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 19th Century 1834 -1919 Superannuation Acts still provide basis Legislation and industrial relations agreements since the foundation of the State

Structures 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

Three Strands Exchequer funded (Direct) Health, Education, Civil Service, Security, Non Commercial State Bodies Local Authorities (Local Gov Fund) Commercial State Bodies (Funded Schemes)

Funding “Pay as you Go” basis – Voted National Pension Reserve Fund Exchequer Exchequer via Local Government Fund National Pension Reserve Fund “Funded” Schemes Commercial State Bodies

Annual Costs(2006) Exchequer funded €1.58bn Local Authorities € 0.42bn Total Estimate € 2.0bn

Pay and Pensions (Exchequer Funded) (IV) 2006 Exchequer Pay & Pensions Bill Expenditure by Sector Health 41% Education 32% Civil Service 13% Security 11% Non-Comm. State Bodies 3% Non-Comm. State Bodies

Public service Numbers Sector Numbers Exchequer Paid 257,013 Local Authority 33,000 Commercial Bodies 45,252 Total 335,565

(XI) Sectoral Breakdown of Exchequer Funded Public 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

Model 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

How Change is managed and effected Policy Review Partnership Process Conciliation and Arbitration Process Legislation and Administrative Authority

Recent Developments Pension Commission Compulsory Retirement Age General Review/Reform Compulsory Retirement Age Employment and Equality Legislation Public Service Management Act Ongoing Review

Cost Projections Year €bn %GDP 2006 2 1.3 2012 3 2021 4 2056 6 3.7