Dáil Éireann Debate, Tuesday - 26 June 2012
248 Deputy Sean Fleming asked the Minister for Public Expenditure and Reform his views on whether the projected increase in 2012 in respect of the combined public sector pay and pensions bill as compared to 2011 highlights a need for accelerated implementation of the Croke Park agreement; and if he will make a statement on the matter. [30782/12]
Amharc ar fhreagraOver the period 2009-2015 the cost of the Exchequer Pay Bill will reduce from a peak in 2009 of €17.5bn (gross) in 2009 to €13.7bn (net of Pension Related Deduction) in 2015, effecting a saving of €3.8bn. The pensions bill is estimated to increase from €2.6 to €3.1 billion (an increase of €0.5bn) in the same period as compared to the saving of €3.8 billion in pay costs. However, within that overall substantial decline, falls will be greater in some years than others depending on the rate of retirements etc. The forecast increase in the Pay and Pensions Bill for 2012 is accounted for by an increase of €285m in the Pension Bill which will exceed the expected reduction in the pay bill of €270m (gross) or €250m (net of Pension Related Reduction). Pension costs include the once off costs of superannuation lump sums payable under public service superannuation schemes (generally 1.5 times the annual rate of pensionable remuneration for full-length careers). Given the higher retirement rates of recent years, and particularly in the current year due to the expiry of the "Grace Period", these lump-sum pay outs will naturally tend to increase the annual pension cost out-turns.
The Implementation Body noted in its Second Annual Progress Report that the sustainability of the Agreement will be measured against its ability to accelerate the pace of change across the public service and its potential for extracting further Exchequer pay bill savings and non-pay administrative efficiency savings through the early implementation of key deliverables across sectors. It concluded that accelerating change now needs to occur across all public service bodies, in every sector, with an increased sense of urgency and that there is a need to go much further in this regard in view of the ongoing difficult circumstances facing the country. The Government would share this view.
