I move: "That the Bill be now read a Second Time."
The object of the Bill, which has passed all Stages in Seanad Éireann, is to amend the law relating to the pensions of the Judiciary and certain court officers, i.e. Master of the High Court, Taxing Masters and county registrars, so as to apply to the pension terms of these two groups certain limited changes in line with similar changes already introduced in the superannuation codes generally applicable throughout the public service.
The main provisions of the Bill, which are broadly similar to those contained in a Bill introduced in 1984 but which lapsed with the dissolution of the 24th Dáil, are as follows.
Section 2 of the Bill proposes in the case of the Judiciary that temporary service as a judge of the Circuit Court or as a district justice prior to permanent appointment will reckon for pension purposes. This change does not apply to court officers as temporary service does not arise in the case of court officers.
Section 3 proposes that periods of less than a complete year, such as odd days and so on, would be included when calculating pension benefits for the Judiciary and for the court officers, respectively. At present, pensionable service is reckoned only in completed years.
Section 4 proposes to give power to the Minister for Finance, after consulting with the Minister for Justice, to make regulations providing for a statutory spouses' and children's pension scheme for the Judiciary and court officers on the lines of the voluntary scheme which has been operating on an administrative basis since 1969. The scheme, which would be self-financing, would be similar to the schemes operating already for other public service groups.
Sections 5 and 6 propose to give power to the Minister for Finance, after consulting with the Minister for Justice, to make regulations, first to enable preserved pension benefits to be paid to a member of the Judiciary or a court officer, who retires voluntarily after five years' service or more, on conditions to be specified in the regulations. The regulations will prescribe the details of a scheme for preservation of pension benefits in cases of voluntary retirement on the lines of the scheme already operating for civil servants and, secondly, to enable a scheme for the purchase of additional years of service for pension purposes, at full cost to themselves, to be introduced for the Judiciary and the court officers— again on the lines of the scheme operating for the Civil Service. The cost of purchasing service for pension purposes will be worked out on an actuarial basis.
Section 7 provides for the laying of regulations, when made under sections 4 and 5 of this Bill, before the House of the Oireachtas.
Sections 8 and 9 propose to abolish the qualifying period of service, five years, at present required to enable a death gratuity to be paid in respect of a member of the Judiciary or a court officer who dies in service.
Provision is made at section 10 for an element of retrospection in applying some of these changes. The dates applied are broadly related to the dates of implementation approved in the application of similar changes for the Civil Service and for other groups in the public service.
It is not the intention in this Bill to make any fundamental changes in the pension terms of the Judiciary. The proposed changes represent the application to the Judiciary and the court officers of quite specific changes which were introduced for the Civil Service as long ago as 1973 and which have long since been extended to other groups. These particular matters have been the subject of representations to my Department from the Judiciary and the court officers over a period of years and previous administrations also have been committed to their implementation.
The statutory provisions governing pension benefits for the Judiciary and the court officers are contained in the Courts (Supplemental Provisions) Act, 1961, and the Courts of Justice and Court Officers (Superannuation) Act, 1961.
The Courts (Supplemental Provisions) Act, 1961, contains the basic provisions relating to pension entitlements. Those for the Judiciary are laid down in the Second Schedule to that Act. It provides for a maximum pension of two-thirds remuneration, but this is subject to a reduction of one quarter — I will come back to that. Pension is based on, in the case of judges of the Supreme and High Courts and the Circuit Court, 15 years' service, and, in the case of district justices, 20 years' service. There is also provision for proportionate pension in cases of vacation of office on grounds of age or infirmity. The provisions for the court officers are at section 57 of the Act. They provide for a maximum pension of two-thirds of remuneration based on 20 years' service and, also, for a proportionate pension. The pension terms for the court officers are very similar to, though not identical in all respects with, those for district justices.
The Courts of Justice and Court Officers (Superannuation) Act, 1961, provides, inter alia, for a reduction of the pension by one quarter, for example in the case of maximum pension, from two thirds to one half remuneration, and, consequentially, for payment of a retirement gratuity equal to one and a half times the pension as reduced. It also provides, in the case of death in service, a death gratuity equal to one year's remuneration at the time of death. Payment of the death gratuity, however, is at present subject to a statutory qualifying period of five years' service.
I should now like to come back to the changes proposed. The principle of having full-time temporary service reckonable for superannuation purposes was conceded in the Civil Service as far back as 1967. Temporary service in the case of the Judiciary arises under section 14 and section 51 of the Courts of Justice Act, 1936. Section 14 provides, where it is necessary to prevent the work of the court getting into arrear, for the appointment of one or more persons to act as a judge or judges of the Circuit Court.
Section 51 makes similar provision in relation to the District Court. In both cases persons thus appointed on a temporary basis are required to have the same qualifications as for a permanent appointee, and, during the period for which they are appointed, have all the privileges, powers and duties of permanent judge or justice. Circuit Court judges and district justices are frequently appointed on a temporary basis prior to being given a permanent appointment, but such temporary appointments may be renewed. It is anomalous in these circumstances that a judge or justice who does not qualify for a full pension and who may have as much as two or more years' temporary service in addition to his permanent service should be deprived of the benefit of that temporary service for pension purposes. Section 2 proposes to rectify this anomaly.
At present, the concept of "service" for pension purposes is, in the cases of both the Judiciary and the court officers, reckoned by reference to completed years only. In the Civil Service, and elsewhere, for many years now, service is reckoned on the basis of years and days, so that any period of less than a year is taken into account.
In the course of my Second Stage speech in the Seanad I gave an illustration which would be worth repeating for the benefit of Members of this House, of the extent to which the superannuation benefits of a member of the Judiciary or a court officer can be adversely affected by the present arrangements. A member of the Judiciary retired with total service of 13 years and 362 days. His temporary service accounted for 115 days. These did not reckon for pension. He also did not get credit for the remaining 247 "odd" days. Accordingly, his pensionable service was taken as 13 years only, thus reducing the value of the superannuation award by some 7 per cent. The proposals at section 3 allow for the reckoning of service in years and days. These, when combined with the proposals contained at section 2, with respect to temporary service, would serve to resolve this situation.
The formal spouses' and children's pension schemes to be set up under regulations made by the Minister for Finance under section 4 would be self-financing. Benefit would be in consideration of the payment by the member of the appropriate contributions by periodic reduction from salary and, in certain situations, by a reduction in the amount of the gratuity payable on retirement or death. The scheme, which would have retrospective effect, would be on the lines of the informal voluntary scheme which has been operating on an administrative basis since 1969 and similar to that operating already for other public service groups. Basically, the scheme provides that in the event of death in office of a contributor a pension becomes payable to the deceased's spouse and children based on the number of years' service the deceased would have given, had he survived to normal retirement age. It also provides for payment of a pension on the death, subsequent to retirement, of a person who was a contributing member while in office. A deduction is made from the lump sum of appropriate contributions for any notional years' service and for any years for which no contribution had been made, for example during temporary service. For all persons appointed to office subsequent to the making of the regulations membership will be compulsory.
The proposals at section 5 are designed to enable the Minister for Finance to introduce regulations to do two things. The first is to enable pension benefits, in the case of a member of the Judiciary or a court officer who retires voluntarily with at least five years' service, to be preserved and brought into payment on demand when he reaches the appropriate age. The second will allow members of the Judiciary and the court officers, if they wish to do so, to purchase added years of service for pension purposes at full cost to themselves. The cost of purchasing additional service will be determined on an actuarial basis. Section 5 provides also that regulations made thereunder may have retrospective effect.
Determination of retirement age is dealt with in section 6. Preserved benefits would be payable in no case earlier than at age 65 except in the case of death or permanent disability. In the case of High Court judges, the age could be anywhere between 65 and 72, in the case of Circuit Court judges between 65 and 70, and in the case of district justices and court officers, at age 65.
Section 7 provides for the laying of regulations, when made under sections 4 and 5 of this Bill, before the Houses of the Oireachtas. Subsection (1) is confined to judicial regulations and, in accordance with normal practice, does not provide for power of annulment. The provisions at subsection (2), which will apply to court officers regulations, are the usual ones requiring that regulations be laid before each House of the Oireachtas for 21 sitting days during which they can be annulled by a resolution of either House.
Sections 8 and 9 propose, in relation to the Judiciary and the court officers respectively, that the qualifying period of five years' service necessary to enable the grant of a death gratuity in cases of death in service, be abolished. The qualifying period of service for payment of a death gratuity was abolished on an administrative basis in the Civil Service with effect from 1 June 1973. A similar change was not practicable, at that time, for the Judiciary. In view of hardship caused by this it was decided to have this change applied in the case of the Judiciary with retrospective effect to 1 July 1973. No retrospection is called for in applying this change to the court officers.
I will be proposing on Committee Stage a number of amendments designed to alleviate the hardship which occurs where a person appointed to act as a temporary Circuit Court judge or as a temporary justice of the District Court, under sections 14 and 51, respectively, of the Courts of Justice Act, 1936, dies before receiving a permanent appointment.
Sadly, within the past year or so, two justices of the District Court died within a period of being appointed in a temporary capacity. Had their appointment been of a permanent nature their spouses would have received a death gratuity under section 2 of the Courts of Justice and Court Officers (Superannuation) Act, 1961, as amended by section 8 of this Act. Also, they would have been eligible for membership of the contributory spouses' and children's pension scheme and their widows and eligible children would have benefited accordingly. Therefore, I consider it desirable to make legislative provision to cover these cases, and similar cases in the future.
In conclusion, may I say that this short Bill seeks to do no more than extend to the pension terms of the Judiciary and the court officers certain limited changes already introduced in the superannuation codes generally applicable throughout the public service. Accordingly, I commend it to the House.