Tom Brabazon (Dublin Bay North, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

151. To ask the Minister for Public Expenditure and Reform if he has any plans to review the provisions of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012; and if he will make a statement on the matter. [16095/25]

Jack Chambers (Dublin West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The Single Public Service Pension 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 provisions of the Single Scheme are clearly set out in law and were enacted on 28 July 2012. All new-entrant public servants hired after 1 January 2013 are members of the Single Scheme. The introduction of the Single Scheme is the biggest change to public pensions since the formation of the State, and has been instrumental in ensuring the sustainability of the Public Service pension bill for decades to come, particularly in the context of rising public service employee numbers.

As the Single Scheme uses a career averaging model, a member's retirement benefits are based on a percentage of their pensionable earnings throughout their public service career as a member of the Scheme. For each pay period that a person contributes to the Scheme, they build up an amount towards their retirement benefits. The total of these amounts at retirement, with some adjustments for increases in inflation for the amounts earned earlier in a person's career, determines what a person's final retirement benefits will be. This is payable in addition to any Social Welfare pension entitlements a person may have based on the record of social insurance (PRSI) contributions they have made throughout their working life.

While career-averaging pension schemes are common across the public and private sectors, Defined Benefit schemes are no longer commonly available in the private sector, where Defined Contribution schemes are more common. It is generally agreed that Defined Benefit schemes are more beneficial for the employee.

There are currently no plans to review the provisions of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012.