Teachers' Compensation Scheme 2014
On 11 July 2014 the PSPA made the Teachers’ Compensation Scheme 2014. The Scheme is now in force and will be laid before the October sitting of Tynwald for ratification. This scheme aligns the compensation for redundancy provisions for teachers and other individuals employed by the Department of Education and Children and who are members of, or eligible to be members of, the Teachers Superannuation Order 2011 with those in place for the majority of other Isle of Man Public Servants.
The Scheme firstly amends the legislation which applies to the Island the provisions of the English and Welsh Teachers Pensions Regulations and Teachers (Compensation for Redundancy and Premature Retirement) Regulations. Secondly, it amends the Public Sector Compensation Scheme 2013 to make those redundancy provisions available to teachers and other related staff employed by the Department of Education and Children.
These new arrangements also provide the opportunity for affected employees over the age of 50 to voluntarily exchange all or part of their redundancy payment in order to buy additional pensionable service in the Teachers’ Pension Scheme, in order to increase their pension benefits.
Further details, including a formal response to the consultation on the Scheme can be found below.
A copy of the Teachers' Compensation Scheme 2014 and some useful Frequently Asked Questions can be found below. Should you require any further information on this Scheme then please contact your employer.
- Teachers’ Compensation Scheme 2014 – Consultation Response Document
- Teachers’ Compensation Scheme 2014
- Frequently Asked Questions (FAQs) Teachers Compensation Scheme
For the purposes of calculating an employee’s lump sum under this scheme, the Deemed Minimum of £25,000 will increase in April each year by the Isle of Man Retail Prices Index as published in March each year) in order to keep pace with inflation.
- Deemed Minimum 1 April 2014 is £25,725 (IOM RPI Feb 2014 2.9%).
- Deemed Minimum 1 April 2015 is £26,085 (IOM RPI Feb 2015 1.4%).