Dáil Éireann Debate, Thursday - 5 November 2020
106. Deputy Peadar Tóibín asked the Minister for Public Expenditure and Reform the status of supplementary pension entitlements for post-1995 retirees within the Civil Service; and if he will make a statement on the matter. [34393/20]
Amharc ar fhreagraPensions for established civil servants who are not members of the Single Public Service Pension Scheme (SPSPS) were provided for under Section 2 of the Superannuation Act 1859 (as amended by section 2 of the Superannuation Act 1909). The Act provides for payment of an annual pension equivalent to one eightieth of salary for each year of service capped at forty years’ service.
In 1995, the Government decided that full social welfare cover should be extended to all newly appointed civil servants and that they should pay the full Class A social insurance contribution. The aim of integration with the social insurance system is to prevent “double pensioning” where both an occupational public service pension and the State Pension Contributory (SCP) would both be payable.
The change was introduced under the Social Welfare (Modifications of Insurance) (Amendment) Regulations 1995 (S.I. No 77/1995) as amended whereby, with effect from 6 April 1995, all newly recruited civil servants are fully insured and subject to Class A PRSI.
The new rules were notified to civil servants under Circular 6/1995 – Revised Social Insurance Status and Conditions of Service of Certain Civil Servants. In accordance with paragraph 3 of the Circular, and consistent with the Social Welfare Regulations, the new rules apply to persons appointed to established civil service positions on or after 6 April 1995.
Supplementary pensions arise when a bridging payment is required to provide for an individual’s overall public service pension entitlement because there can be a shortfall in this benefit in certain circumstances. Paragraph 18 of the Circular provides for payment of a supplementary pension as follows:
"18. The revised superannuation arrangements include provisions for the payment of a supplementary pension in certain circumstances to pensioners in respect of periods during which the pensioner is not employed in any capacity which involves a social insurance contribution and, due to causes outside his/her own control, fails to qualify for social insurance benefit or qualifies for such benefit at less than the maximum personal rate. The supplementary pension will be equal to the difference between
(i) the occupational pension which would have been payable if it had been based on pensionable remuneration instead of net pensionable remuneration and
(ii) the aggregate of the actual occupational pension payable and the actual rate of social insurance benefit payable (including any payments for dependents)."
The grant of a supplementary pension under paragraph 18 of the Circular is not automatic and is conditional upon a number conditions as follows:
1. The individual must have reached minimum pension age in accordance with the rules of his/her pension scheme;
2. The individual must not be engaged in paid employment;
3. He or she does not qualify for social insurance benefit or fails to qualify for such benefit at the maximum rate; and
4. His or her failure to qualify must be due to causes outside his or her control.
The arrangements for the payment of supplementary pensions has always existed for fully insured civil servants. Similar rules for integrated pension schemes also apply across the wider public service e.g. in the education sector.
