Dáil Éireann Debate, Tuesday - 8 December 2015
184. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform his views that there would be cost implications for the Exchequer in ending age-related compulsory retirement in the public sector; and if he will make a statement on the matter. [43742/15]
View answerThe most recent consideration of the issue of an age related compulsory retirement date for public servants was in the context of the enactment of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012. This legislation provided for the commencement of the Single Public Service Pension Scheme. This was a significant reform and targeted very substantial long-run savings of about one third of pension outgo, for new-hire workers across the entire public service, with foreseen savings mainly deriving from career-average (not final-salary) pension accrual, inflation (not pay) linkage of benefits, and higher minimum pension age. Accordingly any increase in the minimum pension age can deliver reduced pension costs to the Exchequer. However, while the Scheme linked normal pension age with the age of qualification for the State Contributory Pension (effectively 68 years for most new joiners), the Scheme currently includes a maximum retirement age of 70. The Scheme also recognises that for certain roles, such as members of the fire brigade, prison service, the Permanent Defence Force or An Garda Síochána, the maximum retirement age may be lower.
For public servants who are members of pre-existing pension schemes other than the Single Pension Scheme, responsibility for conditions in respect of occupational pension and any maximum or compulsory retirement ages in particular areas of the public service are in general a matter for the relevant employer, pension administrator or Government Department in the first instance. I understand that public servants, in general, who began employment in a public service body prior to 1 April 2004 normally have a maximum retirement age of 65 under their terms and conditions of employment. However, similar to the Single Pension Scheme, the maximum retirement age can be lower for certain grades. Any consideration of changes in existing age related compulsory retirement date(s) for public servants would need to have regard to the operational and other requirements of the relevant services across the public service, existing terms and conditions including pension provision and entitlements of the public servants concerned, workforce planning issues and impacts on the Exchequer.
