Written answers

Tuesday, 25 June 2024

Department of Public Expenditure and Reform

Public Sector Pensions

Photo of Seán HaugheySeán Haughey (Dublin Bay North, Fianna Fail)
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150. To ask the Minister for Public Expenditure and Reform the details of the changes to public service pensions introduced for pre-1995 public servants; the number of public servants affected by these changes; and if he will make a statement on the matter. [27124/24]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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In 1995, the Government decided that full social insurance should be extended to all newly appointed civil and public servants and that they should pay a full Class A social insurance contribution. Where a public servant is fully insured, their occupational pension is integrated with the State Pension i.e. account is taken of any Social Insurance benefits payable. The main difference between pre-1995 and post-1995 public service pensions, is that, in general, post-1995 occupational pensions are integrated with social insurance benefits such as the state pension contributory (SPC). For all public servants who are fully insured (Class A PRSI) and who have been appointed before 1 January 2013 (introduction of Single Scheme) pension payment comprises of three components:

  1. Public Service Occupational Pension payable by the public service employer from Voted expenditure, the calculation of which takes account of Social Insurance benefits that may be payable to the individual,
  2. Social Insurance Benefit(s) (Jobseeker’s Benefit, State Pension Contributory (SPC) etc.), payable, subject to eligibility, by the Department of Social Protection (DSP) from the Social Insurance Fund and
  3. Where the full rate of SPC is not payable, an occupational supplementary pension may be payable, subject to eligibility, to bring the total pension package up to the equivalent of a non-integrated pension i.e. a pension based on 1/80th per year of service to max of 40 years. The occupational supplementary pension is payable, by the public service employer from Voted expenditure.
Where the recipient of an integrated public service pension does not qualify for a social insurance benefit or qualifies at less than the value of the full State Pension Contributory (SPC) they may be entitled to an occupational supplementary pension subject to meeting certain criteria. The occupational supplementary pension is not paid automatically; the public service pensioner must apply for an occupational supplementary pension. The public service pensioner must have reached minimum pension age in accordance with their pension scheme rules and be in receipt of their occupational pension. In addition, the grant of an occupational supplementary pension is conditional upon a number criteria as follows:
  1. The individual must not be engaged in full time paid employment;
  2. The individual must not qualify for social insurance benefit or fail to qualify for such benefit at the maximum rate; and
  3. The failure to qualify for a social insurance benefit must be due to causes outside his or her control.
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 Department of Social Protection and obtain proof that they have exhausted any relevant benefits for which they may be eligible under the social insurance system.Currently there are less than 5,000 public service pensioners in receipt of an occupational supplementary pension, but this is expected to increase over the coming years as more fully insured public servants reach minimum pension age.If you have any further questions in relation to these matters, I would be happy to provide any additional clarification needed.

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