asked the Minister for the Public Service if he will furnish details of the non-contributory pension scheme for non-established State employees and the credits for (i) army service and (ii) previous service with local authorities and semi-State bodies.
Ceisteanna—Questions. Oral Answers. - Pension Scheme Details.
9.
As regards the first part of the question I propose with the permission of the Ceann Comhairle to circulate the details of the pension scheme in the Official Report.
As regards the second part of the question the position is that, heretofore, up to two years' pensionable service in the Defence Forces during the Emergency could be reckoned under the scheme. All pensionable service with the Defence Forces may now be reckoned, unless a pension is already payable in respect of such service or the service was terminated by dismissal. A deduction of an appropriate sum in respect of any gratuity paid under the Defence Forces pensions schemes will be made from the retiring lump sum or death gratuity under the pension scheme. Detailed arrangements for the implementation of the foregoing are presently being considered.
In principle, reckonable local authority service will also be reckoned under the scheme. Arrangements to implement this are being considered as part of a general examination of the question of transferring pension rights in the public sector, presently being undertaken. The position of previous service with semi-State bodies is being considered in this context as well.
Details of non-contributory pension scheme for non-established State employees.
1. General. The scheme applies to a person (other than an established civil servant or a person engaged under a contract for service or remunerated by way of fees or commission) who is directly employed in a full-time personal capacity by a Department or Office of State.
2. Pensionable service. All service, completed years plus odd days, between the ages of 16 and 67 (and in future the minimum age at which social welfare contributory old age pension becomes payable) remunerated from moneys provided by the Oireachtas. Service includes any period, not exceeding one year, during which an employee is in receipt of benefits under the Social Welfare Occupational Injuries Acts as a result of injury caused by accident in the course of his employment. Holders of military service pensions or service (1917-1921) medals, which are held to have been duly awarded, may reckon actual service up to age 75.
3. Attainment of pension. An employee must have at least five years' pensionable service and have attained age 65. To qualify for pension before age 65 retirement must be due to ill-health or redundancy.
4. Calculation of retirement benefits. Pension 1/80 × annual pay on last day of pensionable service (including pensionable allowances) less twice the annual equivalent of the maximum personal rate of contributory old age pension payable on last day of pensionable service to a man with no adult dependant or qualified children × service (Maximum 40 years). Lump sum 3/80 × annual pay on last day of pensionable service × service (maximum 40 years).
In the case of an employee who has not been in the same grade or whose pay has changed during the last three years of pensionable service (excluding general pay revision) average pay is taken except in cases of ill-health, retirement or death in service provided he has sufficient potential service to age 65 to avoid averaging.
5. Ill-health retirement. Additions to actual service are provided by doubling service between five and ten years and where service exceeds ten years it is increased to 20 years or, if better, increased by six years and 243 days, subject to enhanced service not exceeding what could be reckoned by age 65.
6. Referendum. Pension and lump sum are payable on the basis of service accrued to the date of discharge but payment of pension does not commence until weekly payments under the Redundancy Payments Acts cease or until employee attains 65 (or is earlier incapacitated for work on health grounds) whichever is the later. Lump sum under the scheme is not reduced by the amount of lump sum payable under the said Acts.
7. Death gratuity. No qualifying service is required and the gratuity is a year's pay or, if better, the lump sum which would be payable if employee retired on ill-health on date of death.
If a former employee dies after retirement and the total receivable by him by way of pension and lump sum is less than a year's pay a gratuity equal to the deficiency is payable.
8. Re-employment
(a) Before retiring age: Pension is cancelled and previous pensionable service is reckoned in calculating subsequent awards under the scheme. Any lump sum or death gratuity subsequently payable is reduced by the amount of the lump sum paid on initial retirement.
(b) After retiring age: If pay on re-employment plus pension exceeds the current equivalent from time to time of salary at retirement, pension is reduced by the excess. The above does not apply where re-employment is not in a Department or Office of State.
9. Preservation of benefits. On voluntary resignation after at least five years pensionable service pension and lump sum based on actual service will be preserved (and uprating in line with increases in public service pensions) until retirement age if pension rights cannot be transferred to other employment.
Do I take it that full service for members of the permanent Defence Forces will be eligible now?
I think so.
Will full eligibility be afforded to personnel who served during the Emergency years?
There is something about the Emergency. Is it dealt with under the next question?
No, this is in relation to non-contributory pensions. Will full eligibility be afforded for Emergency service under the non-contributory pension schemes?
It is dealt with in Question No. 10.
In relation to the gratuity or pension received by a member of the Defence Forces, is it that in effect only the gratuity will be repayable?
Yes, only the gratuity will be repayable.
Is the Parliamentary Secretary aware that the Department wish to upgrade this gratuity payable for Emergency service 25 or 26 times, thereby creating a claw-back loss to the individual of approximately £2,500? Does the Parliamentary Secretary consider that this is fair and reasonable for people who served the nation well in arms over the years?
I will look at this.
Further arising——
A final question, Deputy.
In relation to the pension is the gratuity which personnel receive for Emergency service taken into consideration in the same way as pensions.
Yes.
Will this gratuity be clawed back on the same basis as are pensions?
Yes.
Multiplied by 25 or 26?
10.
asked the Minister for the Public Service if he will arrange for the full period of Army Emergency service to be reflected in the awards of non-contributory pensions to non-established State employees.
Pensionable service with the Defence Forces during the Emergency may now be reckoned in full under the non-contributory pension scheme for non-established State employees unless a pension is already payable in respect of such service or the service was terminated by dismissal. A deduction of an appropriate sum in respect of any gratuity paid under the Defence Forces pensions schemes will be made from a retiring lump-sum or death gratuity granted under the pension scheme. Arrangements are being made to implement this improvement in the scheme as soon as practicable.
Pensioners who have come out recently have been given only two years' credit for Emergency service. Will this new scheme now be reflected in their pensions? Will they get five years' credit? Even though the decision was made before this announcement, will there be an adjustment in pensions already granted?
I will look into it, but I think yes is the answer.
Will it be possible for a person to combine years of service in the Emergency with years of service in a local authority to achieve a higher pension?
That is right, yes.
Will Emergency service get full credit?
Emergency service will get the full credit.
That is the 1939 to 1945 period.