Dáil debates

Thursday, 21 June 2012

Topical Issue Debate

Pension Provisions

3:00 pm

Photo of Brendan  RyanBrendan Ryan (Dublin North, Labour)
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I thank the Ceann Comhairle for affording me an opportunity to raise this important issue, namely, the need for the Health Service Executive to tackle the backlog in processing pension entitlements for 1,888 low paid, part-time former health board workers whose pension entitlements are integrated with social welfare payments. The change in the way in which the service and remuneration of these workers is to be reckoned for pension calculation purposes was announced in Circular 20/2005 entitled, Public Service Pension Reform: Revised Arrangements for Part-time Public Servants, which was issued seven years ago. Having pursued this matter since 2005, I am extremely frustrated that little progress has been made and it was for this reason that I felt compelled to take the matter to the floor of the House and seek commitments directly from the Minister. Unfortunately, he is not present but I await his response on the matter.

The change announced in the circular would result in a difference in pension benefit and contribution level for low paid, part-time HSE workers. This would come in the form of integration of benefits from full to pro rata integrations for the pensions of part-time public servants. The resultant changes would result in an increase in a weekly pension of between €5 and €70, depending on individual circumstances. I am sure the Minister will agree that given the current economic hardships facing pensioners, any increase would make a massive difference to their quality of life. Unfortunately, the retrospective element of this circular has not been fully implemented and backlogs remain in many of the former health board regions.

The former Eastern Health Board region, including Dublin, Western Health Board region and Midland Health Board region have yet to clear their backlogs, with the result that 1,888 pensioners are awaiting changes to increase their pensions. I understand from previous responses to parliamentary questions I have submitted on this matter that processing these changes is a substantial piece of work and resources within the Department are stretched. However, changes for low paid pensioners appear to be constantly placed bottom of the HSE's priority list. This should not be the case as it is grossly unfair.

Low income pensioners are among the most vulnerable in society at this time. Older people must be a priority and I ask that, if necessary, extra resources be made available to clear the backlogs associated with the circular. Having waited for seven years, it is time something was done. Will the Minister provide a guarantee that priority will be given to clearing the backlogs as soon as possible and ensuring low income pensioners receive their entitlements at the earliest possible time?

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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I thank Deputy Brendan Ryan for raising this important issue, which I am taking on behalf of the Minister for Health, Deputy James Reilly. I appreciate that the retirees concerned have been waiting for a considerable period for clarity on their full pension entitlements.

In July 2005, the Department of Finance issued a circular to public service employers notifying them of a change in the method of calculating pensions of former employees whose pension entitlements are integrated with social welfare benefits. This had the result of generally improving the pension paid to lower paid workers. The Health Service Executive has confirmed that all eligible staff who retired since the circular came into effect have had their pensions calculated in accordance with the arrangements introduced in 2005. However, as the Deputy stated, the cases of a cohort of staff who had retired before the changes were introduced had to be reviewed to establish whether their pension entitlements needed to be revised. The HSE has been working to address this issue.

It is important to appreciate that, as with other areas of public administration, the health service pensions function has experienced a loss of staff in recent years as a result of retirements and the requirement to reduce the size and cost of the public service. Pensions administration is a complex area of work, requiring a considerable level of staff expertise and experience. For this reason, it can be difficult to supplement existing capacity in the short-term. Moreover, the workload in this area nationally has been much increased as a result, in particular, of the health service voluntary early retirement and voluntary redundancy schemes in 2010 and 2011, as well as approximately 4,700 retirements during the latter stages of the pensions grace period which expired in February 2012.

A concerted effort is being made to address the backlog in respect of staff who retired before the revised integration arrangements came into effect. This work is being undertaken at regional rather than central level and involves the systematic review of manual records. I understand the necessary recalculation has been fully implemented in the areas which previously constituted the north eastern, south eastern, southern and mid-western health boards. The pensions of more than 400 pensioners in the north west have been reviewed and the review in this area will shortly be complete. Arising from this work, approximately 300 pensioners will have increased pensions paid in July 2012. This will come as good news to the individuals affected.

Work has commenced in the west and east - two areas specifically referred to by Deputy Ryan - with a view to completing this task by the fourth quarter of the year. Particular resource issues have arisen in respect of pensions processing capacity in the midlands and the HSE is working to put in place additional supports to address the backlog in this area. I understand the concerns expressed by Deputy Ryan with regard to areas where the matter remains unresolved. The Minister assures the House that the HSE is making all possible efforts to bring this long-standing issue to a satisfactory conclusion.

Photo of Brendan  RyanBrendan Ryan (Dublin North, Labour)
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While I understand the constraints facing the HSE superannuation section and the loss of staff to the organisation in recent times, this issue first arose in 2005. We could accept the HSE's excuse if the issue had arisen only recently but it has been ongoing for such a long time that no excuse is acceptable. I ask that extra resources be made available to the relevant unit in order that it can process the backlogs as soon as possible.

This issue is being addressed on a regional basis and certain regions, including the former North Eastern Health Board, South Eastern Health Board, Southern Health Board and Mid-Western Health Board areas, have cleared their backlogs. This demonstrates that some regions have given it the priority it deserves and completed the work required within a seven year timeframe. It is not unreasonable to ask that the remaining regions bring some urgency to processing their backlogs in light of the time that has passed since the circular was released.

In the final analysis we are dealing with pensioners who worked in low paid jobs and do not have Rolls Royce pension pots to live on. With the economic challenges biting all in our society, pensioners are especially vulnerable. Any increase in a pensioner's income would go a long way. It might mean an extra bit of food in the fridge, or coal for the fire. I ask the Minister to make a priority of clearing these backlogs and ensure these pensioners receive what they are entitled to and that this is done urgently.

The other important point to make is that many of the people who are entitled to this have since died. That is shocking.

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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I will certainly convey all the points made to the Minister. The Deputy raised the possibility of getting extra staff to replace the outgoing staff. I understand that this work is quite technical and that it takes a while to develop the necessary expertise, so it is not just a matter of transferring people across to do the work. They have to be trained appropriately. The HSE East and the HSE West are aiming to have the backlog cleared by the end of the autumn. The midlands is probably the biggest problem area.