Alan Shatter (Dublin South, Fine Gael)
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Question 142: To ask the Minister for Finance the guidelines that exist regarding the procedure applicable to the early retirement of a public servant or a chief executive or an employee of a State or semi-State body; the circumstances stated in such guidelines in which it is said to be appropriate to effect such early retirement; the financial arrangements applicable to same; if he will furnish a copy of the said guidelines; and if it is intended to make amendments to them. [34605/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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In the civil and public service, Cost Neutral Early Retirement (CNER) has been available since 1 April 2004 for individuals who wish to retire with immediate pension up to 10 years before normal retirement age. More recently, the Incentivised Scheme of Early Retirement (ISER) has been available. The procedures and circumstances whereby these arrangements may be availed of are set out in Circulars 10 of 2005 (CNER) and 12 of 2009 (ISER). Civil and public service superannuation schemes provide for early retirement on grounds of ill-health, which may include some additional years of notional service, depending on age and service.

There are specific early retirement provisions in various areas of the Public service. Gardai, prison officers and psychiatric nurses who are not new entrants as defined in the Public Service Superannuation (Miscellaneous Provisions) Act 2004 may retire on reaching the age of 50 if they have 30 years of service. This means that they have qualified for full pension entitlements because under their schemes each year of service in excess of 20 years reckons as 2 years of service for pension purposes. Primary and secondary school teachers may retire on or after age 55 if they have 35 years of service. In the Defence forces, officers who are not new entrants under the 2004 Act may retire with immediate pension after 12 years service regardless of age and similarly enlisted personnel may retire with immediate pension after 21 years service also regardless of age.

Section 6 of the Superannuation Act 1909 and sections 6 and 7 of the Superannuation and Pensions Act 1963 set out rules governing early retirement of civil servants as a consequence of abolition of office or for the purposes of facilitating improvements in the organisation of the department in order to effect greater efficiency and economy. Section 6 of the 1909 Act allows for the immediate payment of pension on retiring. Section 6 of the 1963 Act allows for the addition of up to 10 years of notional service and section 7 of that Act allows for the grant of a special severance gratuity of up to one-half of annual salary. These provisions apply to Secretaries General and similar provisions apply to County Managers under the Local Government Superannuation Scheme. In the wider public service the provisions of the 1909 and 1963 Acts serve as guidelines in dealing with similar cases. In operating these provisions, the practice in the main is not to grant additional years of notional service and a severance payment to any one individual.

For full-time board members and equivalent positions in the Competition Authority, Labour Court, Environmental Protection Agency and Bord Pleanála retirement is normally between age 60 and 65; however, members who have their appointment terminated (other than for stated misconduct), or are not re-appointed on expiration of their period of office, are entitled to immediate pension and lump sum where they have accrued more than two years' service. Preservation of benefits applies only in case of voluntary resignation after two or more years' service.

The Department of Finance letter of 26 May 1998 to all Heads of Departments sets out the enhanced retirement/severance terms for chief executive officers of non-commercial semi-State bodies whose contracts are not renewed or are terminated, and the conditions under which they may be made available. Such non-renewal or termination might arise where the board and Minister conclude that there is a need for a fresh approach in the interest of efficiency and effectiveness of the organisation. It is envisaged that the terms set out in the 1998 letter will be reviewed as part of a wider examination of public service pensions which is being undertaken with a view to developing a new and comprehensive pensions framework.

It is not possible to cover all the early retirement arrangements across the public service. The Deputy might wish to consult respective Ministers about specific circumstances pertaining to agencies and bodies under their aegis.