Dáil Éireann Debate, Tuesday - 25 July 2023
363. Deputy Ruairí Ó Murchú asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he will provide an update on the interdepartmental working group looking at the procedures for qualifying for the payment of an occupational supplementary pension; and if he will make a statement on the matter. [37139/23]
Amharc ar fhreagraAs the Deputy may will be aware, for all new entrants to public service between 6 April 1995 (move to Class A PRSI) and 1 January 2013 (introduction of the Single Pension Scheme) pension payment comprises of three components:
Public Service Occupational Pension payable by the Public Service employer from Voted expenditure, the calculation of which takes account of Social Insurance benefits that may be payable to the individual;
Social Insurance Benefit(s) (Jobseeker’s Benefit, State Pension Contributory (SPC) etc.), payable, subject to eligibility, by the Department of Social Protection (DSP) from the Social Insurance Fund and;
Where the full rate of SPC is not payable, a balancing pension equivalent to a non-integrated pension i.e. a pension based on 1/80th of final pensionable remuneration, per year of service to maximum of 40 years, referred as an ‘Occupational Supplementary Pension’, which is payable, subject to eligibility, by the Public Service employer from Voted expenditure.
This approach is often referred to as an ‘integrated’ pension, as it takes into account the fact that employees are fully socially insured and includes the value of the social benefit(s) in the total value of the pension.
As mentioned above, the payment of an Occupational Supplementary Pension component is subject to eligibility, including the following:
The retired public servant is not in paid employment;
The retired public servant, due to no fault of their own, fails to qualify for Social Insurance benefit(s);
The retired public servant must have reached minimum pension age or retired on ill-health.
The second condition is important to ensure that no duplication of payments from public funds occurs. To ensure this condition is satisfied, prior to payment of the Occupational Supplementary Pension, a retired public servant is required to engage with the DSP and obtain a proof that they have exhausted any relevant benefits for which they are eligible under social insurance.
I am fully aware that the process for qualifying for the payment of an Occupational Supplementary Pension is creating issues for some retired public servants. In that light, my officials have been reviewing the current process with a view of establishing a more efficient and, where possible, a technologically enabled approach to eligibility testing that will remove undue cost for all parties involved, while preserving the principle of Exchequer neutrality.
The next step is for my officials to engage with the relevant stakeholders, in order to streamline the process. My Department is progressing the issue with a view to having a resolution in place at an early stage.
