Michael McCarthy (Cork South West, Labour)
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Question 180: To ask the Minister for Public Expenditure and Reform the projected budgetary changes to lump sums and pension arrangements in respect of public servants with 37.5 years of service; and if he will make a statement on the matter. [25845/11]

Brendan Howlin (Wexford, Labour)
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I understand that the Deputy is interested in the 'grace period' and its effects. The Financial Emergency Measures in the Public Interest (No. 2) Act 2009 provided for a period within which pensions are unaffected by the pay cuts introduced in that Act. This 'grace period was due to expire by the end of 2010 however it was extended to 29 February 2012 to avoid too large a number of public service retirements in 2011 and to spread the extra pension lump sum costs over a more manageable period in both 2011 and 2012.

Also, in July this year a 3 month minimum notice period for retirement was introduced for the public service. The purpose of this minimum notice period is to protect services by giving management information about the number of staff retiring in a particular area and to assist in planning how best to maintain services. I have no plans to introduce any special arrangements for public servants who do not have forty years pensionable service: in accordance with the standard pension arrangements, those who opt for retirement will receive a pension based on the service accumulated to the date of their retirement. I would point out that, generally, public servants who are aged over 50 may avail of cost neutral early retirement.