Dáil Éireann Debate, Thursday - 23 May 2013
13. Deputy Micheál Martin asked the Minister for Public Expenditure and Reform his plans to consolidate the 156 defined benefit schemes listed for public sector employees; and if he will make a statement on the matter. [24661/13]
View answerI understand that the Deputy is referring to the public service pension schemes listed in the Occupational Pension Schemes (Funding Standard) (Amendment) Regulations 2013 which were signed by the Minister for Social Protection on 18 April 2013. These schemes are exempt from the funding standard provisions of Part IV of the Pensions Act 1990.
Consolidation of particular public service pension schemes has taken place from time to time in the past, and individual instances of such consolidation may occur in the future. The consolidation of particular schemes could arise, for example, on foot of the merger or other re-organisation of State Bodies. It is also a fact that many public service schemes adhere to the standard rules set out in the 'Model' superannuation scheme for non-commercial state bodies.
Notwithstanding consolidation events which may arise in this way, and subject to the very important exception case of the Single Public Service Pension Scheme, I have no plans for widespread consolidation of existing public service pension schemes. For the most part the schemes concerned are localised to particular sectors of the public service, such as the civil service and local government, or to individual bodies, agencies and institutions. These schemes often originate from legislation specific to the area or body concerned, such as when the foundation Act of a State body makes specific provision for the establishment of a pension scheme for the workforce of that body. This legislative background, along with differences in rules between schemes, would mean that any attempt at wholesale consolidation would be a difficult, complex and potentially expensive undertaking.
An effective consolidation of public service pension schemes will in any event be achieved over time by way of the Single Public Service Pension Scheme, which I launched on 1 January 2013. The Single Scheme applies to all areas of public service employment, and is now the default pension scheme for first-time new-joiner public servants. In general the only new-joiner public service personnel who can be enrolled in pre-Single Scheme public service schemes are those with a recent work history elsewhere in the public service. In this sense the multitude of public service schemes to which the Deputy refers can mostly be regarded as semi-closed to new entrants, and will be fully displaced over time by the Single Scheme.
