David Cullinane (Sinn Fein)

We have received many representations from trade unions and other groups on section 26. It is important that we highlight the concerns expressed to us. This section deals with those in the fast accrual group, namely, gardaí, prison officers and firefighters. As the Minister will be aware, those in this group are obliged, for practical reasons, to retire at an earlier age than others. There are no 65, 66 or 67 year old firefighters, which makes sense. The accrual mechanism in the legislation unduly reduces the benefits of those in this group in comparison with those included in the standard accrual group. I recently received representations from SIPTU and a number of other trade unions on this issue. The workers to whom I refer have genuine concerns.

Those in the fast accrual group in the public service pension scheme are obliged to retire at the age of 55 years. In order to do so, they must accrue pension entitlements at a faster rate than their counterparts in the standard accrual group. Prior to the introduction of the Bill, trade unions were given to understand that while the new scheme would be considerably less attractive than the current one, it would replicate its terms and that those in the fast accrual group would only be obliged to absorb the same hit as their counterparts in the standard group. Unfortunately, this has not proved to be the case. As matters stand, those in the fast accrual group can earn 40 years' benefits for 30 years' service and this must be maintained. The accrual rate applying to the pension and lump sum needs to be adjusted in order to reflect the current position.

We are opposed to the section because the Minister and his Department need to return to the drawing board on this matter. That is also the view of SIPTU and other organisations which, I am sure, have also lobbied the Minister. The departmental officials who were tasked with drafting this legislation should undertake to develop a formula that will replicate that which applies under the current scheme. Those in the fast accrual group are obliged to retire at 55 years and it must be recognised that the length of their service will be limited by virtue of this fact. If the objective of the section is to maintain the differential in respect of the terms which currently apply with regard to 40 years' standard benefits earned over 30 years, the trade unions have suggested the following approach: an accrual rate up to 3.74 times the State pension would be 0.7% at a standard plus 33%; an accrual rate over 3.74 times the State pension would be 1.67% at a standard plus 33%; and a lump sum accrual at a rate of 5% at a standard plus 33%. This is just one proposal that has been made by the trade unions and I am sure the Minister has been lobbied by them on this matter.

This issue is important to the category of workers affected and we are of the view that the Minister should re-examine the position on section 26. We must ensure we get the legislation right. Despite the rancour associated with the debate up to now and the fundamental difficulties we have with the Bill, we recognise that he and the Government have moved a great deal further than their predecessors. We have differences of opinion with trade unions on average earnings, for example, and linkages with the consumer price index. We have taken a pragmatic view and accepted that much of what the Minister is doing is correct. It is common sense and we support it. Trade unions do not support all of what the Minister is doing. That is fair enough. They are entitled to their view but we as legislators must adopt the positions we believe are correct for all citizens and we have done that. This is one of the areas on which the trade unions have a genuine concern that should be examined by the Minister. In that context, we will oppose the section. I await the response of the Minister.