Brendan Howlin (Wexford, Labour)
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I was about to thank the Chairman and members of the select sub-committee but I will thank the Chairman and Deputy Sean Fleming as no other members are present.

I am here to present a proposal for a net Supplementary Estimate of €16.77 million, gross €37 million, in respect of Vote 12 - Superannuation and Retired Allowances, and a net Supplementary Estimate of €400,000, gross €900,000, in respect of the Public Appointments Service. The Supplementary Estimate in respect of the superannuation Vote will bring the total 2015 Estimate for the Vote to €515 million gross and €386.7 million net. This compares with a final outturn in 2014 of €473.9 million gross and €368.7 net. The Supplementary Estimate arises mainly from approximately 250 more retirements than were forecast for the year under the established scheme. There are also balances payable to people who retired in 2009 under the previous Government's early retirement scheme.

Pensions and lump sums paid to members of the pension scheme for established civil servants make up just under 90% of total gross expenditure on the superannuation and retired allowances Vote. As such, the main driver of the annual cost is the number of established civil servants who retire in the year. However, it is particularly difficult to estimate the number of retirements from one year to the next for the following reasons. The majority of established civil servants may choose to retire within a five-year window between the ages of 60 and 65 years. In addition, a number of people under the age of 60 retire each year under the cost neutral early retirement scheme or are retired on grounds of ill health. Each year, a number of former employees become eligible to claim a preserved pension entitlement, in other words, these individuals retire early but reach the appropriate retirement age in a different year and become eligible for a lump sum payment in that year. The number of cessations of pensions also varies from year to year. I love this euphemism, which is a way of describing those who are no longer on the planet and, therefore, unable to claim their pension.