Ruairi Quinn (Dublin South East, Labour)
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Question 149: To ask the Minister for Finance the reason, in regard to the incentivised early retirement scheme, footnote five of appendix A suggests that a public servant who pays the D1 class of PRSI contribution is entitled to a greater pension payment under the scheme when compared with a public servant who pays the A1 class of PRSI contribution; if he will explain this discrepancy; his plans to alter the terms of the scheme in order that this discrepancy is removed; and if he will make a statement on the matter. [24943/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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A supplementary pension may be paid in certain circumstances to a person whose occupational superannuation benefits are co-ordinated with the State Pension (Contributory). A supplementary pension may be paid to pensioners in respect of periods during which the pensioner is not employed in any capacity which involves a social insurance contribution and, due to causes outside his/her own control, fails to qualify for social insurance benefit or qualifies for such benefit at less than the maximum personal rate.

The supplementary pension is equal to the difference between (i) the occupational pension which would have been payable if it had been based on pensionable remuneration (i.e. gross pay plus pensionable allowances) instead of net pensionable remuneration (i.e. gross pay plus pensionable allowances minus twice the rate of State Pension (Contributory) payable to a single person) and (ii) the aggregate of the actual occupational pension payable and the actual rate of social insurance benefit payable (including any payments for dependants).

A supplementary pension is not paid under the incentivised early retirement scheme (ISER) until a person reaches pension age (age 60 for the bulk of civil and public servants), which is similar to the arrangements under the cost neutral early retirement (CNER) scheme. The ISER is essentially based on the CNER arrangements except that the benefits are not actuarially reduced and only a portion of the lump sum is paid on leaving the employment. There are no proposals to amend the ISER as suggested by the Deputy, which would erode the savings yield from the scheme.