Dáil Éireann debate -
Thursday, 5 Nov 1992

Vol. 424 No. 10

Ceisteanna — Questions. Written Answers. - Early Retirement Proposals for Public Service.

Donal Carey

Question:

8 Mr. Carey asked the Minister for Finance if he has had any discussions regarding the proposals to promote early retirement in the public service to open up opportunities for new entrants; and if he will make a statement on the matter.

Godfrey Timmins

Question:

38 Mr. Timmins asked the Minister for Finance whether he has assessed the impact which an early retirement programme would have on opening up opportunities in the public sector; and if he will make a statement on the matter.

Minister for Finance (Mr. B. Ahern)

With your permission, a Cheann Comhairle, I propose to take Questions Nos. 8 and 38 together.

There are already in operation in the public service two schemes which create job opportunities in the public service. These are the job sharing scheme under which a single job can be shared by two people and the scheme of career breaks under which public servants may leave their posts for periods of up to five years during which they are precluded from taking up employment in the State. Neither case gives rise to any significant additional cost to the Exchequer or the employing organisation — since the cost of paying any replacement is offset by an equivalent payroll saving.

Since early retirement generally involves immediate payment of pension (often on an enhanced basis) and any superannuation lump sum, the effect of implementing a scheme involving replacement by new recruits of those taking early retirement would be to replace a single salary by a single salary plus pension in respect of each post so vacated and to bring forward payment of any superannuation lump sum.

Accordingly, while I accept that early retirement schemes can make a valuable contribution in eliminating staffing surpluses in public service organisations, I do not consider that such schemes are an economic or cost effective means of creating vacancies to be filled by recruitment.