Liz McManus (Wicklow, Labour)
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Question 212: To ask the Minister for Health and Children her views on the provision of pensions for general practitioners; if this is an adequate provision; her further views on the fact that this pension has not been reviewed for about four years; and if she will make a statement on the matter. [13552/07]

Mary Harney (Dublin Mid West, Progressive Democrats)
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General Practitioners, including those who hold contracts to provide services to public patients under the terms of the General Medical Services (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 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 appoints 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 them the opportunity to augment benefits accruing at retirement. In 2005, the contribution made by the HSE to the 'GMS Superannuation Plan' amounted to over €20 million. It will be noted that this was in addition to capitation payments and other fees paid to some 2,200 GPs under the GMS Scheme which (excluding the superannuation contribution) totalled over €382 million in 2005.

Seventeen 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. The Fee-per-Item GP contract was also agreed on foot of negotiations between the then Department of Health 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.