Dáil Éireann Debate, Wednesday - 16 September 2020
39. Deputy Ged Nash asked the Minister for Public Expenditure and Reform his plans to extend the Covid-19-related pension abatement waiver for HSE rehires beyond 30 September 2020; and if he will make a statement on the matter. [24216/20]
Amharc ar fhreagraAs the Deputy may be aware, the principle of abatement of a public service pension is longstanding within the rules of various public service pension schemes and pension abatement is an important aspect of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012 (the “Single Scheme Act”). Section 52 (1) of this Act provides for the abatement of a public service pension where a retired public servant, whose pension is in payment, is re-employed in the public service such that no more of the pension when combined with the remuneration in the new job shall exceed the pensionable remuneration of the old job.
The policy rationale for this provision is to avoid a situation where individuals benefit from both a valuable public service pension and also a public service salary. Abatement represents a suitable and measured response to legitimate public concerns in this context.
Section 52(4) of the Single Scheme Act provides for a waiver of abatement, in exceptional circumstances where the position requires a person with particular training and experience and where that position cannot be filled other than by the employment of the pensioner.
The exceptional nature of the Covid-19 crisis has required some sectors, including the health sector in particular, to source staff at short notice to address the manpower challenges on the frontline in this crisis. Temporary waivers of pension abatement have been sought and provided under the legislation in order to facilitate these efforts. Retired staff have assisted with the filling of critical staffing gaps and increased service demands associated with the challenges caused by the virus. The duration of the current waiver for the health sector in this regard, as the Deputy points out, is valid until the end of September.
An application for any proposed extension of a Covid abatement waiver must be made to this Department accompanied by a business case. Such an application would be a matter for the relevant responsible Department in the first instance. My Department will examine cases made taking account of the particular circumstances on the one hand but also the need to uphold the intent and requirements of the legislation as well as the underlying policy on the other.
