Dáil Éireann Debate, Tuesday - 7 July 2020
232. Deputy Carol Nolan asked the Minister for Public Expenditure and Reform if concerns have been expressed to her Department regarding the operation of the post-1995 pension scheme for prison officers which precludes them from working up to 20 hours per week after they retire unlike those that retired pre-1995 (details supplied); and if he will make a statement on the matter. [14141/20]
Amharc ar fhreagraThe post-1995 occupational pension scheme for prison officers, as with the pre-1995 pension scheme, does not preclude prison officers from taking up further employment post-retirement. There are two issues which can affect the pension of a public servant where the individual chooses to take up employment subsequent to retirement - pension abatement and supplementary pension rules.
1. Abatement Where a Public Servant (including Prison Officers) returns to work within the Public Service their public service pension will be abated in accordance with Section 52 of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012 (the Act) where no more of the pension, when combined with the remuneration in the new public service position, shall exceed the pensionable remuneration at retirement as uprated to present day values.
Abatement policy remains a key component of the Act and addresses valid concerns about simultaneous payment of both pension and salary in the public service. Abatement applies to all public servants regardless of whether they have been appointed pre or post 1995. Where a public servant in receipt of a public service pension takes up private sector employment there is no impact, in respect of abatement, on the public service pension.
2. Occupational Supplementary Pension.
Following a Government decision in April 1995, civil servants, including prison officers, who pay Class A PRSI during their employment in the public service have their public service occupational pension integrated with the Social Welfare system. This means that account is taken of any social welfare pension payable to the individual in calculating the occupational pension payable to that individual.
Where an individual does not qualify for a social welfare pension or qualifies at less than the maximum rate of Contributory State Pension they may be entitled to the payment of a supplementary pension subject to meeting certain conditions. These conditions are laid down in Circular 6/1995 – Revised Social Insurance Status and Conditions of Service of Certain Civil Servants. The conditions for payment of the Supplementary Pension include:
1. the individual must not be engaged in paid employment;
2. he or she does not qualify for social insurance benefit or fail to qualify for such benefit at the maximum rate; and
3. his or her failure to qualify must be due to causes outside his or her control
However, there is no overall rule placing a “20 hour” employment restriction on a retired public service pensioner as suggested by the Deputy. Ultimately, the decision regarding working post retirement is an individual choice for a retired public servant.
