asked the Minister for the Environment if his attention has been drawn to the fact that only part of the expenditure arising directly from the voluntary redundancy/early retirement scheme will be carried by the Department of Finance and that the finances of local authorities will be further eroded by the automatic operation of the social welfare means test on assistance allowances, when insurance benefits expire, under which the assistance allowances are subject to reductions, as the local authority supplements basic pension increases; and if he will make a statement on the matter, since a shortage of funds may be expected to create involuntary redundancies.
Written Answers. - Public Service Redundancy Scheme.
154.
The factual position in that local authorities will be recouped from central funds all lump sum severance payments which they make under the terms of the voluntary redundancy/early retirement schemes, and the implementation of the scheme should result in considerable saving on manpower costs to local authorities even allowing for the payment, in appropriate cases, of a supplementary pension in addition to the basic local authority pension. The payment of a supplementary pension does not depend in any way on the payment of social welfare assistance allowances.
155.
asked the Minister for the Environment if his attention has been drawn to the fact that some employees of local authorities who may not be eligible at present to qualify for the social welfare contributory pension at age 65, due to an insufficiency of contributions are being invited to apply for early retirement under the voluntary redundancy/early retirement scheme circulated by his Department on 15 October 1987; and if it is intended to refuse offers of retirement from employees who may not be aware that they may be forfeiting their contributory social welfare pension by accepting early retirement under the voluntary scheme; and if it is his intention to introduce safeguards against such developments.
It is a matter for each employee to decide whether or not to apply for the terms of the voluntary redundancy/early retirement scheme having regard to all the circumstances of his case including his position in relation to social welfare benefits.
Local authorities are being asked to advise employees who apply for the terms of the scheme, to contact the Department of Social Welfare for guidance with regard to the protection of their social welfare benefits.