Paul Connaughton Snr (Galway East, Fine Gael)
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Question 546: To ask the Minister for Education and Science if she will specifically state if the scheme for the compulsory purchase of reckonable service which is currently being offered to institutes of technology, vocational educational colleges, local authority and semi-State organisations is based on the current income of the employee or on the salaries that were paid to such employees some years ago for the period that they are now purchasing the pension; if her attention has been drawn to the fact that an employee who started in an IT establishment in 1995 as temporary whole time and was subsequently made permanent in 1997 is now asked to buy back pension rights for the years 1995 to 1997 based on a current salary and not the salary that the employee was in receipt of from 1995 to 1997; her views on whether the system is fair; and if she will make a statement on the matter. [3582/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Under the relevant pension schemes for VEC and Institutes of Technology officers, a person on appointment to a permanent post is required to purchase previous temporary whole-time 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 rate 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 than 3 months from the date of appointment to the permanent post.

While payment of main scheme contributions is compulsory on appointment to a permanent pensionable post, a number of options for the payment of the contribution to the Spouses and Children's Scheme exists. Where a person opts to pay the Spouses' and Children's contribution 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 later this year.

I should point out that this 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 and part-time service in approved posts is now considered pensionable on an ongoing basis.