Vol. 577 No. 5
83 Mr. Naughten asked the Minister for Education and Science if he will implement the recommendations of the report of the commission on public service pensions with regard to second level teachers; and if he will make a statement on the matter. [31797/03]
The Commission on Public Service Pensions examined and reported on the pension arrangements of public servants generally. The implementation of the Commission's recommendations is a matter in the first place for my colleague, the Minister for Finance.
As part of budget 2004, the Minister for Finance announced certain changes decided on by Government to pension arrangements in the public service. These changes largely represent the implementation of recommendations of the Pensions Commission; these recommendations were themselves the subject of a further report by a joint management-union working group which reported in October 2003. The report of the working group did not contain agreed recommendations on many issues, including issues relating to teachers' pensions. As mentioned earlier, the budget changes reflect the Pensions Commission recommendations.
The measures announced include changes which will apply only in the case of new entrants to the public service and some changes which will apply in the case of staff currently in service. In the case of new entrants, the following changes were announced to take effect from 1 April 2004, except in those cases where, for legal or technical reasons, a later commencement date is required: the minimum pension age will be increased to 65 for the generality of new entrants to the public service, including teachers; the compulsory retirement age of 65 will be removed for new entrants.
The Minister also announced that he is proposing changes to the pension terms and conditions of serving staff along the lines recommended by the Commission including: – amendment to the existing formula used for integrating public service and social welfare pensions so as to make better provision for current and future staff on lower pay levels. Such a change would also be of benefit to some existing pensioners. Integration applies to public servants in full PRSI class; introduction of a single additional voluntary contribution type scheme for the public service, ie the Scheme for Public Employees Additional Retirement Savings – SPEARS.
The Minister also announced that he will examine the feasibility of implementing the Commission's recommendation for the payment of a survivor's pension to non-spousal partners and also the possibility of providing for some form of optional early retirement with payment of actuarially reduced benefits, which would have a cost neutral effect, as recommended by the Commission.
Finally, the Minister announced that the Government has decided not to accept the Commission's recommendations in relation to the introduction of an additional 1% pension contribution or the use of a new index for the purpose of determining pension increases. These recommendations would have applied to serving staff, with the new index also applying to existing pensioners, had they been accepted by the Government.
The new minimum pension age of 65 will apply to new entrants to employment in the education sector, including teachers, from 1 April 2004 as will the removal of the compulsory retirement age for them. Apart from those measures, my Department awaits detailed proposals on the implementation of the Commission's recommendations from my colleague the Minister for Finance in so far as they relate to teachers and other groups in the education sector.
