Catherine Murphy (Kildare North, Independent)
Link to this: Individually | In context

Question 75: To ask the Minister for Public Expenditure and Reform if he will provide the estimated total amount of pension lump sum payable to public servants who will retire in the coming months under the terms of the incentivised scheme for early retirement; the average lump sum payable per retiree based on estimated numbers who will avail of the scheme; and if he will make a statement on the matter. [3727/12]

Catherine Murphy (Kildare North, Independent)
Link to this: Individually | In context

Question 82: To ask the Minister for Public Expenditure and Reform the total number of public servants who have applied to retire under the terms of the incentivised scheme for early retirement; the estimated number who will avail of the scheme by the 29 February deadline; the breakdown of the former figure by employer that is Department, agency, organisation or otherwise; and if he will make a statement on the matter. [3726/12]

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

I propose to take Questions Nos. 75 and 82 together.

There are no incentivised schemes for early retirement in operation at present in the public or civil service. Many of the retirements at this stage are occurring in the normal course where an individual has reached retirement age. There are also cases where individuals are availing of "cost-neutral early retirement", which allows retirement earlier than normal retirement age, but with an off-setting actuarial reduction applied to the individual's lump sum and pension.

When public service salaries were reduced in 2010, it was agreed by the then Government that persons retiring during a transitional or "grace" period would have their retirement benefits calculated on the basis of the previous payscale levels before the salary cut. That grace period will now expire on 29 February 2012. Persons retiring from 1 March 2012 onwards will have their retirement benefits calculated on the basis of their actual, reduced pay scale.

The total number of applications to retire by the end of February is currently around 4,000, excluding the Health Sector. The sectoral breakdown of this numbers is as follows:

Education Sector 2,000

Civil Service 794

Local Authorities 730

Defence Forces 192

Gardaí 298

About 3,500 are expected to retire in the Health Sector over the period September 2011 – February 2012.

These figures are based on data reported by all the public service employers about the number of retirement applications received. Of course, in some instances staff will withdraw their application to retire due to personal circumstances. There are also cases where individuals who wish to retire have not given the full 3 months notice requested by the employer. Provision of just over €600 million has been made in the 2012 Estimates to cover pension lump sum payments in 2012.