Billy Kelleher (Cork North Central, Fianna Fail)
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Question 214: To ask the Minister for Health if he will provide, in tabular form, the numbers of staff of each grade projected to leave each area of the health service; and if he will make a statement on the matter. [15936/12]

James Reilly (Dublin North, Fine Gael)
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As this is a service matter, it has been referred to the HSE for attention and direct reply to the Deputy.

Billy Kelleher (Cork North Central, Fianna Fail)
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Question 215: To ask the Minister for Health the original cost projections of the early retirement scheme; the new cost projections; if he expects frontline services to be affected by the scheme being oversubscribed; and if he will make a statement on the matter. [15937/12]

James Reilly (Dublin North, Fine Gael)
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The National Service Plan was based on an assumption that 3,000 whole-time-equivalent staff or some 3,500 people would leave following the ending of the "grace period" which is not an early retirement scheme.

As set out in the National Service Plan, the estimated additional cost of these retirements comprised:

– An increase of €44m for lump sum costs.

– Additional cost of funding pensions of €68m.

– Estimated loss of salary contributions for superannuation and the pension levy amounting to €18.9m.

– A provision of €16m has been built in to a replacement factor for critical posts. The number of posts which can be supported by this funding depends on the salaries of those being appointed.

Whilst additional funding was provided through the Estimate process for the once-off additional cost of the lump sums, the other costs will be met by the HSE from the consequent payroll savings of those leaving. The figures in the Estimates assumed that the net saving to the Exchequer would amount to €57m.

The latest figures available from the HSE indicate that some 4,500 personnel retired between September 2011 and February 2012. Once the data on actual lump sums and pensions is available, the HSE will be in a position to run a new cost estimate associated with this level of retirements. It is possible that there may be a growth in costs although some of these lump sums will have already been paid in 2011. The Executive still has to determine how many of the retirees were actually on the payroll on retirement as this will have a consequent effect on the payroll savings associated with the retirements. In addition, staff with premium pay or allowances, are entitled to the 'best 3 years out of the last 10' to be reckoned for pension purposes, which requires 10 years payroll records to be examined for each person. In a recent sample of 413 retirees, 87% had premium pay or allowances. In this context it may be some time before the HSE can accurately determine the full financial impact of the retirements.

Planning for the impact of the end of the "grace period" began last autumn. Contingency plans have been developed locally for hospital and community services, reflecting risk assessments undertaken by each hospital/community manager. These have been reviewed at regional and national levels to ensure appropriate measures are in place across all services, with the focus on protecting and maintaining critical front-line services.

In order to achieve this, it is essential that changes in work practices and in how services are organised are pursued in the first instance. These include staff redeployment, streamlining of management structures, changing business processes and integrating services, as well as rostering and skill-mix changes. Some recruitment of new staff is also taking place, to ensure that key specialist services are maintained.