Michael Moynihan (Cork North West, Fianna Fail)
Link to this: Individually | In context

Question 78: To ask the Minister for Public Expenditure and Reform the reason a single person in the public sector is compelled by law to pay a pension for a spouse and child even if they do not have a spouse or a child; and the way such a requirement can be justified; and if he will make a statement on the matter. [29082/11]

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context

The Commission on Public Service Pensions examined the issue of compulsory membership in its Final Report on Public Service Pensions in 2000. It did not recommend any change in the rules providing for automatic membership of the spouses' and children's schemes, nor in the refund arrangements for membership contributions.

Public service spouses' and children's schemes are structured on a group insurance basis and the member contribution rates take account of the fact that payment of benefits will not arise in respect of all members. If cessation or refund of contributions (other than in respect of contributions exceeding forty years) were to be permitted on the basis that no benefits were going to arise, this would weaken the integrity of the schemes and could undermine fundamentally the financing of the schemes.

It is generally not possible to determine that a person will never benefit from such schemes as they provide cover for marriages and civil partnerships after retirement, and adopted children and stepchildren are also covered. Also, there is now a wider range of scheme beneficiaries under the schemes than heretofore. For example, in relation to civil partnerships, Section 99 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 provides that a benefit under a pension scheme that is provided for the spouse of a scheme member is deemed to provide equally for the civil partner (as defined in the Act) of such a person.

There are no plans to make any changes with regard to contributions to existing spouses' and children's schemes. The details provided had already been sent to my Department by the person concerned in a letter dated 26 September 2011. A direct response issued on 10 October 2011.