Written answers

Tuesday, 17 February 2009

Department of Enterprise, Trade and Employment

Pension Provisions

9:00 pm

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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Question 134: To ask the Tánaiste and Minister for Enterprise, Trade and Employment further to Parliamentary Question No. 177 of 3 February 2009, the reason for the pension top-up and [i]ex gratia[/i] payment made and the statutory basis for these payments; and if she authorised these payments. [6327/09]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The severance package granted to the former Director General of FÁS was granted in accordance with Section 6(3) of the Labour Services Act 1987. The Labour Services Act provides that terms and conditions, including those in relation to remuneration and superannuation, of the Director General, may be determined by the Minister with the consent of the Minister of Finance.

The severance package recognised the public service given by the former Director General of FÁS during his tenure in that organisation, as well as his many years as a civil servant in my Department.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 135: To ask the Minister for Finance the estimate of the full year and the 2009 Exchequer and local government savings, over and above the savings from the deferral of the national pay agreement, from a public sector pay cut of 5% on salaries of more than €50,000, €60,000, €70,000 and €80,000 respectively, from March 2009; and the breakdown of these savings between existing and retired public sector workers. [5576/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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It is estimated that the savings in the various bands mentioned by the Deputy from a 5% cut in salary would be as follows:

BandEstimate 2009Estimate Full Year
â'¬â'¬mâ'¬m
50,000 upwards290350
60,000 upwards160195
70,000 upwards125150
80,000 upwards95115

There is no breakdown readily available on the distribution of pensions among retired public servants generally. The limited information that is readily available would not allow reasonable estimates to be made of the effect on pension outgo of pay cuts which were limited to certain categories of retirees.

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