Oireachtas Joint and Select Committees

Thursday, 3 October 2013

Public Accounts Committee

2011 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 7 - Superannuation and Retired Allowances
Vote 42 - Office of the Minister for Public Expenditure and Reform
Chapter 6 - Financial Commitments under Public Private Partnerships
Chapter 12 - Vote Accounting
Chapter 13 - Procurement without a Competitive Process

11:50 am

Mr. Robert Watt:

There are a number of factors. It is very important here to note that the increase in pension costs was inevitable given when we recruited. The Civil Service expanded during the 1970s, so we always had this demographic bulge coming through. It is an increase that was coming anyway. It may be brought forward a bit because we had various initiatives to encourage people to retire earlier. So most of the cost that the Deputy sees reflected in the Vote now is the demographic impact of us expanding the system back when we did and people now reaching retirement age. In any given year there is a big element of it, which is the once-off payment - the gratuity payment. That can spike, as we have seen. Next year if we do not have anyone retiring - of course we will, but let us say we did not - then one would have a dramatic fall in that part of the Vote even though the ongoing payments would obviously have to be made.

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