Pádraig O'Sullivan (Cork North-Central, Fianna Fail)
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356. To ask the Minister for Public Expenditure and Reform the methodology and calculations used by his Department in assessing a professional added years application, submitted by a public sector employer on behalf of an employee, where such employee is classified as a "new entrant" per Government Circular 8/2005; and if he will make a statement on the matter. [52055/25]

Jack Chambers (Dublin West, Fianna Fail)
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Professional Added Years (PAY) schemes apply to certain members of pre-existing public service pension schemes recruited by way of open competition to professional, technical or specialist permanent posts in the civil/public service.

The ‘New Entrant Scheme’ was introduced under Circular 8/2005 and applies to persons appointed to established professional, technical or specialist posts from a competition advertised on or after 1 April 2005, who are New Entrants in accordance with the Public Service Superannuation (Miscellaneous Provisions) Act 2004.

An award of PAY may be made where a permanent, pensionable employee was recruited to a professional, technical or specialist post by way of open competition and:

(i) (a) minimum professional, technical or specialist qualifications and/or a minimum number of years essential experience were required for entry; or

(b) the minimum entry age specified in the competition was over 25;

and

(ii) by reason of those entry requirements it is not possible for the individual to secure 40 years' service by the age of 65 years (or the age specified in the PAY scheme rules).

The maximum gross PAY award available is 5 years under the New Entrant Scheme. A PAY award may also be limited based on an individual’s actual service and is subject to the individual’s total reckonable service not exceeding 40 years.

As is typical with PAY schemes, any gross award of PAY will be reduced in accordance with the scheme rules governing abatement in respect of:

1. Previous service with the body: where the employee has service with the body at any time prior to obtaining the added years post. (However, relevant non-transferable experience in other employment (e.g. private sector) may be used to off-set such abatement).

2. Transferred/transferable service: where the employee has previous service in another organisation which has been, or could be, transferred to the current employment. (However, relevant non-transferable experience in other employment (e.g. private sector) may be used to off-set such abatement).

3. Retained benefits: where the employee has retained superannuation benefits, (e. g. has a preserved pension entitlement or other superannuation benefit or is receiving a pension from previous employment). Abatement in respect of compulsory refunds of superannuation contributions will not apply in certain cases.

4. Awards will be abated pro-rata in the case of career breaks/unpaid leave and work-sharing.

5. Retirement/resignation before age 60: awards (abated on a pro-rata basis in accordance with the provisions of the Circular, paragraph 13 refers) may be granted in the case of employees retiring before age 60 or resigning before age 60 with preserved benefits.