Jim O'Callaghan
Ceist:109. Deputy Jim O'Callaghan asked the Minister for Public Expenditure and Reform if he plans to review the provisions of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012. [32331/21]
Amharc ar fhreagraThursday, 17 June 2021
Ceisteanna (109)
Freagraí scríofa
The Public Service Pensions (Single Scheme and Other Provisions) Act 2012 (the 2012 Act), represents the delivery of a key structural reform measure.
Among other things, the 2012 Act provided for the creation of the Single Public Service Pension Scheme (Single Scheme), the extension of pension abatement across the public service and the extension of the 40 years' (or equivalent) pensionable service cap across all public service pension schemes.
The Single Scheme, established under the 2012 Act, is the default pension scheme for all new entrants to the public service since 1 January 2013. It represents the largest ever reform to public service pensions and remains critical to addressing the long-term sustainability of public service pensions in the face of significant demographic challenges over the coming decades. The Single Scheme will be instrumental in stemming the future growth in expenditure on public service pensions by driving estimated savings of up to 35% over the long-term, as compared to the cost if all new entrants were granted membership of the pre-2013 public service pension schemes.
At the end of 2013, there were 12,800 active members of the Single Scheme. By the end of 2020 there were 166,000 Single Scheme members, representing an average annual increase in membership of over 20,000 since 2013. It is possible that Single Scheme membership could exceed 200,000 by 2025, given current levels of recruitment. As pre-2013 public servants resign or retire, they will continue to be replaced by Single Scheme members. Single Scheme members are likely to form the majority of public service pensioners by the second half of the century.
Given the key importance to the long-term stability and sustainability of the public finances of the Single Scheme, as provided for under the provisions of the 2012 Act, I have no plans to revisit those provisions. The operation of the Single Scheme is, of course, subject to ongoing monitoring by my Department.
Questions Nos. 110 and 111 answered orally.
Question No. 112 answered with Question No. 105.