Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I propose to take Questions Nos. 15 and 40 together.

The Government agreed on 5 December 2017 that the compulsory retirement age of public servants recruited before 1 April 2004 should be increased to age 70. This group of public servants currently has a compulsory retirement age of 65. Primary legislation will be required for the changes to be implemented. In approving the proposals, the Government also approved the general scheme of a Bill to give effect to the changes.

In approving the proposals, the Government also approved the general scheme of a Bill to give effect to the changes. The Attorney General’s office has been asked to give priority to the drafting of this legislation so that the new compulsory retirement age for pre-2004 public servants will become effective as soon as possible. The new compulsory retirement age will only apply to pre-2004 public servants who reach the age of 65 following the commencement of the new legislation.

In the meantime, the Government has approved some limited interim arrangements to apply in the period between the Government decision and the commencement of the necessary legislation. The interim arrangements, through retirement and rehire, will allow pre-2004 public servants who reach the age of 65 in that period to remain in employment only until they reach the age of eligibility for the State contributory pension, which is currently 66 years of age. The interim arrangements will not apply in the case of public servants who, at the age of 65, were facilitated by their employer to remain at work until age 66, as they will have already reached the age of eligibility for the State contributory pension, which is currently 66 years of age and will remain at that age until 2021.

The policy across the public service is that where a retired employee is rehired they are paid at the minimum point of the relevant scale rather than at the pay point they had reached when they retired. This practice is continuing in the context of the interim arrangements. We consulted all the unions on this matter, and its introduction has been broadly welcomed by those who work in the public service and those who represent them.

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