Written answers

Tuesday, 21 October 2008

Department of Finance

Departmental Staff

9:00 pm

Photo of Lucinda CreightonLucinda Creighton (Dublin South East, Fine Gael)
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Question 230: To ask the Minister for Finance the amount that was granted in pensions in each of the past five years to individuals who retired early from his Department; and if he will make a statement on the matter. [35641/08]

Photo of Lucinda CreightonLucinda Creighton (Dublin South East, Fine Gael)
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Question 231: To ask the Minister for Finance the amount that was spent in each of the past five years on staff who replaced those who took early retirement; and if he will make a statement on the matter. [35656/08]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 230 and 231 together.

I assume the Deputy is referring to a voluntary early retirement scheme. No such scheme is available to staff in the Civil Service. However, there are other arrangements which make provision for retirement earlier than normal pension age in certain circumstances. Arrangements for cost-neutral early retirement were introduced in 2005 under Department of Finance Circular 10/2005 and are available in the Civil and Public Service generally. In broad terms this facility, which was recommended by the Commission on Public Service Pensions, allows staff who are within ten years of their normal pension age to apply for early retirement with immediate payment of their superannuation benefits.

The benefits are actuarially reduced to ensure that the early payment is cost-neutral to the Exchequer. Retirement before normal pension age with immediate payment of superannuation benefits may be permitted on medical grounds. Superannuation benefits may also be paid to a Civil Servant before normal pension age as a consequence of the abolition of his or her post or removal from office to facilitate improvements in the organisation of the Department by which greater efficiency and economy can be effected.

The amount granted in pensions to staff retiring under the above arrangements in each of the past five years is set out in the following table.

20042005200620072008 to dateTotal
â'¬117,582â'¬121,077â'¬59,689â'¬41,473â'¬99, 588â'¬439,410

In deciding whether a vacant post should be filled or suppressed, no distinction is generally made between vacancies arising from normal retirement (i.e. other then under a specific retirement scheme) and those arising from other causes. Accordingly, the remuneration of staff subsequently appointed to such posts would not be regarded as replacement cost.

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