Michael Noonan (Limerick East, Fine Gael)
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Question 701: To ask the Minister for Health and Children if pension credit will be allowed to general practitioners for the years they served as temporary DMOs, and for the years they worked in the fee per item scheme and in the capitation scheme when it was not possible to make contributions; if her attention has been drawn to the fact that many general practitioners have inadequate pensions due to the limited number of years for which it was possible for them to make such contributions; and if she will make a statement on the matter. [28999/06]

Mary Harney (Dublin Mid West, Progressive Democrats)
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Temporary District Medical Officer posts were not superannuable. In September 1999, following agreement between my Department and the IMO an ex-gratia payment of £1,000 (€1,270) was to be made to temporary District Medical Officers. I understand that changes made on a retrospective basis in respect of persons who previously held temporary public service posts may, subject to specific criteria and conditions being met, allow such persons to superannuate such previous temporary service and subsequently gain entitlement to a pension. Given that temporary District Medical Officers would have been employed by the former health boards I have asked the Health Service Executive to examine this issue in the context of the provisions governing retrospective action in this area.

Temporary District Medical Officers who took up Fee-per-Item or Capitation contracts for service to provide general practitioner services under the General Medical Services (GMS) Scheme would come under the terms contained in those contracts.

General Practitioners, including those who hold contracts to provide services to public patients under the terms of the GMS Scheme, work in the private sector as independent service providers. General Practitioners are not employed by the State. As such GPs in common with other professional groups are, in the first place, solely responsible for making provision for many aspects of their professional careers including their pension on retirement from practice.

Many GPs while operating as private practitioners also hold contracts for service under the GMS Scheme. The vast majority of such GPs hold the GMS GP Capitation contract the terms of which reflect the agreed outcome of negotiations between my Department and the GP representative body, the Irish Medical Organisation (IMO). This type of contract was first introduced in 1989. Included in the GMS GP Capitation contract is a provision relating to a scheme of superannuation as follows:

"A scheme of superannuation shall be established which shall be administered by the Irish Medical Organisation. The Health Boards (now the HSE) shall pay into such a scheme a sum equivalent to 10% of total capitation fees payable to medical practitioners under the scheme. In addition, each medical practitioner shall contribute 5%, which sum shall be deducted from the capitation payments due to the medical practitioner and shall be paid on his behalf and for his benefit into the aforementioned scheme by the Board."

In accordance with this contract provision the IMO appoint Trustees to administer the superannuation scheme which is known as the "GMS Superannuation Plan". From October 2001 under the terms of the Plan members were allowed to make additional voluntary contributions giving members the opportunity to augment benefits accruing at retirement. In 2004, the contribution made by the former health boards to the "GMS Superannuation Plan" amounted to over €16 million while in 2003 it was in excess of €15 million. It will be noted that this was in addition to capitation payments and other fees paid to GPs under the GMS Scheme which totalled (excluding the superannuation contribution) over €290 million in 2004 for approx. 2,200 GPs and in excess of €271 million in 2003 for approx 2,180 GPs.

A small number of GPs hold Fee-per-Item GMS Scheme contracts with the HSE. This contract for service was introduced in 1972 when the GMS Scheme was first established. There are 17 GPs holding such contracts. The Fee-per-Item GP contract was also agreed on foot of negotiations between the Department of Health and Children and the IMO. It did not contain provision for a scheme of superannuation. It fell to each GP to make arrangements in this respect as they felt appropriate. It will be noted that in 1989, on the introduction of the GMS GP capitation contract, those GPs with Fee-per-Item contracts were given the option of taking up the former.