Occupational Supplementary Pensions - Teachers and non-teaching staff
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From: Department of Education
- Published on: 9 November 2020
- Last updated on: 15 April 2025
- What is an Occupational Supplementary Pension (OSP)
- When is an Occupational Supplementary Pension is payable
- Rate of payment
- Information Note and Application form for OSP
You may be able to get an Occupational Supplementary Pension if you paid Class A PRSI during your employment.
What is an Occupational Supplementary Pension (OSP)
- Occupational Supplementary Pension is an amount of money payable to retirees in accordance with the terms of teachers’/non-teaching staff (NTS) pension schemes. It is paid in addition to the occupational pension where a teacher/NTS has paid co-ordinated pension contributions as follows:
- full rate PRSI (Class A) contributions while in pensionable service, and/or
- purchased service, for example: part time, substitute, unqualified service or whole time service before becoming a member of the occupational pension scheme
Co-ordinated pension contributions / co-ordination
Co-ordination is a common feature of pension schemes. Where employees pay full rate PRSI (Class A), a reduced pension contribution is paid and the amount of occupational pension is reduced accordingly on the basis that the reduction is balanced out by the Social Welfare benefits payable.
Please refer to the Department of Social Protection website for information on PRSI.
When is an Occupational Supplementary Pension is payable
Prior to reaching state pension age an OSP is payable where the retiree:
• is retired and have reached minimum pension age, or retired on grounds of ill-health,
• is a member of a pre-existing public service pension scheme and the pension benefits payable in respect of such membership have been integrated with the social insurance system,
• is not engaged in full-time paid employment,
• is in receipt of an overall pension package (occupational pension and relevant benefits, where appropriate) that is less than the occupational pension which would have been payable, had the occupational pension not been integrated,
Where the individual is:
Below the State Pension age, they must
(i) not have claimed any social insurance benefit or
(ii) where a social insurance benefit has been claimed, have qualified for a benefit at less than the State Contributory Pension.
At or above the State Pension age, they must not qualify for relevant benefits, or fail to qualify for any relevant benefits at the maximum rate of the State Contributory Pension
•The individual’s failure to qualify must be due to causes outside of their control.
In the case of cost neutral early retirement pension, Supplementary Pension is not payable before age 60 or age 65 in the case of a New Entrant.
Rate of payment
Occupational Supplementary Pension is equal to the difference between the full occupational pension (that is, the pension which would be payable if co-ordination had not applied), and the combined total of:
• the actual occupational pension payable and
• the personal rate of Social Welfare benefits payable
Part-time entitlements
The payment of an OSP should not cease, or be refused completely, where a pensioner takes up part-time employment. It is appropriate to calculate the amount of OSP payable on a pro-rata basis.
How OSP is paid
With effect from 01st August 2024 a pensioner wishing to claim the OSP will be required to submit an initial application to pensions unit and thereafter, will be required to submit a signed declaration annually for every year they intend to apply in order for the payment of Supplementary Pension to be considered. It is usual for such application to be made at retirement or when eligibility for payment of Supplementary Pension is attained.
Conditions
Where Supplementary Pension is awarded, you must notify the Pension Unit of the Department of Education when you:
a) obtain employment
b) become liable as a self-employed person for the payment of PRSI contributions
c) become eligible for payment of new/additional Social Welfare benefits
Pensioners wishing to claim an OSP, on or after reaching State Pension age, will be required to sign a declaration at the time of making the application and thereafter, if requested by the Pensions Unit of the Department of Education
Information Note and Application form for OSP
Please see Information Note on supplementary pensions below. This document is a guide. It does not purport to be a legal interpretation or to be exhaustive.
