Written answers

Tuesday, 20 November 2007

Department of Education and Science

Pension Provisions

8:00 pm

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 407: To ask the Minister for Education and Science the position with regard to the compulsory purchase of pension contributions for reckonable services which was not done when temporary staff were made permanent over the years; the number of people within her Department currently affected; when she expects the situation will be rectified; and if she will make a statement on the matter. [29310/07]

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 408: To ask the Minister for Education and Science the position with regard to the compulsory purchase of pension contributions for reckonable services which was not done when temporary staff were made permanent over the years; if the 1.5% spouse and children element will be calculated at 1.5% of any salary at the relevant time rather than at current rates; and if she will make a statement on the matter. [29311/07]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Nos. 407 and 408 together.

Under the relevant pension schemes for VEC and Institutes of Technology officers, on appointment to a permanent post a person is required to purchase previous temporary and part-time service where this was not pensionable. In the case of an officer who becomes liable on permanent appointment to Class A rate PRSI, the cost of purchasing such prior service is determined on the officer's rates of pay applicable to the permanent post at the time the payment is made.

In the past, where a delay occurred on the part of the employer in notifying the officer of the contributions payable, through no fault of the officer, the cost could have increased. It has recently been agreed, following the outcome of a determination by the Pensions Ombudsman within the general area covered by the Local Government Superannuation Scheme, to amend the charging mechanism for prior service in the case of officers appointed to permanent pensionable positions who are liable to pay class A PRSI. In such cases the cost of purchasing prior service, where purchase is compulsory, will be determined on the person's current pay applicable not later then 3 months from the date of appointment to the permanent post.

While payment of main scheme contributions are compulsory on appointment to a permanent post, a number of options for the payment of contributions to the Spouses' and Children's Scheme exists. Where a person opts to pay the Spouses' and Children's contributions immediately on appointment to a permanent post, then these contributions fall to be determined in the same manner as contributions under the main scheme.

My Department is preparing a circular for issue to VECs and Institutes of Technology advising them of the revised position and this will be issued in the near future. As the individual appointments and superannuation status are matters directly managed by the VECs and Institutes concerned, my Department does not have details of the actual numbers involved. However, I would point out that this particular compulsory feature is confined to a very specific period. More recently introduced improvements in superannuation terms means that compulsory purchase will no longer arise in the case of newly appointed permanent personnel as temporary or part-time service is now considered pensionable on an ongoing basis.

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