Dáil Éireann Debate, Tuesday - 23 March 2004
75 Mr. Rabbitte asked the Minister for Finance the position in regard to the discussions between his Department and public service unions regarding the impact of proposed changes in regard to public service pensions; the steps being taken to address the concerns raised by the unions; and if he will make a statement on the matter. [8944/04]
View answerI take it the Deputy is referring to the proposals on public service pensions which I announced in my budget speech last December. The Government accepted the bulk of the recommendations of the Report of the Commission on Public Service Pensions which was published in 2001. The trade unions were represented on the commission, and subsequently joined a working group set up to advise on the implementation of the commission's recommendations. While this working group failed to reach agreement on key issues, it provided a setting for consultation in which union concerns could be articulated and ultimately channelled to Government after the group's report was concluded in October 2003.
In line with my budget announcement last December, the Public Service Superannuation (Miscellaneous Provisions) Bill 2004, which is currently before the Oireachtas, will implement a key commission recommendation by raising the minimum pension age to 65 years for most new entrant public servants. The Bill will also abolish compulsory retirement age for most new entrant public servants.
At the time of the budget I undertook to ensure that the public service unions were kept fully informed as to the details of the implementation of the reforms in the Bill in advance of their introduction for new entrants on 1 April 2004. Several meetings have been held with union representatives over recent months. In the course of these meetings the unions have made their views known on the draft legislation. In framing the legislation, I have had regard to their views.
I also announced in my budget speech that I intended bringing forward a further set of proposed pension changes arising from the commission's recommendations in respect of existing public servants. These changes, which are not part of the Bill, are being discussed with the public service unions at present. Issues being considered include amendment of the formula used for integrating public service and social welfare pensions to make better provision for current and future staff on lower pay levels, along with a new single additional voluntary contribution-type scheme for the public service, as well as the possibility of optional early retirement on the basis of actuarially reduced benefits. Also, it is proposed to examine the feasibility of implementing the commission's recommendation for the payment of survivors pensions to non-spousal partners. The discussions are not yet concluded, but I understand that very substantial progress has been made. I am confident changes in these areas will bring further modernisation of public service pension arrangements in keeping with the other reforms in the Bill.
