Howlin says most Civil Service retirees get modest pensions

OIREACHTAS SUB-COMMITTEE ON PUBLIC EXPENDITURE:MINISTER FOR Public Expenditure and Reform Brendan Howlin has said it is a myth that pensions are excessive for the average worker in the public service.

The Minister said yesterday that the Government’s spending estimates for this year were based on the assumption that the average pension for civil servants who retired this year would be €29,000, with a once-off lump sum of €87,000.

“Clearly, these numbers show that pensions for the huge majority of Civil Service retirees are modest.

“There is a lot of focus on the top end of pensions in the public service but it is important to note the figures I have just quoted.

“These large pensions are not representative.

“It must be stressed that 38 per cent of civil servants are on occupational pensions of €10,000 or less and 25 per cent have pensions . . . of €5,000 or less – some people may, of course, have other pension income, but these numbers show that commentators should be very cautious about claiming that pensions are excessive.” The Minister told an Oireachtas committee that the final figures for those who left the public service ahead of pension changes introduced in March showed that 7,897 people had retired.

He said in the Civil Service just 13 were under the age of 50 and all had left on health grounds.

He said at the end of the first quarter there were about 292,000 staff in the public service – meaning that the Government’s target for the year had been exceeded.

Other staff will be taken on in the months ahead – including a recruitment drive in the Defence Forces – bringing the numbers back up to the target level.

Mr Howlin said he was confident the Government was on track to meet its public service numbers target of 294,000 for the end of the year.