Written answers
Wednesday, 15 November 2023
Department of Public Expenditure and Reform
Pension Provisions
Duncan Smith (Dublin Fingal, Labour)
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60. To ask the Minister for Public Expenditure and Reform if he is aware of the issue of Government employment contracts for Garda, fire services, and prison officers, that mandate retirement at 60 years, with no supplementary pension, despite these professions previously receiving a supplementary old age pension until reaching the State pension age; and if he will make a statement on the matter. [50218/23]
Paschal Donohoe (Dublin Central, Fine Gael)
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As of 1 January 2013, all new entrant public servants are members of the Single Public Service Pension Scheme, and this is reflected in their contracts of employment. The Single Scheme is a statutory Public Service Career-Average Defined Benefit Pension Scheme, established on 1 January 2013 under the Public Service Pensions (Single Scheme and Other Provisions) Act 2012. The entitlements of the Single Scheme are clearly set out in law and were enacted on 28 July 2012. It was designed as a key reform initiative aimed at securing the provision of affordable occupational pensions into the long term future in the public service.
Members of An Garda Síochána, firefighters, members of the Permanent Defence Force and Prison Officers are categorised as being members of the ‘Uniformed Accrual’ cohort of Single Scheme members. The uniformed grades have certain enhanced benefits that other members of the Single Scheme do not have, in recognition of their earlier retirement age, such as additional early payment of scheme benefits. This enables them to accrue more Single Scheme benefits over the expected shorter public service careers in these roles.
Once members of the ‘Uniformed Accrual’ cohort reach their normal retirement age, as provided for in Section 26 of the 2012 Act, they can retire at that earlier age and receive their occupational retirement benefits accrued at a higher rate, including their retirement lump-sum and the commencement of their pension benefit payments.
Government Policy is to facilitate longer active working lives, with the social welfare system continuing to provide a safety net for those who, for health or other reasons, are not in a position to work longer. The Single Scheme does not provide for a ‘Supplementary Pension’ to account for the fact that retirees cannot immediately access the State Pension (Contributory) between their retirement age and the State Retirement Age, as uniformed members also have the opportunity to work in other employment.
Michael Healy-Rae (Kerry, Independent)
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61. To ask the Minister for Public Expenditure and Reform her views on matters raised in correspondence (details supplied); and if he will make a statement on the matter. [50044/23]
Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy may be aware, I have overall policy responsibility in relation to public service occupational pension schemes payable to retired public servants.
For all new entrants to the public service (including members of An Garda Síochána) on or after 6 April 1995 (the date of introduction of full social insurance for public servants who now pay Class A PRSI) and before 1 January 2013 (the date of introduction of the Single Public Service Pensions Scheme) pension payment comprises of three components:
1.A Public Service Occupational Pension payable by the public service employer;An occupational supplementary pension seeks to make up the difference between the occupational pension which would have been payable had that pension not been integrated, and the occupational pension in payment when combined with any Social Insurance Benefits in payment. The payment of an occupational supplementary pension is not automatic and is subject to an individual meeting the following criteria:
2.Social Insurance benefit(s) payable, subject to eligibility, by the Department of Social Protection (DSP) and;
3.Where the Social Insurance benefit payable does not equate to the full rate of State Pension Contributory (SPC), an occupational supplementary pension may be payable by the public service employer subject to an individual meeting eligibility criteria.
- The retired public servant is not in paid employment;
- The retired public servant, due to no fault of their own, fails to qualify for Social Insurance benefit(s) or qualifies for a benefit at less that the value of the SPC; and
- The retired public servant must have reached minimum pension age or retired on grounds of ill-health.
The second condition is important to ensure no duplication of payments from public funds. To verify this condition, prior to payment of the Occupational Supplementary Pension, a retired public servant must engage with the DSP and obtain proof that they have exhausted any relevant benefits for which they may be eligible under the social insurance system. The rules surrounding qualifying for a Social Insurance benefit are a matter for the DSP.
Where an individual in receipt of an occupational supplementary pension takes up employment, for example, for one day, the supplementary pension would cease for that one day only and will be payable for the other 4 working days in the week, similar to how an entitlement to Jobseeker’s Benefit is treated. Therefore, taking up paid employment for one day in the week/year would not cause an occupational supplementary pension to cease for the whole year. The occupational supplementary pension would not be payable for that one day of paid employment. My officials have confirmed this policy with the Department of Justice. A pro-rated occupational supplementary pension is based on number of days during which the pensioner is not employed, rather than monetary amount earned, e.g. if an individual in receipt of a occupational supplementary pension takes up employment for 1 day a week, the occupational supplementary pension would be payable at 80% (i.e. 4/5th), rather than ceasing in its entirety. The onus is on the individual to notify their pension paying authority should there be any change in their employment status.
It should be noted that no Interdepartmental Working Group has been established to examine this matter, rather my officials are engaging with the relevant stakeholders in order to progress the matter. My Department is aware that there are some issues concerning the procedures for qualifying for the payment of an Occupational Supplementary Pension and we are liaising with the DSP and other key stakeholders to review the processes involved and establish if a more efficient and streamlined approach is possible.
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