Written answers

Thursday, 5 June 2014

Department of Social Protection

Public Sector Staff Retirements

Photo of Joan CollinsJoan Collins (Dublin South Central, United Left)
Link to this: Individually | In context | Oireachtas source

66. To ask the Minister for Social Protection the number of public service employees that have been forced out of employment at age 65, from 1 January 2014 to date, who do not have a contributory pension entitlement until age 66; and if any of these persons have been adversely effected by the PRSI band changes. [23988/14]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
Link to this: Individually | In context | Oireachtas source

At the outset, the Deputy may wish to note that the terms and conditions of employment of civil and public servants, including the age at which they may be required to retire, and the public service pension they may qualify for, are the responsibility of my colleague, Mr Brendan Howlin, T.D. Minister for Public Expenditure and Reform.

The Social Welfare and Pensions Act, 2011 provides that State pension age will be increased gradually to 68 years. This began in January 2014 with the standardising of State pension age for all at 66 years and the cessation of State pension transition. The State pension age will increase to 67 years in 2021 and to 68 years in 2028.

I am informed by the Department of Public Expenditure and Reform that the specific compulsory retirement age and minimum pension age provisions which affect an individual public servant will reflect his or her particular employment sector and time of original recruitment. Public servants who must retire at age 65 can draw their public service pension at age 65. The State pension changes have no impact on such persons where they are in the modified social insurance category.

Where alternatively they are in the full social insurance category their public service pensions (and contributions) are, as with many occupational schemes, integrated (or co-ordinated) with social welfare benefits. This means the occupational pension paid is based on the assumption that the pensioner also receives the State pension. The State pension (contributory) entitlement is calculated with reference to the complete PRSI record, including contributions made while working in the public and private sectors, and it would not be possible for my Department to state how many, if any, such retirees have been impacted by changes to the State pension (contributory).

In the case of retirements of fully insured public servants at age 65, a discretionary supplementary pension may be payable under the rules of the public service scheme to bridge the gap until State Pension commencement at age 66 years. This supplementary pension is only payable where the individual, through no fault of his own or her own, does not qualify for social welfare benefit or qualifies at less than the maximum personal rate.

It is therefore necessary to claim the available social welfare benefits in order to receive a supplementary pension. This situation is not new and already applies to public servants with a retirement age below 65 years.

Comments

No comments

Log in or join to post a public comment.