Written answers

Tuesday, 28 June 2005

Department of Finance

Pension Provisions

10:00 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Question 321: To ask the Minister for Finance when the circular giving full effect to the pensions provisions of the Protection of Employees (Part-Time Work) Act 2001 will be issued. [22837/05]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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The Protection of Employees (Part-Time Work) Act 2001 and any regulations made under that Act are the responsibility of the Minister for Enterprise, Trade and Employment. Statutory responsibility for occupational pensions scheme legislation rests with the Minister for Social and Family Affairs. The pensions board offers guidance as appropriate.

My Department issued a circular 2/2003 dated 31 January 2003 to all Departments, which gave a summary of the main provisions of the Act as it applies to civil servants and notified Departments of their obligations under the legislation. In general, the Act provides that a part-time employee, as defined in the Act, cannot be treated in a less favourable manner than a comparable full-time employee regarding conditions of employment. However, regarding any pension scheme or arrangement these provisions do not apply to part-time employees who normally work less than 20% of the normal hours of comparable full-time employees.

As the Deputy may be aware, the Commission on Public Service Pensions considered, among other things, possible improvements to pension arrangements for part-time public servants, particularly with regard to access to pension schemes and to the method of integration of occupational pensions with social insurance benefits. In his Budget Statement in December 2003, my predecessor announced that the Government had decided to implement the bulk of the recommendations of the commission.

Discussions were subsequently held with the unions and in September 2004, following Government approval, the introduction of certain key recommendations, including a proposal for pro rata integration for the pensions of part-time staff, was announced. The effect of the change to pro rata integration will be that the occupational pensions of part-time public servants will be calculated on the basis of pro rata service and a notional full-time salary. This will result in an improved pension benefit for part-time public servants whose pensions are integrated with social welfare benefits, that is where the occupational pension is integrated with the old age contributory pension, OACP, to provide a combined pension. My Department is currently finalising a detailed circular on revised arrangements for part-time public servants to implement the new system. The opportunity is being taken in this circular to remind Departments once more of their obligations under the Act and of the need to comply with the provisions of the Act. The circular is at an advanced stage and it is intended to issue it in the near future.

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