Notional Service is a scheme that allows serving teachers, serving special needs assistants, certain caretakers and certain clerical officers who will have less than 40 years pensionable service at retirement aged 60 or 65 (65 years of age only in the case of a new entrant and teachers who are not new entrants have an additional option to purchase to age 60) to purchase certain additional pensionable service.
The additional service purchased is treated as actual service in calculating pension and lump sum entitlements.
It is important to note that notional service purchased cannot be counted to reach the eligibility threshold for retirement under the 35/55 year rule.
Teachers, serving special needs assistants, certain caretakers and certain clerical officers are requested to familiarise themselves with department Circular 129/2006. Teachers should also consult the general information note: Purchase of Notional Service below.
0129/2006
Purchase of notional service for superannuation purposes
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Notional Service Purchase Scheme for Teachers – General Information
Guide to the provisions of the purchase of notional service scheme. Teachers must consult the relevant Circular 0129/2006 for the definitive rules.
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Primary, secondary, community or comprehensive school teachers who are members of the Teachers’ Superannuation Scheme, and who are serving teachers in a whole-time or CID position, and have a shortfall of 40 years service at retirement age 60 or 65, are eligible for this scheme.
Special needs assistants, certain caretakers, certain clerical officers who are members of the Superannuation Scheme and who are serving in a whole-time or CID position and have a shortfall of 40 years service at retirement age 60 or 65, are eligible for this scheme.
The maximum amount that may be purchased is the shortfall at retirement age; that is, if a teacher is retiring at age 60 with 35 years service, the maximum amount that can be purchased is 5 years.
If you start job sharing you will be credited with 182 days of service per year. You can use the notional scheme to purchase any shortfall in your pension service as a result of job sharing after you return to full time work or after 2 years of job sharing if you intend to job share on a long term basis.
The form NSQ1 is to be completed.
If you are already purchasing notional service and then go job sharing, you should notify the pensions division of the department by email, who will confirm that your deduction rates are correct.
Pension contributions for the duration of the career break may be paid through the purchase of notional service, either following a return to teaching or during the career break (by making arrangements prior to the commencement of the career break with the Pension Section of the department).
Please refer to the guide on the cost of purchasing notional service below.
Notional service may be purchased by two methods:
- by periodic deductions from salary up to age 60 or 65
- by lump sum payment - this option can be made once in any calendar year
The cost of notional service is specific to each application and is based on the actuarial tables as outlined in the departmental Circular 0129/2006.
The cost is dependent on the payment option chosen, on the age of the teacher at time of purchase, the salary of the teacher, whether he or she is a member of the Spouses’ and Children’s’ Scheme and his or her PRSI class. There are with some restrictions whereby notional service can only be purchased by lump sum. Please refer to the detailed information on the various rates contained in the notional service circular 0129/2006.
The following, by way of general examples, are costings by lump sum and periodic deductions to purchase one (1) year of notional service for persons who are members of the Spouses and Children’s Scheme.
The quotation listed, by way of a guide, is to illustrate to teachers the level of costing to purchase one (1) year and are not to be considered exact quotations for the purchase of notional service. Where more than one (1) year of notional service is being considered for purchase the guide figures should be multiplied by the number of years required.
| Age next birthday | Salary | PRSI Contribution Class | Lump sum payment retiring at aged 60 | Lump sum payment retiring at aged 65 | Fortnightly gross (cost) deductions retiring at age 60 | Fortnightly gross (cost) deductions retiring at age 65 |
| 50 | €50,000 | A | €12,650 | €12,450 | Subject to double the current rate of the Contributory old age pension which changes each year | Subject to double the current rate of the Contributory old age pension which changes each year |
| 55 | €55,000 | A | €13,300 | €12,210 | As above | As above |
| 60 | €55,000 | A | €14,740 | €12,815 | As above | As above |
| 65 | €60,000 | A | n/a | €14,220 | n/a | As above |
| 50 | €50,000 | D | €18,250 | €17,450 | €55.00 | €31.00 |
| 50 | €55,000 | D | €20,075 | €19,195 | €59.00 | €34.00 |
| 50 | €60,000 | D | €21,900 | €20,940 | €65.00 | €37.00 |
| 50 | €70,000 | D | €25,550 | €24,430 | €75.00 | €43.00 |
| 55 | €50,000 | D | €16,300 | €15,900 | €110.00 | €47.00 |
| 55 | €55,000 | D | €17,930 | €17,490 | €120.00 | €52.00 |
| 55 | €60,000 | D | €19,560 | €19,080 | €132.00 | €57.00 |
| 55 | €70,000 | D | €22,820 | €22,260 | €155.00 | €65.00 |
| 56 | €50,000 | D | €15,950 | €15,550 | €138.00 | €53.00 |
| 56 | €55,000 | D | €17,545 | €17,105 | €152.00 | €58.00 |
| 56 | €60,000 | D | €19,140 | €18,660 | €165.00 | €63.00 |
| 56 | €70,000 | D | €22,330 | €21,770 | €193.00 | €74.00 |
The cost of notional service is specific to each application and is based on the actuarial tables as outlined in the departmental Circular 0129/2006.
The cost is dependent on the payment option chosen, on the age of the non teaching staff member at time of purchase, the salary of the non teaching staff member, whether he or she is a member of the Spouses’ and Children’s’ Scheme and his or her PRSI class. There are with some restrictions whereby notional service can only be purchased by lump sum. Please refer to the detailed information on the various rates contained in the notional service circular 0129/2006.
Non teaching staff are advised that periodic contributions rates for integrated staff on Full PRSI (class “ A”) are levied on both net**pay and pay while lump sum contributions rate for integrated staff on full PRSI (Class A) are levied on pay only.
Net pay = gross pay less twice the rate of contributory old age pension payable at the maximum rate to a person with no adult dependents or qualified children.
The employment records and pensionable service records for all government departments and offices are now held centrally by PeoplePoint Ltd, HR and Pensions Shared Services, Belfield Office Park, Beech Hill Road, Clonskeagh, Dublin 4.
The transfer request form Confirmation of Public Sector Service form should be competed and forwarded to PeoplePoint.
To apply for a notional service quotation, please complete the Form NSQ1:
Application Form NSQ1 for Teachers and Non-Teaching Staff
Application for a quotation to purchase service under the Notional Service Purchase Scheme
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Return to:
Pensions Unit, Department of Education, Cornamaddy, Athlone, Co Westmeath, N37X659
- if you are in the Single Pension Scheme (employed after 1 January 2013) you cannot purchase notional service
- if you are a new entrant (anyone who commenced after 1 April 2004) you can only purchase to age 65
- all quotations for notional service are based from your next birth date