Written answers

Wednesday, 17 January 2024

Department of Public Expenditure and Reform

Civil Service

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
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393. To ask the Minister for Public Expenditure and Reform the reason the widows and orphans/spouses and children's superannuation scheme is compulsory within the civil service, yet is optional in public sector organisations such as the HSE; his plans to make this optional within the civil service for staff without dependents; and if he will make a statement on the matter. [57389/23]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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As you may be aware, I have overall policy responsibility in relation to public service occupational pension schemes. However, specific sectoral pension schemes in the wider public service are a matter for the Minister of the parent Department for the body concerned, in this case the Minister for Health.

The specifics of some of the below material therefore relates to the history of the civil service Spouses' and Children's Scheme (S&C Scheme), for which I hold primary responsibility.

  • When the ‘Original’ S&C Scheme (formerly named widows’ and orphans’ contributory pension scheme) was introduced for male civil servants in the late 1960's and for female civil servants in 1981, the beneficiaries were confined to the spouses and children of marriages that took place prior to the individual leaving public service employment.
  • The Revised Spouses and Children’s Superannuation Scheme was introduced in 1984. Membership of this scheme is mandatory for anybody who joined the civil service as a new entrant after 1 September 1984.
Following each of these launches, membership of the applicable S&C Scheme was made optional for serving staff, but mandatory for new entrants.

Revised versions of the applicable S&C Schemes were also introduced from the mid-80s onwards in many parts of the public service, and membership was similarly mandatory for new entrants. The Local Government Employees (Spouses and Children’s Contributory Pension) Scheme, 1986 is an example of this.

The revised S&C Scheme is structured on a group insurance basis and the member contribution rates take account of the fact that payment of benefits will not arise in respect of all members. If each scheme member who did not derive a benefit from the S&C scheme were to be granted a refund of their S&C contributions, this would significantly undermine the financing of the scheme and potentially result in an inflated contribution falling on beneficiaries who do derive a benefit from the scheme. The nature of the scheme is such that it provides for contingent benefits.

The Revised Scheme which was introduced in agreement with staff interests, extended the benefits payable to include post-retirement marriages and also extended the children's benefit to include adoptive, post-retirement/resignation and non-marital children of the member.

Member contributions are compulsory under the Revised Scheme and there are no exemptions available based on marital or parental status. In certain circumstances where a member has in excess of 40 years' service, they are entitled to a refund in respect of the excess period only, starting with the initial contributions paid.

For members of the Single Public Service Pension Scheme (the Single Scheme), membership of a separate S&C Scheme attached to their main pension scheme is not applicable, as provision of survivor benefits is embedded in the main scheme and accounted for in the relevant contribution rates. Membership of the Single Scheme is mandatory for all new entrants to the public service since 2013 including HSE staff.

There are no plans to make membership of civil service S&C schemes, or the survivor benefits provisions in the Single Scheme, optional for civil service members.

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