Vol. 417 No. 5
114 Mr. R. Bruton asked the Minister for Finance whether he has satisfied himself with the equity of the system known as co-ordinated pensions, whereby persons in semi-State bodies have their annual income from their pensions fund reduced by a sum equivalent to their contributory old age pension; if he will outline the approximate number of workers affected; and if he will make a statement on the matter.
The general purpose of the system of pension co-ordination for public servants who have full PRSI cover is to ensure that the total retirement pensions of these employees, i.e., their occupational pensions plus their entitlements under the social welfare code, are not excessively high by comparison with their colleagues who have modified PRSI cover. I am satisfied that the system is equitable, and that in achieving its purpose it strikes a fair balance between the employees' entitlement to an adequate level of income on retirement on the one hand, and the cost implications for the State as employer on the other. I should add that the practice of pension co-ordination for employees in full PRSI cover is not confined to semi-State bodies — it also applies elsewhere in the public sector and is a feature of some private sector pension schemes.
In the time available, it is not possible to furnish the number of public servants to whom the pension co-ordination system applies. However the total number of public servants in full PRSI cover is approximately 150,000, and the vast majority of these employees are in occupational pension schemes which provide for pension co-ordination on the general lines described by the Deputy.
