Written answers

Wednesday, 1 July 2015

Department of Public Expenditure and Reform

Exchequer Savings

Photo of Mary Lou McDonaldMary Lou McDonald (Dublin Central, Sinn Fein)
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85. To ask the Minister for Public Expenditure and Reform the annual saving to the Exchequer if all public sector salaries gross and net, excluding hospital consultants over €100,000, were reduced as follows: full-year amount of remuneration for any amount over €100,000 but not over €150,000, reduction 15%; and a full-year amount of remuneration for any amount over €150,000, reduction 30%. [26609/15]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Based on the information currently available to my Department, the estimated full year gross saving in the Exchequer and Local Government pay bill arising from a reduction in public service salaries (excluding hospital consultants) for amounts over €100,000 of 15% and amounts over €150,000 of 30% is some €11.2m. This does not take account of any offsetting reductions in taxes and levies. As the combined effect of the estimated marginal tax rate and the pension related reduction at a pay level for a public servant of €100,000 p.a. or higher is at least 62.5%, the estimated net savings would be reduced to less than €4.2m.

Photo of Mary Lou McDonaldMary Lou McDonald (Dublin Central, Sinn Fein)
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86. To ask the Minister for Public Expenditure and Reform the annual saving to the Exchequer if the following Top Level Appointments Commission terms were removed from all currently serving Secretaries General, special severance pension payment to the value of half a year’s pay; and retiring on a full pension with ten added years. [26612/15]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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There are currently 8 Secretaries-General (and equivalents) who by virtue of their appointment prior to reforms introduced by me in 2011, retain the "old TLAC terms" which entitles them to a severance payment of 6 months' salary and up to 10 added years' service.

There are 3 levels of Secretary-General in pay terms with different pay rates. The pay rate would also be dependent on whether or not an individual was Integrated (Personal Pension Contribution- PPC) or modified (Non-Personal Pension contribution).

-Modified (Non-PPC)Integrated (PPC)
Grade6 months' salary6 months' salary
Secretary General Level I€92,675€92,675
Secretary General Level II€88,175€92,675
Secretary General Level III€83,650€87,938.50

The amount of added years, if any, awarded will depend on the particular career history and pay point of each individual. Any added years awarded will impact on pension and lump sum entitlements. The cost of 1 added year and 10 added years in terms of pension and lump sum is as follows:

Grade1 Added Year Pension1 Added Year Lump Sum10 Added Years Pension10 Added Years Lump Sum
Secretary General Level INon-PPC€2,316.88€6,950.63€23,168.75€69,506.25
Secretary General Level II Non-PPC€2,204.38€6,613.13€22,043.75€66,131.25
Secretary General Level IIINon-PPC€2,091.25€6,273.75€20,912.50€62,737.50
Secretary General Level IPPC€2,316.88€6,950.63€23,168.75€69,506.25
Secretary General Level IIPPC€2,316.88€6,950.63€23,168.75€69,506.25
Secretary General Level IIIPPC€2,198.46€6,595.39€21,984.63€65,953.88

I understand that, in most cases, the relevant individuals will be substantially less than 10 years short of the full 40 years service requirement when they are due to retire, so the issue of 10 added years would not arise in those cases. However, this calculation can only be done on their retirement.

Photo of Mary Lou McDonaldMary Lou McDonald (Dublin Central, Sinn Fein)
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87. To ask the Minister for Public Expenditure and Reform the annual saving to the Exchequer by reducing all non-commercial State-sponsored bodies' chief executive officers' salaries by 10%. [26613/15]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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My Department currently holds information on the salary rates being paid to Chief Executive Officers of some 60 non-commercial State-sponsored bodies. A 10% reduction in the salaries paid to those CEOs would amount to around €767,000.

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