Written answers

Wednesday, 7 December 2011

Department of Public Expenditure and Reform

Pension Provisions

10:00 pm

Photo of Joanna TuffyJoanna Tuffy (Dublin Mid West, Labour)
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Question 26: To ask the Minister for Public Expenditure and Reform his plans to conduct a review of the revised spouses and children pension scheme; if he will look at a situation whereby a single person who is working in the public service is obliged to contribute 1.5% of his or her salary to the scheme, regardless of marital status; the reason a person, who remains unmarried on retirement and thereafter, without a spouse or children, is not refunded his or her contributions to this particular scheme; and if he will make a statement on the matter. [39069/11]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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There are no plans to make any changes with regard to contributions to existing spouses' and children's schemes. The Commission on Public Service Pensions examined the issue of compulsory membership in its Final Report on Public Service Pensions. 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.

Photo of Brian WalshBrian Walsh (Galway West, Fine Gael)
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Question 27: To ask the Minister for Public Expenditure and Reform the number of persons who availed of the incentivised scheme for early retirement and are now aged under 60; and if he will consider bringing forward payment of the balance of the lump sum in these instances in view of the unforeseen impact that the public service pension levy and the introduction of the universal social charge have had in many of these cases. [39125/11]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Information regarding the total number of retirees from the Civil/Public Service under the Incentivised Scheme of Early Retirement (ISER) who have not yet reached age 60 is not available in my Department. However, for the Civil Service for which I have direct responsibility, it is estimated that there are approximately 730 ISER retirees under the age of 60. The total amount of the retirement lump sums due to be paid to this group is estimated at almost €60 million. The terms of the Scheme provide that the balance of the retirement lump will be payable upon the retiree reaching his/her normal preserved pension age. There is no provision in the Scheme to allow payment to be brought forward.

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