Jerry Cowley (Mayo, Independent)
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Question 304: To ask the Minister for Education and Science if she will demand that graduate teachers work until they are 65 to receive their full pension; her views on whether this is in the best interest of the children; her further views on whether teachers should have an earlier choice of retirement age; and if she will make a statement on the matter. [2364/05]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The position is that the Public Service Pensions (Miscellaneous Provisions) Act was passed into law on 25 March 2004. It provides that the minimum age at which pension will be paid to the generality of new entrants to the public service, including teachers, will be 65. It also abolishes compulsory retirement on grounds of age in the case of new entrants.

The Act defines the term "new entrant". The definition is complex but, broadly speaking, a new entrant is a person who commences employment in the public service on or after 1 April 2004 or who, after a break of more than 26 weeks, returns to employment in the public service on or after 1 April 2004.

The Act provides that employees in certain sectors of the public service must continue to retire before age 65. These are sectors where, unlike the provision for the majority of public servants, including teachers, retirement before 65 has always been required for operational reasons. The sectors in question comprise the Defence Forces, the Garda, prison officers and fire-fighters.

The reforms which have been enacted arose from consideration by Government of the recommendations of the commission on public service pensions. The commission was established by Government in 1996 because of concerns regarding the rising cost of public service pensions. The age at which public servants, including teachers, should retire were among the matters which were considered by the commission.

Teachers already in service may continue to avail of the existing provisions for early retirement, including the early retirement scheme for teachers introduced under the PCW agreement. This latter scheme is also available to new entrants. The early retirement scheme for teachers was introduced some years ago on a pilot basis pending review in the light of the report of the commission on public service pensions. The commission, in its report of 2001, recommended that the pilot scheme be continued for a further five years and be further reviewed at that time.

Although a quota of 400 retirements per year was agreed under the early retirement scheme for teachers, the number of retirements in any year since the scheme was introduced in 1996-97 has never attained even half of the quota.

The commission also recommended the introduction of a scheme of cost-neutral early retirement. Following consideration of this issue by a joint management and union working group, the Government announced in September 2004 that such a scheme would be established. The scheme will provide for the retirement from age 55, with actuarially-reduced pensions, of new entrants to the public service. It will also provide similarly for the retirement from age 50 of public servants who are not new entrants. It is expected that a circular authorising the implementation of this scheme by public service bodies will be issued shortly.