Thursday, 14 November 2019
Department of Public Expenditure and Reform
20. To ask the Minister for Public Expenditure and Reform the estimated cost in one full year of providing funding for a pension scheme for community employment supervisors in line with a previous Labour Court recommendation of 2008 (details supplied); and if he will make a statement on the matter. [46803/19]
This issue relates to a claim by community employment supervisors and assistant supervisors who have been seeking, through their union representatives, the allocation of Exchequer funding to implement a 2008 Labour Court recommendation relating to the provision of a pension scheme.
The matter was the subject of extensive discussion at the Community Sector High Level Forum which was reconvened to examine certain issues pertaining to the Community Employment sector and in particular to ensure that the matter was fully examined having regard to both costs and precedent in the context of the wider Community and Voluntary sector.
The membership of this Forum includes public service management and union representatives. It will be appreciated that the implications arising from this claim extend well beyond the CE Supervisors and Assistant Supervisors cadre and impact across the entire Community and Voluntary sector. It is accordingly appropriate that the wider sector implications should be fully taken into account in considering the cost implications arising from this issue.
Taking this important consideration into account it is accordingly the position that a detailed scoping exercise was carried out by my Department in 2017 in order to comprehensively examine and assess the full potential implications of the issues involved.
The scoping exercise clearly illustrated that this matter presents very significant issues for the Exchequer, with a potential cost exposure for the State of between €188 million per annum and €347m depending on the size of the sector which is difficult to ascertain, were consequential demands to be made to fund employer pension contributions for all similar State funded Community and Voluntary organisations whose employees are in a similar position to the Community Employment scheme supervisors. This excludes any provision for immediate ex-gratia lump sum payment of pension for those imminently retiring, as sought, which could, depending on the size of the sector, give rise to a further Exchequer cost exposure of up to €318 million.
To fund an employer pension contribution for CE Supervisors and Assistant Supervisors alone would cost the State an estimated €6m per annum, excluding any provision for immediate ex-gratia lump sum payments, estimated at a further €19.2m before administration/implementation costs.
While CE supervisors and assistant supervisors represent only a very small part of the wider community and voluntary sector, any explicit provision of State funding for such a scheme in respect of those employees would inevitably give rise to claims for similar schemes and funding provision on the part of those many thousands of workers in the broader sector. My Department has to have regard to the full potential Exchequer exposure associated with setting such a precedent.
It continues to be the position that state organisations are not the employer of the particular employees concerned and accordingly it is not for the State to provide funding for occupational pension scheme provision.