Brian O'Shea (Waterford, Labour)
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Question 69: To ask the Minister for Finance his views on proposals to increase the retirement age of public servants; the impact that this will have on the public sector pension liability; when he plans to make these proposals public; and if he will make a statement on the matter. [11637/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I presume the Deputy's question relates to the increase in pension age for future recruits to the public service announced in Budget 2010. A retirement age of 70 years is to be introduced as part of the new arrangements also but, as the Deputy will be aware, this is in the context of no retirement age applying to public servants recruited after 1 April 2004. With regard to the matter of the increase in pension age, I would point out that this is one of a number of public service pension reform measures announced in the Budget. A key objective of this initiative is to secure sustainable, affordable and controllable public service pension costs in the medium to long term while ensuring that the Government and State continue to provide fair and adequate pensions in retirement.

As acknowledged in the National Pensions Framework, the task of financing increasing pension spending will, in future, fall on a diminishing share of the population. The proposals contained in the Budget are firmly supportive of the broader reform agenda in the Framework document. The new single public service pension scheme outlined in the Budget contains a provision to apply a minimum pension age of 66 years to future recruits. This provision will, henceforth, be linked to the State Pension age. The projected long run annual savings from this measure are estimated, in constant 2010 terms, at 500m euro. As indicated in the Budget, the details of the new scheme will be considered by Government following consultation between my Department and public service employers and unions. This process is well under way and it is intended to enact the necessary legislation so as to have the new arrangements in place by the end of the year.