Written answers

Tuesday, 29 June 2010

Department of Finance

Public Sector Staff

10:00 am

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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Question 129: To ask the Minister for Finance the position regarding the workers in the public service who are employed on an annual contract basis; if such workers should pay the civil service pension levy in view of the fact that they are not permanent pensionable workers; if they are entitled to a refund of contributions paid in view of the fact that contracts are being terminated due to the terms of staff embargo and provisions of fixed term employment contracts. [28102/10]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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In order to be liable for the pension-related deduction as set out in Section 2 of the Financial Emergency Measures in the Public Interest Act 2009 one must be a public servant (as defined in Section 1 of the Act) and (a) a member of a public service pension scheme (as defined in Section 1 of the Act) or (b) entitled to a benefit under such a scheme or (c) receive a payment in lieu of membership in such a scheme. In summary, therefore, the pension-related deduction applies to public servants who are employed by or hold an office or position in a public service body and are members (or entitled to be members) of a public service pension scheme.

The length of an individual's contract is not relevant as to whether or not a deduction is to be made. In general, most contract staff in the public service are now eligible for pension scheme membership. In addition, a person who is on a contract and, for example, is entitled to a payment such as a gratuity in lieu of membership of a pension scheme, would be liable for the deduction.

If the person to whom the deduction has applied leaves (a) without a benefit or preserved benefit, or (b) without a payment in lieu or preserved payment in lieu, and (c) without transferring the service, a refund of the pension-related deduction is provided for under Section 6 of the Act.

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