asked the Minister for the Public Service if he will outline to the House the operation and financial arrangements for funding Civil Service pensions; if he will give an assurance that no pending difficulties exist or are foreseen; if the present scheme has been examined by actuaries and, if so, their conclusions; if he feels it is possible that difficulties may arise in 30 years time with an increased number of people retiring; and if so, the action the Government intend to take to offset these funding problems.
Ceisteanna — Questions. Oral Answers. - Civil Service Pensions.
28.
Civil Service pensions are financed on a pay-as-you-go basis as distinct from a funded basis. The question of future funding problems does not therefore, arise. As regards the annual cost of these pensions, my Department recently completed a study which has been actuarially examined and which concludes that no significant change in real terms is expected over the next 30 years. Thereafter, because of age structures, there may be a significant increase and this aspect is being further examined in my Department.
Can I take it that actuarial studies have been carried out in respect of the life span of the present Civil Service workforce and that difficulties are not foreseen or any evidence in the actuarial advice that would cause concern?
Some studies have been completed and further studies are under way in the Department. They have been and are being checked with actuarial advice. Any suggestion that there is a problem of any proportion now, up to the end of the century or during the next 30 years, is totally without foundation. I take this opportunity to put it on the record of the House in case undue concern may have been caused to our public servants. Thereafter, there are some indications that there may be some increases in payment involved but our studies indicate that any such increases will be of manageable proportions. I repeat that there is no cause whatever for alarm.
There have been some outbursts about this recently and, to allay fears, would the Minister consider making public the actuarial advice which the Department have received, and the conclusions on that advice? People are concerned and have been in the last year or two because pension schemes have collapsed in other areas. If there are no problems here, could the conclusions be made public or at least made available to the staff negotiating committees?
I reiterate that there is absolutely no cause for concern or alarm. I will look into the Deputy's suggestion about support for those who might have concern.