Paul Kehoe (Wexford, Fine Gael) | Oireachtas source

I take it that the Deputy is referring to the absence of the concept of "supplementary pensions" from the provisions of the single public service pension scheme.

The occupational pension scheme terms of post-1 January 2013 new entrants to the public service, including the PDF, are governed by the Public Service Pensions (Single Scheme and Other Provisions) Act 2012. All first-time new entrants to pensionable public service employment on or after that date are members of the single scheme. Under the 2012 Act, overall statutory responsibility for the single scheme pension terms and rules rests with the Minister for Public Expenditure and Reform.

The single scheme was one of the key structural fiscal reform commitments agreed by Government with the EU and the IMF in 2010 under the programme of financial support for Ireland. In the context of the Government's decision to introduce the single scheme, a stated primary objective is to help significantly reduce the cost of public service pensions in the long term through reform of the public service pension system.

The new scheme will be fairer, particularly for those on low and moderate earnings and, above all, the public service will be better able to manage the costs associated with the demographic and other changes which are under way. These policy objectives and the underlying rationale for them were well publicised in advance of the enactment of the 2012 Act.

The terms and rules of the single scheme, however, make no provision for the concept or award of supplementary pensions for any new entrants joining any public service group on or after 1 January 2013. This position has been confirmed to the PDF representative associations.

However, there are many other established features of the pre-1 January 2013 public service occupational pension schemes that have been discontinued or fundamentally changed under the single scheme. Among the most notable of these changes is the introduction of career-average pension accrual under the single scheme. This is in place of the more costly final salary pension accrual applicable in the earlier "pre-existing" public service pension schemes.

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I should also mention that, notwithstanding the distinguishing features of the single scheme, members of the PDF in that scheme retain the minimum pension age of 50 to reflect operational needs, as already applies to new entrant military personnel recruited since April 2004. Importantly, the single scheme also retains "fast accrual" pension terms for groups such as the Defence Forces, given that for operational and HR policy reasons they are required to retire earlier than the norm, and on that account they retain early-paid pensions and accelerated pension accrual.

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