Brendan Howlin (Wexford, Labour)

I cannot accept the amendment because it would delete the section and the net impact of that would be that there would be no fast accrual for those special services such as members of the Garda and the Permanent Defence Force and the normal scheme would apply to them. That is not what the Senator intends but it would be the effect of deleting the section. This is a special provision to allow for fast accrual and payment of pension on retirement early to those three categories, namely, the Garda Síochána, the Permanent Defence Force and fire service personnel.

We have had discussions with the trade union movement. It has a responsibility to advance the interests of its members. The purpose of the scheme is to make a fairer scheme generally. To put it bluntly, I cannot imagine anyone in the private sector giving such a Rolls Royce pension to anyone. Members of the Garda Síochána can retire at 55 years of age. A member of the Permanent Defence Force can retire at 50 years of age. One could be 40 years in receipt of a pension. Under this scheme everyone else in the public service will not be paid a pension until the age of 66, 67 or 68. It will be 68 by the time anyone will accrue a pension under the new scheme. Those people will have a pension from a much earlier age when they retire, rightly so.

Actuarially, to afford to pay a fast-accrual based pension in the way we calculate it from the age of 50 is regarded as an extremely good provision. Objectively, most people in the private sector would see that as a very fair provision for people on whom we depend, such as the Permanent Defence Force, the Garda Síochána and firefighters. It would not be fair to expect them to continue working until the age of 68 or 70, nor would it be fair to expect them to retire early and to have no entitlement to a pension until the normal pension age. We are making provision for them to accrue an earlier pension.

The Senator has given a lot of figures. I can give him the basis of the calculations. They are done very carefully. We have had detailed discussions with the trade union movement. These matters have been rehearsed before the Labour Court as well. On balance, we are satisfied that this strikes a balance. Taxpayers have to pay for all those pensions and we must retain public support for them. While I accept what the Senators are saying, I have engaged with the trade union movement – my officials have done so directly – and they understand that this is a fair system that will allow those special categories of public servant who are front line in the real sense to have a much more favourable pension entitlement than the general body of civil or public servants.