Pension move to 'aid lower-paid'
NEW ARRANGEMENTS for public service pensions will mostly affect those earning higher, “Rolls Royce” salaries and will benefit those on lower pay, Minister for Public Expenditure and Reform Brendan Howlin has said.
The scheme for new employees is aimed at reducing the public service pensions bill.
He said the changes will mean pensions will be calculated based on a monetary value for each year’s service, which would then be averaged out over the entire career.
Mr Howlin was speaking at the Oireachtas Select Committee on Finance, Public Expenditure and Reform, during the committee stage of the Public Service Pensions (Single Scheme) and Remuneration Bill 2011.
He said the changes meant people would no longer get a pension on retirement which was based on their final salary at the time of retirement.
Mr Howlin said those on flat career averages, such as nurses and gardaí, would be “relatively unaffected” by the new scheme.
Those most affected would be the “high fliers” who went from administrative officer to secretary general or from garda to Garda Commissioner, he said.