Written answers

Tuesday, 2 October 2012

Department of Public Expenditure and Reform

Public Sector Pensions Legislation

Photo of Derek KeatingDerek Keating (Dublin Mid West, Fine Gael)
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To ask the Minister for Public Expenditure and Reform if he will consider making the compulsory payment of the spouses' and children's contributory pension scheme within the Civil Service a voluntary payment thereby reducing the deductions in civil servants’ salaries; and if he will make a statement on the matter. [41908/12]

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 Deputy may be aware that the Commission on Public Service Pensions examined the issue of compulsory pension scheme membership in its Final Report on Public Service Pensions in 2000. It did not recommend any change either in the rules providing for automatic membership of the spouses' and children's schemes or in the refund arrangements for membership contributions.

Public Service spouses' and children's schemes are generally 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. It is also to be noted there is now a wider range of scheme beneficiaries under the schemes than heretofore. The Revised Spouses' and Children's Schemes, introduced in most parts of the Public Service in 1984 or shortly afterwards, provide cover for marriages and children born after retirement. 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 person is deemed to provide equally for the civil partner (as defined in the Act) of a person.

If contributions to the scheme were to be made voluntary – or indeed if full refund of contributions was to be permitted if a person was single at retirement, as had been the position before 1984 this would weaken the integrity of the schemes and could undermine fundamentally the financing of the scheme.

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