I am aware that most teachers retire before attaining age 65. The tendency of teachers and other public servants to retire before compulsory retirement age is one of the factors which has contributed to increased expenditure on public service pensions. Another major factor leading to increased expenditure is that average life expectancy is increasing. It was principally because of the rising cost of public service pensions that the Government decided in 1996 to establish a commission to review and report on the existing provisions for public servants. The proposal that a standard retirement age of 65 be introduced for new entrants to the public service, including teachers, is one of the recommendations contained in the commission's final report which was published in January 2001.
The Government has accepted the broad thrust of the package of reforms recommended by the commission and, as provided for in the Programme for Prosperity and Fairness, has established a working group to advise on the implementation of the commission's recommendations. The working group, which consists of representatives of the public service unions, including the INTO and TUI, and relevant Departments, including the Department of Finance and my Department, has met on a regular basis and it is hoped the group will be in a position to report before the end of the year. The operational details of the implementation of the commission's recommendations will be determined by the Government following receipt of the report of the working group.
The report of the commission records that the three members who were representatives of the public service unions were unable to agree with the recommendation that a standard retirement age of 65 be introduced. They accepted the desirability of increasing the age at which public servants would actually retire, but they felt this should be achieved by providing incentives for staff to stay in employment, for example, by being able to accrue more than 40 years' service for pension purposes. The reservations expressed are being considered by the implementation working group.