Written answers

Wednesday, 3 November 2010

Department of Finance

Pension Provisions

9:00 pm

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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Question 120: To ask the Minister for Finance further to his recent announcement that new public servants will have their pensions calculated on career average earnings, if he will provide figures in respect of future new entrants in tabular form of the gross pension cost as a percentage of pensionable remuneration; if he will provide a breakdown of this cost that is met by pension contributions of the employee, and the net pension cost to the State, with a breakdown for specific public sector employees such as established civil servants, teachers, nurses, gardaí and others and factoring in entitlement to the State pension. [40690/10]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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The cost effect of the new single pension scheme will depend on the final details of that scheme. These are under active consideration in my Department in the context of the preparation of the necessary legislation to give effect to the new measure and have not yet been decided by Government. While I am not in a position to give the detailed figures requested by the Deputy, I can confirm that the new scheme will reduce the gross pension cost as a percentage of pensionable remuneration. In this connection I would direct the Deputy to the Comptroller & Auditor General's recent Special Report on Public Service Pensions which gives indicative figures based on certain assumptions. I would add that the cost benefits to be delivered by the new scheme will vary depending on levels of future recruitment to the public service, service periods, pay and other factors over the next half century and comparison is not straightforward.

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