Written answers

Tuesday, 31 March 2009

9:00 pm

Photo of Andrew DoyleAndrew Doyle (Wicklow, Fine Gael)
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Question 151: To ask the Minister for Finance if contract research staff in universities are eligible for exemption from the pension levy in view of the temporary nature of their employment and the lack of benefits, incremental pay scale or pension options for these positions. [12955/09]

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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Question 153: To ask the Minister for Finance if he will advise on a matter (details supplied). [12982/09]

Photo of Ruairi QuinnRuairi Quinn (Dublin South East, Labour)
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Question 154: To ask the Minister for Finance if he will exercise his powers under section 8 of the Financial Emergency Measures in the Public Interest Act 2009, to exempt research staff at third level institutions from deductions under section 2 of that Act, having regard to the particular aspects and conditions of their employment that materially distinguish them from other employees in the public sector (details supplied); and if he will make a statement on the matter. [13008/09]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 170: To ask the Minister for Finance his views on exempting university research staff who are on fixed term contracts from the pension levy, under section 8 of the Financial Emergency Measures in the Public Interest Act 2009, as they would be unlikely to accumulate the years of service needed to receive a meaningful benefit from a public service pension; and if he will make a statement on the matter. [13367/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions 151, 153, 154 and 170 together.

Public servants who are members of public service pension schemes are liable to pay the pension-related deduction legislated for in the Financial Emergency Measures in the Public Interest Act 2009. On this basis, third-level researchers on fixed-term and temporary contracts must pay the deduction, since they are members of the relevant occupational pension schemes. They are just one of many groups of non-permanent public servants paying the deduction. Distinctions between public servants on the basis of whether they are permanent or temporary, and if temporary what contract duration applies, are irrelevant insofar as liability to pay the deduction is concerned. The pay of the post, in terms of whether it features incremental progression, is likewise irrelevant.

In recent years fixed-term researchers in third-level institutions have been made pensionable, and this has significantly improved the attractiveness of a research career. These researchers accrue pensionable service even for short-duration appointments and that service can be aggregated with past and future service in other pensionable public service employment.

Section 6 of the Act provides for a refund of the deduction in certain circumstances, and should reassure third-level researchers on short-term non-renewable contracts who have no prior public service employment history and who may be concerned about accruing no pension benefit at the expiry of their contract due to insufficient service. A deduction refund may be payable provided that the departing employee has accrued no benefits under any public service pension scheme, has not received a payment in lieu of scheme membership and has not transferred the service to another public service pension scheme.

Section 8 of the Act grants the Minister for Finance a limited special discretion to exempt groups of public servants from payment of the deduction. Specifically, where he is satisfied that due to exceptional circumstances, a particular class or group of public servants are materially distinguished from other classes or groups who are subject to the deduction, then the Minister may fully or partly exempt this group from paying some or all of the deduction, if he believes it would be fair and equitable to do so. The deduction is required at a time of great pressure on the public finances and takes account of the valuable pension benefits available to public servants.

In light of all the above factors, I am satisfied that it is fair and appropriate that public servants on fixed-term and temporary contracts, including third-level researchers, are subject to the pension-related deduction. In the event that any class or group of public servants makes an appeal for exemption from the deduction under section 8 of the Act then such an appeal will be considered.

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