Wednesday, 10 October 2018

Questions (63, 64, 65, 66)

Joan Burton

Question:

63. Deputy Joan Burton asked the Minister for Public Expenditure and Reform the estimated cost of accrued pension rights for serving civil servants up to 31 December in each of the years 2014 to 2018; and if he will make a statement on the matter. [41274/18]

View answer

Joan Burton

Question:

64. Deputy Joan Burton asked the Minister for Public Expenditure and Reform the estimated cost of accrued pension rights for serving primary school teachers up to 31 December in each of the years 2014 to 2018; and if he will make a statement on the matter. [41275/18]

View answer

Joan Burton

Question:

65. Deputy Joan Burton asked the Minister for Public Expenditure and Reform the estimated cost of accrued pension rights for serving secondary school teachers up to 31 December in each of the years 2014 to 2018; and if he will make a statement on the matter. [41276/18]

View answer

Joan Burton

Question:

66. Deputy Joan Burton asked the Minister for Public Expenditure and Reform the estimated cost of accrued pension rights for all serving health service workers up to 31 December in each of the years 2014 to 2018, respectively; and if he will make a statement on the matter. [41277/18]

View answer

Written answers (Question to Public)

I propose to take Questions Nos. 63 to 66, inclusive, together.

An actuarial review of the accrued liability in respect of current and former public service employees’ occupational pensions was last carried out by my Department over 2017 in respect of year-end 2015. The latest review was undertaken on behalf of the Central Statistics Office who are required to show the accrued liabilities of all funded and unfunded Irish pensions as part of the National Accounts, under EU Regulation 549 / 2013. Transmission of this data to the European Commission was mandatory from 2017, in respect of valuation year 2015, and at three yearly intervals from that date. The next valuation due is in respect of year-end 2018.

As such, the following is an estimate of the cost of accrued pension rights for serving employees in the civil service, the health sector, and the education sector as at 31 December 2015. The figures represent the present value of retirement benefits to be paid in the future on the basis of accrued pension rights of serving employees.

Sector

Accrued Liability as at 31 December 2015 - Serving Employees

-

€ Bn

Civil Service

8.8

Health

12.2

Education*

17.3

*There is no readily available breakdown of the cost of accrued pension rights for serving employees in the education sector between that corresponding to primary and secondary school teachers.

It is important to bear in mind that the accrued pension rights of serving civil servants will fall to be paid over the next 70 years or so; and not in any single year.

It is also important to stress that the government has taken a number of significant steps to improve the long-term sustainability of public service pensions in recent times. For example, the Single Public Service Pension Scheme introduced from 2013 will, in time, reduce liabilities by around 35% from what would otherwise have the case.

Also, an Additional Superannuation Contribution was introduced for public servants under the Public Service Pay and Pensions Bill (Act) 2017. This provides for additional ongoing funding support towards the cost of public service pensions from those that benefit from such pensions from the year 2019.

The full report is published on my Department's website at the following link.

http://www.per.gov.ie/en/minister-donohoe-publishes-actuarial-review-of-public-service-pension-liabilities/