Schools face early retirement surge as teachers flee taxes [independent.ie]
- Published: 05 May 2009
Source: independent.ie
By Katherine Donnelly
Tuesday May 05 2009
Schools are bracing themselves for a surge in early retirements as teachers try to avoid costly Exchequer attacks on their pay packets and pensions.
The Department of Education has confirmed that there has been an increase in interest from teachers about their retirement options compared with previous years.
The department has not put figures on the rise but sources say officials have been swamped by enquiries.
Officials said it was too early to know whether the deluge of enquiries would be followed by retirements in August.
Teachers are required to give three months' notice of retirement, and the end of May is the deadline for applications from those who want to opt out of teaching by September.
The belief is that that current interest will translate into departures. Teachers may work until they are 65, but may retire if they have 40 years of service, or after 35 years on a reduced pension.
The public service pension levy and higher health and income levies are slicing about 10pc off the average teacher's salary of €60,000.
Senior teachers close to retirement are facing a bigger hit because higher levies apply on salaries above €75,000.
Finance Minister Brian Lenihan has also warned that that retirement lump sums may become a target for taxation.
The levies have narrowed the gap between salary and pensions, and teachers who retire now will avoid both the pension levy and any future taxation of their lump sum.
A teacher on an average salary gets a lump sum of about €100,000 under the current tax-free regime.
Exodus
An exodus from teaching would be welcomed by teacher training graduates and non-permanent teachers, whose employment prospects have been hit by a squeeze on teacher recruitment.
The Government has announced a cap on teacher numbers and has increased class sizes. Teacher unions say about 1,000 jobs are set to disappear at primary level, and a further 1,000 at second-level as a result.
The Association of Secondary Teachers Ireland (ASTI) estimates that schools will lose an average of 2.6 teaching posts each from September.
ASTI's membership of 18,000 secondary teachers includes 3,000 temporary/part-time teachers.
The union is holding a conference later this month for non-permanent teachers, which will examine the issue of job opportunities, including the impact of the recent increase in the pupil-teacher ratio.
The conference will also cover contracts, rights and entitlements, what newly or recently appointed teachers can expect, and future employment trends in teaching.
ASTI general secretary John White attacked the "short-sighted" decision to increase class sizes. "Our economic recovery depends upon young people having access to quality education in adequately staffed schools," he said.
"Squeezing recently qualified, talented, and motivated second-level teachers out of the education service represents the squandering of a national resource," he added.
"It will damage young people's education and hinder Ireland's ability to recover from recession."
- Katherine Donnelly
