Written answers
Tuesday, 25 June 2024
Department of Public Expenditure and Reform
Public Sector Pensions
Seán 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]
Paschal 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:
- 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,
- 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
- 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.
- The individual must not be engaged in full time paid employment;
- The individual must not qualify for social insurance benefit or fail to qualify for such benefit at the maximum rate; and
- The failure to qualify for a social insurance benefit must be due to causes outside his or her control.
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