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Labour Court recommends retirement lump sum formula for 3,500 school staff

By Orla Quinn

Historic decision · Decision date:

Place: no local area assigned from the source.

The Labour Court recommended an ex-gratia retirement lump sum for school secretaries and caretakers aged 40 or over when they accept the recommendation, to address a gap in pension entitlements. The recommendation was dated 15 July 2026.

The dispute between the Department Of Education & Youth and 3,500 School Secretaries & Caretakers, represented by FORSA, concerned whether proposed pension arrangements would provide comparable benefits. FORSA said Auto Enrolment was less valuable than the Single Public Service Pension Scheme. The Department argued that the State Contributory Pension combined with MyFutureFund would provide comparable entitlements.

A comparison for a 56-year-old showed the proposed arrangement would provide a lump sum €4,299 lower and an annual pension €788 lower; the difference over ten years was €12,179. The Court recommended a formula based on four weeks’ full-time equivalent salary, capped at €600 a week, multiplied by 10.5 years, with a €3,000 floor and €20,000 ceiling. The amount is adjusted for hours and years worked and payable at retirement at or after age 66. The Court said the formula would provide comparable entitlements for the identified staff.

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