Patrick O'Donovan (Limerick County, Fine Gael) | Oireachtas source

I thank the Senators for their wide-ranging support. It is important to point out that the main provisions of this Bill are to take the existing situation for those who reach 65 years and raise it to 70 years. That is the crux of it.

Senator Paddy Burke made a particular point. The issues that exist for those pre-65 years of age will the same issue for those over 65 years of age. We could have a situation whereby a public servant has accrued or paid for the maximum amount of 40 years of service but that person could be 62 years of age. That person will continue to pay into the pension until reaching 65 years of age. The same will apply under this legislation. There is nothing different other than the age level.

I will try to cover as many of the contributions made as possible. Senator Horkan asked about future increases to age. The proposed section 3A(2) states, "Subject to subsection (3), the Minister may, by order, prescribe an age, being higher than 70 years but not higher than 75 years, upon the attainment of which all relevant public servants shall, at the latest, retire." That has been put into the legislation as a safeguard in the event that another Minister in the future wishes to raise the ceiling. The idea is that we do not have to come back again.

Reference was made to the State pension, which is a matter for the Department of Employment Affairs and Social Protection and the Minister, Deputy Doherty. The Bill does not propose to make any changes to any aspect of pension legislation. That would be beyond the scope of the legislation. Obviously, the existing pension arrangements will continue.

Senator Paddy Burke also made a point in respect of job-sharing. It is a matter for each Department, public body or State agency to determine the need for job-sharing and the availability of skills and people who will be able to fit into certain categories and particular sets.This legislation does not in any way inhibit the carrying out of the practices relating to job-sharing and the existing arrangements will apply.

It is important to state that this measure is not compulsory. We will not make people continue to work until they are 70. This will be completely voluntary. People may have entered the public service late in life, for whatever reason. They may have decided, following a particular stage in their life and with their family reared, that they wanted to return to work. Currently, they must retire at age 65. If they are a couple of years short to attain the right to accrue a maximum pension, unfortunately, they cannot do that.

Members asked the reason for deciding on age 70. As I said in my earlier contribution, we are trying to make sure we harmonise the retirement age across the board, as far as practicable.

Some people might ask if there should even be a maximum retirement age. The Government's view is that there should be because we have to budget, provide certainty in respect of the numbers involved and be able to plan for the development of the public service. We have to know on an annual basis who will be in our services, the skill sets they will have and how we will manage recruitment. That is very important and I believe, on reflection, people will appreciate that.

This measure is also a reflection of the fact that people are healthier and are living longer. In terms of the skill sets and experience of those working in local authorities, State agencies or Departments, we need a mechanism that allows them the opportunity to continue to empower younger people coming into the service. Lifting that ceiling will give them an opportunity to impart some of their knowledge, rather than walking out the door with it, so to speak.

Regarding people who have retired, and I appreciate there will be a greater level of discussion on that on Committee and Report Stages next week, an interim arrangement was made which was welcomed at the time. The expectation had been that there would not be an interim arrangement, that we would go straight down the legislative route and that a cohort of people would have fallen between the cracks without such an interim arrangement. We did not do that and made provision for that. However, it is important to point out that we are keeping the existing system for people who retire and are rehired. We had to take cognisance of those who have left the service, got their lump sums and are on pensions, and the budgetary impact of that. We had to be fair also to people already in that arrangement and follow the existing retire and rehire provisions.

This is important legislation. We are very anxious to try to have it passed in this House and taken in the Dáil as quickly as possible. All of us have been contacted by people about this issue. There are people in this House, in Departments and across the country who are very anxious to see it enacted so the sooner we can do that, the better.

I welcome the cross-party support for the Bill. I am aware issues will be raised on Committee and Report Stages but given the level of consultation that has taken place and the welcome responses from employee representatives, I believe the Bill will capture many of the concerns expressed. It is progressive legislation that reflects the position the country is in today but, as Senator Horkan stated, there is no reason that cannot be changed in the future as the longevity and health of our population increases.

I hope that with the co-operation of the Seanad we can progress the Bill. I welcome the Senators' comments. I will reflect on them with the Minister, Deputy Donohoe, who is also anxious that the Bill be progressed. I hope we can have further consideration of the Bill next week and that we reach the point where we are in a position in the autumn to bring it to the Dáil, hopefully without amendment. That will allow us deliver to the people who are approaching us constantly to know when they will be able to avail of its measures. We hope to have the legislation enacted as soon as possible. People who are 64 are approaching that deadline and they, and their families, are concerned. They have made arrangements. It is hoped we will be able to make provision for them.

I look forward, with the indulgence of the House, to coming back here next week to deal with the Bill. I thank the Senators for their contributions and for the spirit in which the Bill has been received. This is progressive legislation, the aim of which is to reflect the fact that people have a contribution to make in terms of their experiences, which are important, and we want to capture those in the best way possible.