Brendan Griffin (Kerry South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

374. To ask the Minister for Public Expenditure and Reform his plans to extend early retirement schemes in the public service beyond June 2015; and if he will make a statement on the matter. [41920/14]

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

I assume the Deputy is referring to the provision under the Financial Emergency Measures in the Public Interest Act 2013 relating to what is known as the grace period for retirement for those affected by the pay reductions under the Act. 

Section 9 of the Financial Emergency Measures in the Public Interest Act 2013 provides that persons retiring before 31 August 2014, or a later date made by Order under the Act, will be entitled to have their pensions calculated as if the pay reduction and any increment pause or freeze had not applied to them. As the Deputy is aware, I have extended the grace period from 31 August 2014 to 30 June 2015.  Therefore, those retiring in the period up to June 2015 on salaries that were subject to a further salary reduction from 1 July 2013 (i.e. those on salaries in excess of €65,000 p.a.)  will have their pension benefits calculated on their pre cut salaries. However, for those in receipt of annual pensions of €32,500 or more their pension payments will be subject to the Public Service Pension Reduction  rates provided for in the 2013 Act.

In order to ensure that the impact would be effectively managed across all sectors, the approach I have taken in extending the grace period to June 2015 assisted sectoral management in the implementation of workforce planning measures, in order to maintain service delivery standards and minimise any potential adverse affect on services that may arise. In line with the on going management of all retirements within the public service, those public servants electing to retire and avail of the grace period are required to give appropriate notice. I have no current plans to extend the grace period beyond June 2015.