Written answers

Tuesday, 11 July 2017

Department of Public Expenditure and Reform

Pension Provisions

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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177. To ask the Minister for Public Expenditure and Reform the basis on which the spouses and children's pension scheme contribution needs to be repaid in the case of a person (details supplied); the relevant legislation governing the repayment of the spouses and children's pension scheme in such circumstances; and if he will make a statement on the matter. [32801/17]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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The original spouses’ and children’s pension scheme for the civil service was  put in place by way of SI 132 of 1977  and the revised scheme was put in place by way of circular 16 of 1984 , which has statutory underpinning in the Civil Service Regulation Act 1956. 

Under the terms of the scheme, any period of service for which periodic contributions have not been made by means of deduction from salary is subject to the payment of non-periodic contribution.  In accordance with scheme rules, the level of contribution is calculated at retirement on the basis of 1% of final pensionable remuneration in respect of each years.  The rules governing non-periodic contributions are set out in circular 16 of 1984. 

The person referred to by the Deputy re-entered employment in the civil service with the Revenue Commissioners in 2002.  She raised a case with PeoplePoint in December 2015 asking how much it would cost her to pay back her marriage gratuity.

On 22 January 2016, the person was advised of the cost of repaying the marriage gratuity at that time and also that she could opt instead to repay the gratuity from her retirement lump sum at the time of her retirement, on the basis that the marriage gratuity would continue to accrue compound interest until date of retirement.

She was also advised that there was a further charge owing towards the Spouses and Children’s scheme in respect of the period for which she had received the marriage gratuity.  This could be effected either by way of lump sum deduction from retirement lump sum, or doubling up on Spouses & Children’s contributions for a period equal to that for which she had received the marriage gratuity.

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