Written answers

Tuesday, 9 October 2018

Department of Public Expenditure and Reform

Public Sector Pay

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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74. To ask the Minister for Public Expenditure and Reform if public sector employees that are to be allowed to work beyond 65 years of age in certain circumstances will continue to be paid at the point on the increment scale they were at when they reached 65 years of age; the position in this regard; and if he will make a statement on the matter. [41025/18]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy will be aware, the Public Service Superannuation (Age of Retirement) Bill 2018, which was published on 9 July, provides for an increase in the compulsory retirement age to 70, for public servants recruited prior to 1 April 2004. These public servants currently have a compulsory retirement age of 65. The Bill passed all stages in the Seanad on 17 July and is being treated as a priority with the intention to secure enactment of the legislation as early as possible in the current term.

Once the Bill is enacted and commenced, the majority of public servants recruited prior to 1 April 2004 will have a new compulsory retirement age of 70. For the most part, these public servants currently have a compulsory retirement age of 65

Until the commencement of the Bill, the current compulsory retirement age will continue to apply and public servants reaching the age of 65 will be required to retire. The interim arrangements will, however, continue to apply until the Bill is commenced. The interim arrangements, which have to respect the current statutory position of the compulsory retirement age of 65, allow pre 2004 public servants to retire and be rehired for one year, until they reach the age of 66. Payment under the interim arrangements is generally at the minimum point of the relevant pay scale in line with current retire and rehire arrangements.

The practice of payment at the minimum point will not apply to public servants who choose to remain beyond the age of 65 once the legislation is commenced. Public servants who reach the age of 65 after the commencement of the Bill will be able to remain at work past the age of 65 on current terms and conditions, including pay, up to the age of 70.

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