Brendan Griffin (Kerry South, Fine Gael)
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Question 48: To ask the Minister for Public Expenditure and Reform if he will introduce emergency legislation to deal effectively with the issue of oversized lump sums and pension payments to some senior civil servants; and if he will make a statement on the matter. [25145/11]

Brendan Howlin (Wexford, Labour)
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The matter of pension arrangements for retiring Secretaries General is at present the subject of a review by my Department, following which I will bring forward proposals in relation to the Top-level Appointments Committee (TLAC) retirement terms. This review is dealing with the terms of future Secretaries General. The Government will be ensuring that the new terms reflect our changed economic circumstances.

As regards the current incumbents of Secretary General posts, their appointments were based on TLAC terms that were agreed by the previous Government at the time of the incumbents' appointments. The Government will be required at the end of the Secretary General's term of office to decide in the case of those under-60 years of age whether they are to be assigned to another Civil or Public Service post, or to grant them TLAC retirement terms. In the case of a retiring Secretary General over 60 years, they are granted the TLAC retirement terms. It should be noted that these terms form part of the terms and conditions of appointment of present Secretaries General.

The new single public service pension scheme will introduce a career averaging system, rather than one based on final salary. There is no provision in the scheme for enhanced exit terms for Secretaries-General. Legislation on this will be introduced by the Minister for Public Expenditure and Reform shortly.

It should be noted that Secretaries General have had their salaries cut from €285,000 to €214,000 which will have a significant impact on the superannuation benefits of those retiring after February 2012. Those retiring before then will be subject to an average reduction in their pension of around 10 per cent. Lump sums over €200,000 are also being taxed.