Written answers

Tuesday, 11 October 2011

Department of Public Expenditure and Reform

Pension Provisions

8:00 pm

Photo of Mary Lou McDonaldMary Lou McDonald (Dublin Central, Sinn Fein)
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Question 178: To ask the Minister for Public Expenditure and Reform if he will enforce sections 6 and 7 of the Superannuation and Pensions Act 1963 by rescinding special severance gratuity payments and added years awarded to existing senior civil servants such as Secretaries General and county managers on their retirement. [28653/11]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Sections 6 and 7 of the Superannuation and Pensions Act 1963 provide for added years and severance for retiring civil servants in certain circumstances. They are discretionary and are only applied in the context of effecting efficiency and economy in the organisation. In the case of retiring Secretaries General, the enhanced retirement terms only apply where the individual has not been appointed to another post in the Civil or Public Service or in an international body.

A Secretary General is appointed for a fixed term which, as a result of the individual's age at the date of appointment, expires before age 65, and in many cases before age 60. In circumstances where an individual is obliged to retire at the end of his/her term and before age 65, a severance payment and enhanced retirement benefits may be granted, subject to certain conditions, in recognition of the fact that the individual has foregone the right to continue in employment to age 65 and accrue further pension benefits. These terms are designed to encourage younger people to apply for such posts who might otherwise wish to continue working until age 65.

The terms which have been approved on the appointment of Secretaries General will be honoured by this Government. These terms provide for a reassignment of the officer or the granting of superannuation terms in line with 1987 Government decision. I am conducting a full review of the TLAC terms in the context of new appointees as Secretary General. I would add that I have just published the new Single Public Service Pension Scheme Bill. This will provide for pension calculation on the basis of career-average. No enhancement of superannuation benefits will be applicable in the case of Single Scheme members in the future.

The Superannuation and Pensions Act 1963 does not cover the superannuation position of County Managers, whose terms are dealt with in section 78 of the Local Government (Superannuation) (Consolidation) Amendment Scheme 1998, as amended by Section 23 of the Local Government (Superannuation) (Consolidation) Amendment Scheme 2007 and made pursuant to section 47 of the Local Government Act 1991. This legislation is the responsibility of the Minister for Environment, Community and Local Government.

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