Mairéad Farrell (Galway West, Sinn Fein)
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15. To ask the Minister for Public Expenditure and Reform if he will provide an update on his scoping exercise for the overpayment of civil servants and Ministers; and if he will make a statement on the matter. [39499/25]

Mairéad Farrell (Galway West, Sinn Fein)
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My question relates to the scoping exercise the Minister and his Department are undertaking on the overpayment of pensions to civil servants and Ministers. What is the status of that, what has been identified to date and what can he tell us about it?

Jack Chambers (Dublin West, Fianna Fail)
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As the Deputy said, she is referring to delay in addressing taxes due on retirement and anomalies in deductions of various pension contributions. A review in relation to Ministers who may have been impacted regarding contributions and additional superannuation contributions, ASCs, has been completed. Those identified are being contacted and engagement is ongoing. I understand from the National Shared Services Office, NSSO, that many recoupment plans are now in place. A review of retirees liable for chargeable excess tax and withholding tax is nearing completion and the NSSO has been in contact with individuals impacted. That work is progressing.

My Department and the NSSO have put new measures and controls in place to ensure these matters do not reoccur. Additionally, I have asked the chair of the NSSO advisory board to commission forthwith an external audit for the board and my Department of the systems and processes in the NSSO for fulfilling its role and responsibilities. The terms of reference have been finalised in consultation with me and my Department. The clear evidence of errors which has recently come to light emphasises the need to validate and provide reassurance regarding whether the NSSO is carrying out its functions in full compliance with public policy and statutory requirements. My Department is actively engaging with the chair to get this external audit up and running as a matter of urgency.

Work is ongoing with the Office of Government Procurement on a supplementary request for tender, which is expected to issue to the relevant framework members this week, ending 18 July 2025. The procurement process will involve clarification questions to be received within 21 days, with 30 days for tenders to be submitted. Work will commence following the relevant evaluation and contract negotiation process. I expect this external audit to be expedited with all due speed and to be completed as soon as practically possible. The external audit will be submitted to the chair of the board and my Department. Following that audit, I will brief the Government on the findings as soon as they are available.

Mairéad Farrell (Galway West, Sinn Fein)
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People are quite worried about this. We are seeing reports that one civil servant was apparently overpaid by €280,000. The 19 former and existing senior civil servants received overpayments worth €1.4 million. I hope measures are being put in place to make sure this does not happen again. The fact that it happened in the first place is shocking. When I raised it with the Minister at a committee he said he had no concerns about recouping the money. However, when his Department was in front of the Committee of Public Accounts last week it did not seem to be certain of the timeline. It is my understanding that it was pointed out that some of these people will have 20 years to repay the money, which is a very long time. I am concerned that we will not be able to recoup all this money. This has been a major blunder.

Jack Chambers (Dublin West, Fianna Fail)
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Recruitment plans around chargeable excess tax and pension contributions are two separate issues. I agree that what happened is unacceptable. That is why we need a full external audit and that will happen.

If someone who has worked in the public service is liable for chargeable excess tax, they have 20 years on a normal basis to spread that liability once they retire. For example, if someone is retired for two years, they have the remaining 18 years to pay that liability of chargeable excess tax if it has not been paid or they have not agreed a plan to pay it over those 18 years. That is within the existing rules. The issue is when that liability is not paid or is not agreed to be spread over a particular period. The work the NSSO is doing with individuals affected is to ensure they pay the liability at the point of retirement or have a plan in place to pay it over the remaining period in accordance with the rules and procedures that exist for the public service.

On pensions contributions, the NSSO is working with anyone who is liable to ensure such contributions are made in terms of recruitment plans. Separately, it is examining the wider group impacted. There might be old payments, particularly for those in a work-sharing pattern. It is assessing that at the moment.

Mairéad Farrell (Galway West, Sinn Fein)
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It is deeply concerning for most people that this is where it is. When does the Minister expect to have an outcome? Has he been able to identity exactly how this occurred? I do not mean any one person should be blamed for something like this but there must have been some system failures as well. Has the Minister got to the bottom of that? Does he expect that to come out of the report? When does he expect the report to be in the public domain?

The Minister will be acutely aware, as he prepares for the budget, that many people are struggling with the cost of living. When you do your weekly shop, the difference every week on the same bundle of goods is amazing. There is a huge impact. When people see this kind of thing, it frustrates them. Let us be frank about that. It is important this never happens again and that we have clear outcomes from the review.

Jack Chambers (Dublin West, Fianna Fail)
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The external audit will be important in assessing the wider systems processes and compliance with public policy and with the statutory position the NSSO exists within. That work will commence and be completed as soon as practically possible. The tender process is ongoing with this audit for the NSSO.

As part of budgetary preparations, we are being clear we want to make permanent, sustained and sustainable changes in the context of budget 2026 to improve public services and living standards and make a difference, particularly targeting supports at families that need them. That is the wider context for budget 2026, with broader economic uncertainty facing the country. That work is ongoing with the Minister, Deputy Donohoe, in preparation for the summer economic statement. There will be engagement with all Ministers on what is possible in advance of the budget.