Terence Flanagan (Dublin North East, Fine Gael)
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Question 134: To ask the Minister for Health and Children if she will deal with a matter (details supplied); and if she will make a statement on the matter. [43187/10]

Mary Harney (Dublin Mid West, Independent)
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On 1 November 2010 I announced that the Government has decided to approve a voluntary early retirement scheme and a voluntary redundancy scheme for certain categories of staff in the public health service.

The purpose of the schemes is to achieve a permanent reduction in the numbers employed in the public health sector from 2011 onwards and to facilitate health service reform. The Government must strike a balance between incentivising people to leave now and the cost of any package. The Government is capping the total amount that will be paid out under the schemes at €400m in 2010. The terms on offer, particularly given the current budgetary situation, are fair and reasonable.

The savings to be achieved in 2011 will depend on the uptake of both schemes and the grades of staff involved. A reduction of the order of 4,500 to 5,000 staff could generate savings of approximately €200m depending on the mix of voluntary severance and voluntary early retirement. However, it is impossible to predict the uptake of a voluntary scheme. The potential savings take account of pension payments in 2011 however it is just an estimate as we have no way of knowing the grade and scheme mix at this point.

The January 2010 pay reductions will be disregarded for the purpose of calculating pensionable remuneration under the VER, i.e. payment will be based on salary rates applicable at 31st December 2009. Under the redundancy scheme, preserved pension and lump sum payable on attaining preserved pension age (60 or 65, as appropriate) will be calculated in accordance with the rules in place at the time preserved pension age is reached.

The HSE has put in place a dedicated website which includes a comprehensive Questions and Answers section and a ready reckoner to assist potential applicants.