Written answers

Wednesday, 16 November 2005

Department of Finance

Pension Provisions

9:00 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 240: To ask the Minister for Finance the number of persons employed in the public sector distinguishing the pension contribution made by different categories of worker and indicating the corresponding employer contribution. [34871/05]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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The Minister for Finance has statutory responsibility for Civil Service pensions only. The statutory responsibility for other public service and public sector pension schemes rests with the relevant Ministers. The normal usage is that the term "public service" does not include commercial State companies while the term "public sector" does include them.

In general, public service pension schemes operate on a pay as you go basis. There is, therefore, no explicit employer contribution. A few funded schemes are in place in non-commercial bodies but they are more common in commercial State bodies. The contribution rates and benefits for these schemes vary from scheme to scheme. The contribution rules vary depending on whether a person entered public service employment before 6 April 1995. I have been advised that the contribution rates in the main public service schemes are set out as in the table.

Pre-1995 Post-1995
Civil Service Main Scheme Established No explicit contributions 1.5% of gross pensionable remuneration + 3.5% of co-ordinated remuneration. Co-ordinated pay is gross pensionable remuneration less twice the Old Age Contributory Pension
Unestablished No explicit contributions No explicit contributions
Civil Service Spouses & Children's (S&C) Established 1.5% of basic pay 1.5% of gross pensionable remuneration
Unestablished 1.5% of co-ordinated remuneration 1.5% of co-ordinated remuneration
Garda Síochána 1.75% of gross pensionable remuneration 1.5% of gross pensionable remuneration + 3.5% of co-ordinated remuneration
Garda Spouses & Children's 1.5% of gross pensionable remuneration 1.5% of gross pensionable remuneration
Defence Forces Enlisted Personnel No explicit contributions No explicit Contributions
Commissioned Officers No explicit contribution 1.5% of gross pensionable remuneration + 3.5% of co-ordinated remuneration
Defence Forces Spouses & Children's Enlisted Personnel 1.5% of four times the amount of Spouses pension (somewhat less than 1.5% of gross pensionable remuneration) 1.5% of four times the amount of Spouses pension (somewhat less than 1.5% of gross pensionable remuneration)
Commissioned Officers 1.5% of gross pensionable remuneration 1.5% of gross pensionable remuneration
Local Authorities Full PRSI 1.5% of gross pensionable remuneration + 3.5% of co-ordinated remuneration 1.5% of gross pensionable remuneration + 3.5% of co-ordinated remuneration
Modified 5% of gross pensionable remuneration 5% of gross pensionable remuneration
Local Authority Spouses & Children's Full PRSI 1.5% of co-ordinated remuneration 1.5% of co-ordinated remuneration and 1.5% of gross remuneration in certain cases.
Modified 1.5% of gross pensionable remuneration 1.5% of gross pensionable remuneration

A new pension scheme will apply to new entrant military personnel who join the Defence Forces on or after 1 April 2004. The terms of this scheme are under discussion with the Defence Forces representative associations. It is envisaged that contribution rates under the new scheme will follow standard public service pension lines.

Both the health and education sectors have the same rates as the local authority sector. A small number of employees who are employed in VECs and institutes of technology and did not opt to join the revised local government superannuation scheme 1990 retain benefits which vary from the standard and pay contributions at 4%. In relation to the spouses' and children's scheme, all teachers who are members of the scheme post-1995 pay contributions to that scheme at a rate of 1.5% of gross pensionable pay.

In local authorities the only sizeable exception is 721 members of the local government superannuation scheme whose benefits vary from the standard and whose contribution rate is 4%.

In general, non-commercial State bodies are similar to the Civil Service for post-1995 staff, although some bodies have contributory schemes for pre-1995 staff. Contribution rates in commercial State bodies vary from scheme to scheme.

The numbers serving in the public service are as follows:

Public Service Serving end June 2005
Civil Service [Non Industrials] 35,288
Civil Service [Industrials] 1,857
Health Sector 100,934
Education Sector 81,028
Defence 11,553
Gardaí 12,176
Local Authorities 33,643
Non Commercial Semi-States 9,103
Total 285,582

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