Dáil Éireann Debate, Wednesday - 26 January 2005
377 Mr. P. McGrath asked the Minister for Finance if, in view of the announcement by his predecessor regarding public pension increases (details supplied), he will give the increases awarded to date under these proposals; indicate the increase which is due to a pensioner with 35 years of service as a clerical officer who has a fortnightly pension of €569; and when these increases will be awarded. [1591/05]
View answerI will be introducing the pension increases referred to at an early date. These arrangements will have retrospective effect to 1 January 2004. The new arrangements relate only to the pension entitlement of workers with a pensionable salary below the threshold of 3.33 times the rate of the contributory old age pension, €31,186, and whose occupational pensions are integrated with the social welfare contributory old age pension.
Integration applies in the case of public civil servants who are fully covered for pay related social insurance, class A, PRSI. The social welfare pension is merged with the employer's occupational pension to provide a combined pension which, at 40 years service, is no less than the occupational pension, where the total pension is paid by way of occupational pension only. Generally, civil servants, including clerical officers recruited prior to 1995, are not fully covered by PRSI and, as such, their pensions are not integrated with the social welfare pension. Accordingly, they do not qualify under the new arrangements.
In addition, from the information supplied in this particular case, it appears that the pensionable salary of the official in question would not fall below the threshold of 3.33 times the rate of OACP and accordingly would not qualify under the new arrangements, even if the individual were in class A, PRSI.
