THE PENSION (TEACHERS) ACT 1947 AND RETIREMENT FROM THE TEACHING SERVICE

THE PENSION (TEACHERS) ACT OF 1947 Sets out the conditions under which a teacher may be granted a pension or pension benefits

Section 5 – (1) clearly states that “no teacher shall have an absolute right to compensation for past services or to pension or gratuity.

Subsection (2) is worthy of note thus, “Where it is established to the satisfaction of Governor General that a teacher has been guilty of:

Negligence

Irregularity

Misconduct

The pension or gratuity may be reduced or Altogether withheld

Circumstances under which pension may be granted:

Section 6 (1) No pension or gratuity shall be granted under this Act to any teacher except on his retirement from the teaching and unless

he has attained the age of fifty-five years or over;

(ii) In the case of transfer to other teaching service, he has attained the age at which he is permitted by the law or regulations of the teaching service in which he is last employed to retire on pension or gratuity, on any greater age, or

(iii) it is certified on medical evidence to the satisfaction of the Governor General, that is incapable by reason of any infirmity of mind or body of continuing efficiently in teaching Service and that such infirmity is likely to be permanent, or

(iv) in the case of teaching service in this island, on termination of employment in the public interest as provided in this Act

(v) On the abolition of his office, or (vi) On compulsory retirement for the purpose of facilitating improvement in the teaching service in which he is employed, by which greater efficiency or economy can be effected

Section 6 (2) For the avoidance of doubt it is declared that without prejudice to the right of any teacher to retire from the teaching service on attaining the age of fifty-five years or at any time thereafter, the normal age of retirement from teaching service shall be sixty years.

RETIREMENT IN THE PUBLIC INTEREST Section 7 (1) ‘If the Governor General is satisfied, having regard to the conditions of the teaching service, the usefulness of the teacher thereto and all the other circumstances of the case, that it is desirable in the public interest so to do, he may require any teacher in teaching service in this Island to retire from such teaching service.

APPLYING FOR A PENSION OR GRATUITY Where a teacher has ascertained the age of fifty-five years or over he may apply for pension benefits. However, on the teacher’s fifty-ninth birthday birthday the Ministry of Education will inform the teacher to make arrangements for retirement.

RELEVANT DOCUMENTS Letter of Election Application of advance Statutory declaration of birth

ROLE OF THE MINISTRY OF EDUCATION To establish a service record of the teacher to include: (i) The full name and the age of the teacher The date of the commencement and termination of every such appointment and the nature, salary and allowances in respect thereof.

All periods of leave, whether on full, half or no pay. ( Regulations 17 )

The teacher is required to sign service record in quadruplicate.

STAGE 2 Ministry of Education sends file to the Ministry of Finance where file is checked and a gratuity and reduced pension is established then sent to Accountant General’s Department for payment.

Stage 3 The file is sent to the Accountant General’s Department where the gratuity and pension benefits are calculated.

How to Calculate Gratuity and Reduced Pension Stage 4 How to Calculate Gratuity and Reduced Pension Steps 1. Add all annual pensionable emoluments 2. Ascertain number of months of pensionable service

Stage 4 cont’d 3. Divide number of months of pensionable service by 540 then multiply by total pensionable emolument Multiply pension figure by 3.125 to establish gratuity Multiply pension figure by 0.75 to ascertain annual pension Divide annual pension by 12 to arrive at the monthly pension

Pension Calculation Trained Teacher Graduate at the maximum of the scale with three seniority allowances and post of special responsibility three, and thirty-five years of service. Basic Salary 1,289,280 (w.e.f 1.04.09) Seniority 83,259 PSOR (3) 160,192.60 TOTAL 1,532,731.60

Finding Figure used to Calculate Pension Number of pensionable months 35 x 12= 420 months 420 ÷ 540 x highest annual emoluments = 1,192,124.40

Gratuity 1,192,124.40 x 3.125 = 3,725,388.70 Annual Pension Monthly Pension 894,093 ÷ 12 = 74,507.75

PENSIONS (PUBLIC SERVICE) ACT,2015 A DRAFT BILL

Implementation Date With effect from April 1,2016 ,all pensionable officers shall, by virtue of the provision of this Act ,become members of the Scheme and shall be required to contribute to the Fund.

Pension Fund 10 (1) Commencing as from such date as the Minister shall determine ,the Government shall pay into the Fund , in respect of each pensionable officer periodic contributions in such amounts and manner as may be determined by the Minister by order , subject to affirmative resolution of the House of Representative.

Pension Contribution 11(1) As a contribution towards the pensions , gratuities and other allowance provided for under this Act, there shall be deducted from the salary of a pensionable officer ,an amount of five percent of such salary.

Refund of Contribution 12 (1) A pensionable officer shall be eligible to receive a refund of his contributions paid into the Fund ,in any of the following circumstances – (a) on the abolition of the office of the pensionable officer where he has less than ten years service; (b) on the resignation of the pensionable officer from the service; (c) on the dismissal of the pensionable officer from the service.

Refund of Contribution (cont’d) 12 (4) Where a pensionable officer from whose pay deductions have been made by way of contributions to his pension ,gratuity or other allowance ,dies in circumstances where he has less than ten years service ,and no pension ,gratuity or allowance has been paid ,or is payable under this Act ,his legal personal representative shall be entitled to a refund of the amount of the deductions so made.

Normal Retirement Age 14(1) ------- the normal retirement age of a new years public officer shall be sixty-five

Early Retirement 15(1) …. A pensionable officer may be being an existing granted early retirement from the public service by the Governor General and be eligible to receive pension ,gratuity or other allowance if – (a) being an existing public officer ,he will ,during any of the months during the transition period …. attain the corresponding age specified

Early Retirement (b) he is a new public officer and has attained the age of sixty years ,or ( c ) on medical evidence to the satisfaction of the governor General ,he is incapable by reason of any infirmity of mind or body of discharging the duties of his office and that such infirmity is likely to be permanent.

Early Retirement (cont’d) 15(2) Where a pensionable officer is granted early retirement in the circumstances referred to above there shall be deducted from such pension ,gratuity or other allowance payable to the officer at that time ,an amount at the rate of one percent of his pension ,gratuity or other allowance for each year prior to the year in which the pensionable officer would have been eligible to take normal retirement (65)

Death Benefits 27 Where a pensionable officer dies in the Public Service the Governor General may grant to the legal personal representative of the officer ,a gratuity of an amount not exceeding either one year’s pensionable emoluments of the officer or his commuted pension ,gratuity ,if , any whichever is the greater.

Survivor’s Benefit 30 ‘benefit’ means any benefit payable to a relevant child , surviving spouse ,mother or father. ‘relevant child’ means – (a) a child of both spouses or (b) a child of one spouse who is accepted as one of the family by the other spouse.

Survivor’s Benefit (cont’d) ‘child’ includes an adopted child and a child of a void marriage ‘spouse’ includes---- (a) a single woman who has cohabited with a single man as if she were in law his wife ,for a period of not less than five years, (b) a single man who has cohabited with a single woman as if he were in law her husband for a period of not less than five years.

Questions and Comments

That’s A Wrap! Thank You