Written answer
Pension Provisions
938. Deputy Ruairí Ó Murchú asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation 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. [59410/26]
Comment on this
As 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 (OSP) component is subject to eligibility, including the following:
The retired public servant is not in paid full-time 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 payment of an OSP is only applicable to retired members of pre-existing public service pension schemes.
Prior to July 2024, retired public servants were required to engage with DSP and exhaust their entitlement to Jobseekers' Benefit. My Department was fully aware that the previous process for qualifying for the payment of an OSP created issues for some retired public servants. In this regard, it should be noted that no interdepartmental working group was established in respect of this matter, however my officials engaged with the appropriate stakeholders to address the issue.
In July 2024, my Department issued a circular in respect of the OSP (Circular 12/2024), which streamlined the application process and removed the requirement for public service pensioners to engage with DSP before reaching State Pension Age (currently 66) in order to avail of an OSP. Accordingly, the matter has been resolved and is not under review.