Pension Provisions.

Tuesday, 6 April 2004

Questions (116)

Willie Penrose

Question:

201 Mr. Penrose asked the Minister for Agriculture and Food if he will take steps to allocate the correct number of years of service to a person (details supplied) in County Westmeath; the reason this person’s years of service have been left one and a half years short; if same will be properly computed; and if he will make a statement on the matter. [10776/04]

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Written answers

Minister for Agriculture and Food (Mr. Walsh)

Under the scheme for the purchase of notional service, civil servants may, subject to certain conditions, purchase notional service in respect of the shortfall of service which they would otherwise have in making up their maximum pension entitlements at retirement age. Service can be purchased in two ways: by periodic deduction from salary or by lump sum payment. The purchase scheme has been designed in such a way as to ensure that it is self-financing and appropriate actuarial tables have been devised to cater for the different purchase options available. A person can be credited only with additional notional service for which he or she has paid.

The officer concerned is retiring shortly. He exercised an option in 1990 to purchase three years service for superannuation purposes by periodic deductions from his salary until his 65th birthday. In 1995, he opted to purchase an additional one year and 325 days service. However, it has recently come to the attention of my Department that the deductions towards the first option of purchase of service were inadvertently discontinued when the deductions for the second option commenced in 1995. The officer's service at retirement will be 38 years and 26 days. My Department is discussing possible options with the person concerned for making good the shortfall in his service within the constraints of the purchase scheme.