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08/11/2011
Top Civil Servants Lose Pension Perks
Ireland's top civil servants are to lose a number of pension perks, including severance pay arrangements, resulting in "substantial savings".
Minister for Public Expenditure and Reform, Brendan Howlin, announced reforms to the working arrangements for top level appointments on Tuesday to ensuring senior public sector managers "show leadership on the issue of pay".
The Minister said that since taking office the Government had introduced a pay cap for the public sector of €200,000, but that they were now reforming the Top Level Appointment Committee (TLAC) terms that apply to Secretaries General on retirement. This would apply to all newly appointed Secretaries General with effect from today. "Under existing arrangements Secretaries General can retire early with immediate pension, added years and with severance. These practices will end for Secretaries General appointed from now on."
For all future appointments there will be no added years, no pension payable prior to the minimum pension age, no severance pay except where a person is not of minimum pension age or has not been offered an alternative post and no severance payment where a person is offered an alternative post and refuses.
"These actions will result in substantial savings for the taxpayers," the Minister said.
He added "A balance has to be struck to ensure that the right people capable of taking on the complex challenges our country faces now, and in the future are in place. Accordingly we will review the new terms after 12 months to see that they are effective in attracting the desired candidates."
(DW/GK)
Minister for Public Expenditure and Reform, Brendan Howlin, announced reforms to the working arrangements for top level appointments on Tuesday to ensuring senior public sector managers "show leadership on the issue of pay".
The Minister said that since taking office the Government had introduced a pay cap for the public sector of €200,000, but that they were now reforming the Top Level Appointment Committee (TLAC) terms that apply to Secretaries General on retirement. This would apply to all newly appointed Secretaries General with effect from today. "Under existing arrangements Secretaries General can retire early with immediate pension, added years and with severance. These practices will end for Secretaries General appointed from now on."
For all future appointments there will be no added years, no pension payable prior to the minimum pension age, no severance pay except where a person is not of minimum pension age or has not been offered an alternative post and no severance payment where a person is offered an alternative post and refuses.
"These actions will result in substantial savings for the taxpayers," the Minister said.
He added "A balance has to be struck to ensure that the right people capable of taking on the complex challenges our country faces now, and in the future are in place. Accordingly we will review the new terms after 12 months to see that they are effective in attracting the desired candidates."
(DW/GK)
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