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Public Service Pensions in Ireland Presentation by Des O’Leary Department of Finance (Ireland) “Social Rights and Pensions for Civil Servants in some EU Member States” Vilnius, 9 November 2006. Public Service Schemes Origins. 19 th Century - PowerPoint PPT Presentation
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Public Service Pensionsin Ireland
Presentation byDes O’Leary
Department of Finance (Ireland)
“Social Rights and Pensions for Civil Servants
in some EU Member States”Vilnius, 9 November 2006
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Public Service SchemesPublic Service SchemesOriginsOrigins
19th Century 1834 -1919 Superannuation Acts
still provide basis Legislation and industrial
relations agreements since the foundation of the State
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StructuresStructures
No single all embracing Scheme Each Sector has its own Scheme –
Enabled by legislation Dept of Finance – overall
responsibility – exercised through• Policy• Approval of individual schemes and
changes - Model Scheme template• Funding
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Three StrandsThree Strands
Exchequer funded (Direct)• Health, Education, Civil Service,
Security, Non Commercial State Bodies
Local Authorities (Local Gov Fund)
Commercial State Bodies (Funded Schemes)
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FundingFunding
“Pay as you Go” basis – Voted • Exchequer• Exchequer via Local Government
Fund National Pension Reserve Fund “Funded” Schemes
• Commercial State Bodies
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Annual Costs(2006)Annual Costs(2006)
Exchequer funded €1.58bn Local Authorities € 0.42bn
Total Estimate € 2.0bn
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Pay and PensionsPay and Pensions(Exchequer Funded)(Exchequer Funded)
(IV) 2006 Exchequer Pay & Pensions Bill Expenditure by Sector
Health41%
Education32%
Civil Service13%
Security11%
Non-Comm. State Bodies
3%
Health Non-Comm. State Bodies Education Civil Service Security
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Public service NumbersPublic service Numbers
Sector Numbers
Exchequer Paid 257,013
Local Authority 33,000
Commercial Bodies 45,252
Total 335,565
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Overview Overview (XI) Sectoral Breakdown of Exchequer Funded Public
Service Numbers 2006
Non-Comm. State Bodies, 4.42%
Civil Service, 14.47%
Security, 9.61%
Education, 32.00%
Health, 39.49%
Health Education Civil Service Security Non-Comm. State Bodies
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Model SchemeModel Scheme Defined Benefit Scheme Ancillary Benefits Integrated with Social Insurance (1995) Standard Accrual Generally Minimum & Maximum Retirement Date Remuneration and Service Calculations Pro Rata Integration Parity with Pay Ability to purchase & transfer Service Abatement
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How Change is managed How Change is managed and effectedand effected
Policy Review Partnership Process Conciliation and Arbitration
Process
Legislation and Administrative Authority
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Recent DevelopmentsRecent Developments
Pension Commission• General Review/Reform
Compulsory Retirement Age Employment and Equality
Legislation Public Service Management Act Ongoing Review
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Cost ProjectionsCost Projections
Year €bn %GDP 2006 2 1.3 2012 3 2021 4 2056 6 3.7
