Labour Court recommends extra lump sum retirement payment for school secretaries and caretakers
by Hannah Deasy
 

Last Monday 20th July Fórsa released details of a significant Labour Court recommendation on pension arrangements for school secretaries and caretakers, describing it as a major step towards addressing a long-standing inequity affecting thousands of workers. 

  

Fórsa’s head of education Andy Pike said the recommendation represented “a very significant development” in a dispute that has persisted for decades. 

  

“This is the first time a clear and workable pathway has been set out to address the historic exclusion of school secretaries and caretakers from comparable pension arrangements. It has the potential to bring an end to more than forty years of inequality for a workforce that has been essential to the functioning of our schools,” he said. 

 

In the coming weeks the union will release a ‘pensions modeller tool’ that members can use to understand who the Court’s recommendation would impact their own pension. The tool has been developed by actuarial analysts engaged by the union.  

 

The Labour Court’s recommendation proposes a model combining the State Contributory Pension (SCP) and the new auto-enrolment system, MyFutureFund, with an additional lump sum payment at retirement. The payment, referred to as a gratuity, is designed to bridge the identified gap with comparable SPC and Single Public Service Pension Scheme outcomes. 

  

In the recommendation the Labour Court proposed a system where staff aged 40 and over at the point of acceptance would receive a retirement lump sum, calculated and payable on retirement from age 66, using a defined formula:  

  • Four weeks’ full-time equivalent salary (subject to the statutory weekly cap, currently €600).
  • Multiplied by up to 10.5 years of service between 1st May 2015 and 31st December 2025.
  • Subject to a ceiling of €20,000 and a floor of €3,000, and applied on a pro-rata basis to part-time hours.

The Labour Court concluded that this approach, of combining the SCP, auto enrolment and an additional payment, would deliver pension outcomes comparable to those available under the Single Public Service Pension Scheme.  

 

Mr Pike explained that ultimately the Court has rejected the employers’ position that the auto-enrolment pension was comparable to, or better than, the public service scheme. 

  

He said: “They maintained that position throughout six conciliation meetings at the Workplace Relations Commission and throughout four Labour Court hearings. This recommendation recognises that a gap arises under current arrangements and provides for a targeted pension gratuity to help ensure outcomes are comparable,” he said. 

  

Andy said union representatives would now return to the WRC as soon as possible to finalise the details of other outstanding claims.  

 

These claims include the new school caretaker pay structure, increased sick and acute illness leave and improved bereavement leave. 

  

Andy explained: “In total five claims were submitted to the WRC prior to the strike action which took place last year. The claim regarding pensions was the only one referred to the Labour Court, which has now made its recommendation. So we must now resume negotiations on the other claims so that we have a full package to put to members in a ballot. 

 

“Once that last phase of the negotiations concludes, members will have the opportunity to fully assess the pensions recommendation and the outcomes on the other claims and the union will organise a ballot where members can decide if they accept or reject the proposals,” he concluded. 

 

Join a union that wins. Join Fórsa.

LikeLike (1) | Share