Vol. 428 No. 2
74 Mr. Finucane asked the Minister for Finance if his attention has been drawn to the fact that personnel who have been employed by State and semi-State agencies and who availed of voluntary early retirement schemes, lump sums and enhanced pensions have been subsequently employed on a contract basis mainly by State and semi-State agencies; his views on this practice; and if he will make a statement on the matter.
Specific provisions were included in the public sector early retirement schemes to cater for cases in which voluntary retirees subsequently obtain pensionable employment with the same organisation, or in the same area of the public sector. Under these provisions, any pension benefits in payment would immediately cease on re-employment, and any lump sum benefits received on foot of early retirement would be taken into account in determining the person's ultimate retirement benefits.
The principle underlying these provisions is that a person who is awarded an early retirement pension should not, if re-engaged by his or her former employer or a closely associated employer, be allowed to draw both salary and pension at the same time. In my direct area of responsibility, i.e. the Civil Service, I would not be prepared to sanction any arrangements which undermine this general principle. If the Deputy has specific information on such arrangements in any other area of the public sector, I will, on receipt of that information, arrange for the matter to be investigated by the relevant Government Departments.
