Written answer
Pension Provisions
201. Deputy Michael Healy-Rae asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation whether he will consider a pension enhancement or accrual multiplier for Garda members covered by the single public service pension scheme to recognise long service and promotion, particularly progression into supervisory and management roles later in their careers, and support retention [66448/26]
Comment on this
The Single Public Service Pension Scheme is a statutory Public Service Career-Average Defined Benefit Pension Scheme. It was established under the Public Service Pensions (Single Scheme and Other Provisions) Act 2012.
The provisions of the Single Scheme are clearly set out in law. All new-entrant public servants hired after 1 January 2013 are members of the Single Scheme. This includes uniformed members in An Garda Síochána, the Defence Forces, full-time Firefighters and Prison Officers.
The introduction of the Single Scheme is central to ensuring the long term sustainability of public service pensions, particularly in the context of improved life expectancy and rising public service employee numbers. The most recent valuation of the State’s Accrued Liability in respect of public service retirement benefits calculates the overall liability to be €175.7bn, which is payable over the next 70 years or so. The annual pension bill for the public service is currently at €5.3bn; this is projected to increase to a peak of €9.8bn in 2055.
Despite the broader trend in the private sector towards closing defined benefit schemes, the Single Scheme remains a defined benefit pension arrangement, albeit based on career average remuneration.
Uniformed members - Firefighters, Prison Officers, Gardaí and the Defence Forces - have enhanced benefits that other Single Scheme members do not have. These members accrue benefits at a faster rate due to their earlier Mandatory Retirement Age.
In 2024, in recognition of individuals seeking to work longer, Government enacted legislation to permit Uniformed staff to remain in service until age 62, should they wish to. This move allows members to build-up a higher pension than previously, increasing the final value of their Single Scheme pension. On retirement, subject to having reached their Normal Retirement Age, members receive their Single Scheme pension and lump sum immediately. Any further changes to Mandatory Retirement Ages for Uniformed staff are matters, in the first instance, for relevant line departments.
There are no plans at this time to introduce further pension enhancements for members of An Garda Síochána or any other Single Scheme members. As an individual receives increases in pensionable remuneration due to increments or promotion, this will be reflected in their pension and lump sum accrual due to the career average nature of the Single scheme.
Issues of retention are a matter, in the first instance, for relevant line departments.