Written answers

Tuesday, 20 June 2006

Department of Health and Children

Health Service Staff

10:00 pm

Paul McGrath (Westmeath, Fine Gael)
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Question 151: To ask the Tánaiste and Minister for Health and Children the number of posts which were terminated in the context of the termination of posts in the former health boards; the superannuation arrangements which were made for personnel to transfer to other sections; and if any persons qualified under the abolition of posts criteria for special payments. [23396/06]

Paul McGrath (Westmeath, Fine Gael)
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Question 152: To ask the Tánaiste and Minister for Health and Children the regulations and legislation which were applied in deciding on the termination payments for the former chief executive officers of the health boards. [23397/06]

Paul McGrath (Westmeath, Fine Gael)
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Question 153: To ask the Tánaiste and Minister for Health and Children the regulations and legislation which were applied in deciding on the termination payments for the former non-chief executive officer posts of the health boards. [23398/06]

Paudge Connolly (Cavan-Monaghan, Independent)
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Question 178: To ask the Tánaiste and Minister for Health and Children the number of early retirement deals awarded to previous health board staff due to the demise of the former health boards and the formation of the Health Service Executive; the cost of such early retirement deals to the Exchequer; and if she will make a statement on the matter. [23550/06]

Photo of Mary HarneyMary Harney (Dublin Mid West, Progressive Democrats)
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I propose to take Questions Nos. 151, 152, 153 and 178 together.

Section 60 (1) of the Health Act, 2004 states that "Each person who, immediately before the establishment day, was an employee of a specified body is, on that day, transferred to and becomes an employee of the Executive." In accordance with section 60 of the Act no redundancies occurred, either of a compulsory or voluntary nature, as a consequence of the recent health reforms.

Employment in the Health Boards/ERHA/ Area Boards is superannuated under the Local Government (Superannuation) (Consolidation) Scheme — S.I. 455 of 1998 (LGSS). The superannuation benefits of permanent officers ceasing to hold office are covered under sections 70 and 71 of the Scheme and provide for retirement lump sum and annual pension. Benefits of certain managers, ie those at CEO level, on fixed term contracts are provided for under Section 78 of the Scheme and entitlements include immediate pension, retirement lump sum, 26 weeks severance gratuity, and added years (subject to maximum of ten years). Membership of and the payment of employee contributions to the superannuation scheme is mandatory for all employees.

Ten of the twelve former CEOs opted to exit the system (nine on contract and one permanent post holder (who had full service)). In addition, following discussions under the auspices of Mr. Finbarr Flood, acting as Mediator, exit terms were to be supplemented as follows:

1. a once-off payment of €10,000 to all CEOs in recognition of the legal duties and functions of the chairpersons and members of the Health Boards having been statutorily assigned to them during the period 1st July 2004 to 31st December 2004,

2. a re-training grant of up €10,000 to be paid on basis of vouched expenditure,

3. an ex gratia payment equivalent to six months' gross salary.

Proposals 2 and 3 applied to those CEOs who requested to leave the HSE by 1st July 2005. These proposals were put forward by the Mediator on the basis of: the uniqueness of the position of the CEOs within the context of the abolition of the Health Boards and the transition to the HSE structures under the Government's health service reform programme, and also the leading role played by the CEOs in facilitating the transfer of accountability and ensuring a safe passage to the new structures.

Apart from the CEO posts, three additional posts have been abolished: one contract post (to which Section 78 applied) and two permanent posts. Sections 11 and 66 of the Scheme provide for an "addition to pensionable local service" of a pensionable officer. These sections provide for a qualifying permanent post holder, who ceases to hold office, to be awarded notional added years for superannuation purposes in certain circumstances.

The costs of the superannuation benefits payable were administered by the Health Service Executive and I understand that the cost of providing superannuation benefits and ex gratia payments to former Chief Executive Officers was in the region of €3.4 million. The costs of superannuation benefits payable to the additional three persons who had left the HSE was in the region of €0.5 million. I have asked the HSE to notify the Deputies of the exact figure in due course.

Finally you may wish to note that in the normal course of events where a post becomes vacant, the decision on whether or not to fill that post is a management decision for the HSE.

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