Jonathan O'Brien (Cork North Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

13. To ask the Minister for Public Expenditure and Reform the number of retirements from the public service envisaged to take place by the end of the new extended grace period of June 2015; the expected consequences for public service delivery; and if he will make a statement on the matter. [16772/14]

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

Section 9 of the Financial Emergency Measures in the Public Interest Act 2013 provides that persons retiring before 31 August 2014, or a later date made by Order under the Act, will be entitled to have their pensions calculated as if the pay reduction and any increment pause or freeze had not applied to them. As the Deputy is aware, I have decided to extend the grace period from 31 August 2014 to 30 June 2015.

It is only when public servants declare their intentions to retire in line with the normal notice periods provided for retirements that an indication of the numbers retiring can be determined.  However, I note that the pay reductions provided for under the 2013 Act applied to only 13% of public servants, those on salary rates of greater than €65,000. Those public servants who choose to retire will have applied to their pension the public service pension reduction which was brought in under the 2010 Financial Emergency legislation and amended in 2013.  For that reason, it can be anticipated that only those within that cohort who are above or near minimum retirement age and have significant service accrued  will likely avail of the provision, and therefore the potential additional impact from the grace period on retirements  in 2015 will be relatively limited in terms of total numbers.

In order to ensure that the impact would be effectively managed across all sectors, the approach I have taken in extending the grace period will assist sectoral management in the implementation of workforce planning measures, in order to maintain service delivery standards and minimise any potential adverse affect on services that may arise.   In line with the on going  management of all retirements within the public service, those public servants electing to retire and avail of the grace period will be required to give appropriate notice.