Terence Flanagan (Dublin North East, Fine Gael)
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Question 551: To ask the Minister for the Environment, Heritage and Local Government if he will support the following matter (details supplied); and if he will make a statement on the matter. [31747/10]

John Gormley (Dublin South East, Green Party)
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Retirement lump sums for civil servants are calculated on the basis of 3/80ths of salary per year of service, subject to a maximum of 11⁄2 times the salary on which superannuation benefits are based. Under the terms of the Public Service Agreement (PSA), pay reductions which took effect in January 2010 are currently disregarded for the purposes of calculating superannuation benefits. Accordingly, the salary on which benefits are based may currently exceed the actual salary payable at the time of retirement.

A Secretary General who is required by the terms of his or her contract to retire on reaching the age of 60 is entitled to a special severance gratuity of six months salary on the terms specified in sections 6 and 7 of the Superannuation and Pensions Act, 1963. These terms are subject to the application of special abatement provisions if the Secretary General concerned subsequently obtains employment in the public sector.

One Secretary General and two Assistant Secretaries have retired from my Department since 2005. Their lump sums were calculated in accordance with the Civil Service Superannuation Scheme. The total gross lump sums paid in these three cases amounted to €818,866 including a special severance gratuity of €100,589. Retirement lump sums ranged from 148% to 150% of the salary on which superannuation benefits are based.