementary pension of which 1,328 were female and 886 were male. Traditionally teachers who were members of an occupational superannuation scheme paid PRSI at a modified rate. Such teachers were insured under the social welfare code for a very limited range of benefits, and generally would not qualify for State Pension (Transitional) or State Pension (Contributory). These teachers paid superannuation contributions on their gross pensionable pay and their occupational pension was determined by reference to that pay at retirement.

In 1995 amended regulations were introduced which provided that the modified rate of social insurance would no longer apply in the case of many categories of public servants including teachers appointed on or after 6 April 1995 for the first time or for those who return to employment after that date having previously resigned or retired. It should be noted that periods of approved leave of absence taken by persons who were in service prior to 6 April 1995 (who have otherwise unbroken service) do not constitute a break in service for the purposes of the social welfare regulations. Teachers to whom the amended regulations apply are covered for the full range of social insurance benefits.

A teacher who is subject to full rate PRSI will, subject to satisfying the necessary eligibility criteria, qualify for the full range of social welfare benefits including State Pension (Transitional) or State Pension (Contributory). Such teachers pay superannuation scheme contributions on a lower rate of salary to take account of the fact that their employer, by virtue of paying employers PRSI, has contributed to their social welfare benefits. It is common practice in superannuation schemes in both the private and public sector to take account of the fact that the employer has contributed for social welfare benefits. Correspondingly the occupational pension is based on the pay on which the contributions were based and is lower than the pension payable to a teacher who did not pay PRSI at the full rate.

The occupational pension scheme provides for the payment of a supplementary pension in specific instances. Supplementary pension is payable in respect of periods during which the retired teacher is not employed in any capacity which involves the payment of social insurance contributions and due to circumstances outside his or her own control, either fails to qualify for Social Insurance Benefits, or, qualifies for such benefits at less than the maximum rate of State Pension (Contributory) payable to a single person. The rate of supplementary pension is calculated as the difference between the total of occupational pension and State benefit in payment and the occupational pension payable had the teacher been insured at the modified rate.

As mentioned above, employment precludes the payment of a supplementary pension. Where a person who, having retired with an occupational pension, returns to teaching, the supplementary pension is not payable for the duration of such employment. In general supplementary pension can resume on cessation of the further employment provided that the person satisfies the other conditions for payment i.e. does not qualify for social welfare benefit of such amount as would, when added to the occupational pension, equal the pension payable if integration had not applied.