Dáil Éireann Debate, Wednesday - 1 July 2015
86. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform the annual saving to the Exchequer if the following Top Level Appointments Committee terms were removed from all currently serving Secretaries General: special severance pension payment to the value of half a year’s pay; and retiring on a full pension with ten added years. [26612/15]
View answerThere are currently 8 Secretaries-General (and equivalents) who by virtue of their appointment prior to reforms introduced by me in 2011, retain the "old TLAC terms" which entitles them to a severance payment of 6 months' salary and up to 10 added years' service.
There are 3 levels of Secretary-General in pay terms with different pay rates. The pay rate would also be dependent on whether or not an individual was Integrated (Personal Pension Contribution- PPC) or modified (Non-Personal Pension contribution).
|
- |
Modified (Non-PPC) |
Integrated (PPC) |
|
Grade |
6 months' salary |
6 months' salary |
|
Secretary General Level I |
€92,675 |
€92,675 |
|
Secretary General Level II |
€88,175 |
€92,675 |
|
Secretary General Level III |
€83,650 |
€87,938.50 |
The amount of added years, if any, awarded will depend on the particular career history and pay point of each individual. Any added years awarded will impact on pension and lump sum entitlements. The cost of 1 added year and 10 added years in terms of pension and lump sum is as follows:
|
Grade |
1 Added Year Pension |
1 Added Year Lump Sum |
10 Added Years Pension |
10 Added Years Lump Sum |
|
Secretary General Level I Non-PPC |
€2,316.88 |
€6,950.63 |
€23,168.75 |
€69,506.25 |
|
Secretary General Level II Non-PPC |
€2,204.38 |
€6,613.13 |
€22,043.75 |
€66,131.25 |
|
Secretary General Level III Non-PPC |
€2,091.25 |
€6,273.75 |
€20,912.50 |
€62,737.50 |
|
Secretary General Level I PPC |
€2,316.88 |
€6,950.63 |
€23,168.75 |
€69,506.25 |
|
Secretary General Level II PPC |
€2,316.88 |
€6,950.63 |
€23,168.75 |
€69,506.25 |
|
Secretary General Level III PPC |
€2,198.46 |
€6,595.39 |
€21,984.63 |
€65,953.88 |
I understand that, in most cases, the relevant individuals will be substantially less than 10 years short of the full 40 years service requirement when they are due to retire, so the issue of 10 added years would not arise in those cases. However, this calculation can only be done on their retirement.
