Written answers

Thursday, 22 June 2017

Department of Finance

Redundancy Payments

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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64. To ask the Minister for Finance if he will address a matter (details supplied) regarding voluntary redundancies; and if he will make a statement on the matter. [29320/17]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy is aware the NAMA retention and redundancy scheme was established to help safeguard NAMA’s performance during an orderly wind-down and allow NAMA to fulfill its objective of maximising value for the State.

For the benefit of those unfamiliar with NAMA's redundancy and retention scheme, the Secretary General of the Department of Finance provided a detailed note on the scheme to the Public Accounts Committee in January 2016 which can be accessed via the following link (see pages 3 - 8):  

As set out in previous responses to the Dáil, including Dáil Questions 131 and 273 of 31 January 2017 and 2 May 2017 respectively, the redundancy element is in keeping with established public sector norms; that is, two weeks statutory pay per year of service, capped at €600 per week, plus three additional weeks of base salary per year of service with an overall cap of two years base salary.

NAMA has advised that the retention portion of the scheme is being implemented in line with the stipulated parameters, which my predecessor agreed agreed with the NAMA Chairman in March 2015, regarding the quantum of any payment under the scheme, the timing of any such payment and employee eligibility under the scheme.  To be eligible for the retention scheme a NAMA employee must:

- have been identified by the NAMA Board as essential to achieving NAMA’s objectives;

- be on a specified purpose contract.  An employee is not eligible if on a permanent contract; has a right of return to the NTMA or is employed by any successor entity of NAMA;

- have a minimum of two year’s employment with NAMA at the time of redundancy

- have maintained a “fully satisfactory” rating or greater for the duration of their employment with NAMA; and

- remain with NAMA as long as required (Note: an employee will not be paid if (s)he resigns prior to the pre-agreed termination date).

Further to Parliamentary Question 273 of 2 May 2017, I am advised by NAMA that since the redundancy and retention scheme was approved by the NAMA Board in late 2015, a total of 91 members of staff assigned to NAMA have been approved for the scheme.  Fifty of the 91 approved staff exited NAMA in 2016 at a cost of €3.6m; the accrued cost for the remaining 41 of 91 approved staff is €3.9m.  To end May 2017, 6 of the 41 staff have exited under the scheme in 2017.  The scheme is ongoing as employees continue to exit throughout 2017.  

The following table provides a breakdown by division of the 91 members of staff approved for the scheme.

Asset  Recovery 53
Legal17
Finance12
Strategy/Communications3
Asset Management 3
Residential Delivery 3
Total91

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