Maureen O'Sullivan (Dublin Central, Independent)
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Question 119: To ask the Minister for Finance if he will provide the reasoning behind the proposed pension scheme for new teachers and public servants in regard to career average, later retirement and CPI linkage in view of the fact that under the proposed new scheme the value of many teachers contributions will exceed the value of benefits; his views on the Trident Report commissioned by the teacher unions; the reason there was very little consultation with the unions on this issue; and if he will make a statement on the matter. [43759/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As I announced in Budget 2010, the Government is committed to the introduction of a new single public service pension scheme for new joiners. The new scheme is aimed at securing considerable long-term Exchequer savings, while continuing to offer fair and reasonable pensions to retired public servants. Its principal features will include career-average benefit accrual, inflation-indexation of benefits and an increased pension age. The Government considers these features to be important and appropriate. Extensive consultations on the proposed new scheme with Government Departments and with the staff side have in fact taken place over the past 18 months. Draft legislation to introduce the new scheme is currently in preparation, and it is planned that the scheme will be operational in 2011.

My Department is aware of the report by Trident Consulting entitled "Future Pension Provision" which was commissioned by the three teachers unions, ASTI, INTO and the TUI. In addition, my Department is aware of the views of these unions concerning the Government's planned introduction of a single pension scheme for all new-entrant public servants. The Trident Report was made available to officials of my Department and was the subject of a specific meeting between my officials and the teachers unions.

I do not accept that single scheme members will make contributions in excess of the value of their benefits. In this context I would note that the pension-related deduction is not a pension contribution, this set out in section 7(2) of the Financial Emergency Measures in the Public Interest Act 2009.

I welcome the Trident Report as a contribution to the debate on pension provision. However the Report's recommended approaches to pension provision differs in fundamental respects with the Government's policy and I can not accept the Report as a policy basis for pension provision for new-entrant teachers at this time.