asked the Minister for the Public Service the number of public service pensioners being paid pensions by the State; the cost of the present scheme; and if he feels any further amendments to the present scheme are necessary.
Written Answers. - Public Service Pension Scheme.
24.
The superannuation Vote for which my Department is responsible relates to the Civil Service only. The number of retired civil servants in receipt of pensions from this Vote is approximately 8,000. Pensions are also paid from this Vote to the spouses of approximately 3,300 deceased civil servants. The current annual cost of these pensions is about £41.33 million. As regard amendments to the scheme, the Deputy will have noted the pension concessions referred to in the recent Budget Statement by the Minister for Finance. These concessions which apply to the public service as a whole are as follows:
Firstly, the Government have decided, in the context of the recent pay discussions with public service staff interests, that as and from 1 July of this year public service pensioners will benefit from special pay increases with effect from the same dates as these increases apply to serving staff. The previous practice was to adjust pensions once a year only, to take account of increases arising during the preceding 12 month period. The new arrangement, known as pension parity, was first introduced by the Government in 1983 in relation to general pay increases. The latest Government decision means that, for the future, pension parity will apply to all pay increases affecting public servants.
Secondly, the Government has increased the rates of pension payable under public service widow's and children's ex gratia pension schemes. In the public service generally, contributory widows' and children's pension schemes were introduced, from 1968 onwards. The ex gratia schemes provide benefits to the widows and children of staff who were excluded from the contributory schemes because they had retired or died before such schemes were introduced. Since 1979, the rates of pension payable under the ex gratia schemes have been fixed at ?ths of the rates payable under the corresponding contributory schemes. These will now be increased to 11/12ths of the contributory rates with effect from 1 January 1986 and to 100 per cent of the contributory rates with effect from 1 January 1987.