Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

I thank Senator Craughwell for bringing this important matter to the House.

As the Senator will be aware, the Minister, Deputy Donohoe, has overall policy responsibility in relation to public service occupational pension schemes payable to retired public servants.

For all new entrants to the public service on or after 6 April 1995, the date of the introduction of full social insurance for public servants who now pay Class A PRSI, and before 1 January 2013, the date of the introduction of the single public service pensions scheme, their pension is integrated.An integrated pension scheme considers the State pension as part of the total pension package promised to employees on retirement. One reason for this is that both employers and employees make PRSI contributions, and these in turn entitle scheme members to social insurance benefits, including the State contributory pension.

Integration is used as a means of taking into account the benefits payable under the social welfare system to calculate the following: the amount of pension payable from a pension scheme so the combined pension from both the State pension and occupational pension is at the level aimed at in the scheme's design; and the level of contributions payable by the employee towards the cost of their occupational pension so the contributions payable to an occupational pension scheme reflect the offset from scheme benefits to allow for the State pension. Typically, this is achieved by calculating pension benefits based on this lower "pensionable salary" at retirement. Therefore, the pension payment of a post-1995 public servant comprises three components: a public service occupational pension, payable by the public service employer; a social insurance benefit or benefits – State contributory pension, jobseeker's benefit, etc. – payable, subject to eligibility, by the Department of Social Protection; and, where the full rate of State contributory pension is not payable, a supplementary pension equivalent to a non-integrated pension, which is payable, subject to eligibility, by the public service employer.

Where a public servant does not qualify for the State contributory pension or qualifies for a social insurance benefit at less than the value of the State contributory pension, he or she may be entitled to an occupational supplementary pension, subject to eligibility criteria. In addition, the grant of an occupational supplementary pension has three conditions: the retired public servant must not be in paid employment; the retired public servant, due to no fault of their own, fails to qualify for social insurance benefit or benefits or qualifies for a benefit at less than the value of the State contributory pension; and the retired public servant must have reached the minimum pension age or retired on grounds of ill health.

The second condition is important to ensure no duplication of payments from public funds. To verify this condition, prior to payment of the occupational supplementary pension, a retired public servant must engage with the Department of Social Protection and obtain proof that they have exhausted any relevant benefits for which they may be eligible under the social insurance system. A significant number of occupational pension schemes, both private and public sector, make an allowance for the State pension when providing a pension.

The Department of Public Expenditure, NDP Delivery and Reform is fully aware that the requirement to engage with the Department of Social Protection as part of the process for qualifying for the payment of an occupational supplementary pension is presenting difficulties for individuals and at Intreo offices. My officials are in the process of reviewing the processes involved and have been engaging with key stakeholders with a view to establishing if a more efficient and streamlined approach is possible.