Patrick O'Donovan (Limerick, Fine Gael)
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300. To ask the Minister for Health if there is a proposed package being considered to encourage Health Service Executive staff to retire; if there is a cut-off point for persons to signal their intent to leave the service before August to avail of the existing pension arrangements; and if he will make a statement on the matter. [1940/14]

James Reilly (Dublin North, Fine Gael)
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There is currently no package being considered to encourage staff to retire early. The Government has decided that the numbers employed across the public service must be reduced in order to meet its fiscal and budgetary targets. The health sector must make its contribution to that reduction. This policy requires the health service to reduce its workforce to 94,209 wholetime equivalent employees (WTE) by the end of 2014. This employment ceiling is net of some 4,000 staff who moved to the new Child and Family agency from 1st January 2014. The ceiling represents a further reduction of 983 posts in 2014 compared with the end 2013 ceiling for the HSE. However, as the end 2013 ceiling was exceeded by 1,026 the total reduction required in 2014 is 2,009.

TheFinancial Emergency Measures in the Public InterestAct 2013 provides for a "grace period" from 1 July 2013 to the end of August 2014. This is not an early retirement package. During this period those retiring and who were subject to the pay reductions under the Act will have their superannuation benefits calculated by reference to the salary scales which applied on 30 June 2013 and will have the revised increment position disregarded. It is envisaged that this will act as an incentive in encouraging staff to retire in advance of the deadline.

In 2013 my Department authorised the introduction of a Targeted Voluntary Redundancy Facility in the HSE and in organisations funded by the HSE under Section 38 of the Health Act 2004. The purpose is to achieve a permanent reduction in numbers and to facilitate ongoing health sector reform. Voluntary Redundancy will give many managers greater flexibility in implementing the measures needed to remain within reduced budgets and staff ceilings. It will provide scope to reduce employee numbers in the context of changing health sector structures and health reforms. The Voluntary Redundancy Facility has been made available from 1st January 2014.

The Voluntary Redundancy Facility will be implemented on a rolling basis as appropriate areas and functions are identified. It is important to emphasise that there is no automatic right to voluntary redundancy; staff may be offered Voluntary Redundancy in the context of current and future business needs and service provision priorities. The HSE will operate the employees Targeted Voluntary Redundancy Facility in 2014 and subsequent years as a key element in the reform of the health service. It will enable the HSE and other service providers to maximise the quantum and quality of services provided with the resources available. The period of notice required for persons to signal their intent to retire is dependent on the individual's contract of employment.