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PUBLIC SERVANTS WHO hit retirement age before the new legislation comes into effect will result in those wishing to work beyond 65 being re-hired and placed on a minimum or lower pay scale.
Last week, it was announced that the mandatory retirement age for civil servants is to rise from 65 to 70 under new legislation to be finalised next year.
Under current rules, those working in the public service must retire from their job at age 65.
However, the new law will mean people can work up until 70 if they so choose.
The new compulsory retirement age will not come into effect until the necessary legislation is commenced.
Finance and Public Expenditure Minister Paschal Donohoe said last week that he wants to introduce the heads of the Bill in the new year and for the Bill to make a speedy passage through the Houses of the Oireachtas.
The Attorney General has been requested to prioritise the drafting of the necessary legislation for this purpose.
In the meantime, the minister announced that he had agreed with sectoral public service employers some limited interim arrangements to apply in the period between the government decision and the commencement of the necessary legislation.
Public servants who reach the age of 65 in that period and who wish to remain working will be allowed to do so by ministerial order.
Interim arrangements
The interim arrangements will allow pre 2004 public servants who reach the age of 65 in that period to remain in employment only until they reach the age of eligibility for the State contributory pension, which is currently 66.
The worker will have to retire, and will then be re-hired in order to work past 65.
However, under the interim arrangements, a person who works on will only be paid at the minimum point of the relevant pay scale.
This means if a public servant who is at principal officer level three will go back to level one under the interim measures – resulting in them earning a lower wage.
However, a statement from the department said that public servants availing of these arrangements will have received their pension and lump sum payment.
Sinn Féin spokesperson for employment affairs and Social Protection John Brady said he has been contacted by a number of public servants who are approaching the age of 65 and who would like to work on.
He said that the interim arrangements in place for public servants wishing to remain at work are “purposely unattractive”.
‘Grim reading’ for those approaching retirement
Brady said there is little or no point for those approaching retirement age to consider working on before the legislation is enacted, adding:
“The interim arrangements put in place by Minister Donohue and agreed with public service employers makes for grim reading.
“Employees will be allowed to remain at work beyond 65 but only under certain conditions. These conditions include 65 year olds retiring and being re-hired for the extra year, being paid at the minimum point of their relevant pay scale which will result in pay reductions, and no longer being able to accrue pension benefits for the year.
“This means that those wishing to remain at work to add to their PRSI contributions will be unable to do so. I would also question whether or not trade unions were consulted on these arrangements,” said the Wicklow TD.
Calling the interim measures “extremely disappointing”, Brady said:
“If these interim arrangements are anything to go by I would be cautious as to the actual text of this legislation to raise the mandatory retirement age to 70 and what it will actually look like.”
A statement from the Department said that only when the legislation was enacted would an employee be allowed to retain their current terms and conditions.
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Great news for all the new substitute teachers looking for work. No wonder wer all emigrating!
So this is what it’s all about, lower pay scales but not for elderly Politicians who continue to cream the system.
@Charles Coughlan: Yes, Francis Fitzgerald was 67 when she reluctantly stepped down.
Bit of a kick in the teeth for a highly qualified worker who wants to continue to contribute. “You can stay, but we’ll treat you as less than we do now.”
@Damocles: Did you read the article or just miss the ‘interim measure’ bit?
@Reg: there’s no reason why an interim measure has to be a kick in the teeth.
@Damocles: The clue is in the article….requires new legislation.
@Reg: the unlegislated interim solution can be as nice or, as it turns out, nasty as they want.
@Damocles:
What are you on about, they may be on a lower scale but they will have received their pension payments and lump sum
@Damocles: when is enough, enough? Any hope of people trying to get these positions who have morgages and young family’s. Suppose you think we should all be allowed to drain the system for as much and for as long as we want, while blocking a generation behind us from getting jobs?
Will politicans like Michael Noonan have to hand back the millions they have received…
@Michael Mulcahy: His wages?
So the public service really does cover you to the grave. Nice to see the politicians looking after their own while two thirds of private sector workers can’t afford any pension. It’s great to think this little hiccup has been sorted so quickly whilst zero hours contracts apply for 100,000 private workers and nothing is being done.
@winston smith: the mandatory pension is coming. 10% mentioned but that is tax deductible. Employers to match that.
@winston smith: the civil & public service are recruiting admin staff on a regular basis. If you feel it is such a good job, why don’t you apply?
@winston smith: publicjobs.ie come on.. hop on board the gravy train.
@Gerry Cummins: All fixed up in that place. Sure look at what happened in the HEO competition
How’s that for an ultimate insult,the most experienced workers payed peanuts…….
@Phil O’Connor: hardly! If you are a Principal Officer you start at €77,849… just a moderate drop down from the €95,000 at top of your scale!
If you are going to retire at 65 with 40 years Service you will already have your pension (50% of €95k approx PA) in hand plus an opportunity to retain your job at €77,849 per year… you’ll be financially better off than those waiting for the legislation to pass!
Sweet Jesus, who in gods name would want to continue working past 65? You are close enough to deaths door as it is…
@Neil Cash: Sometimes it’s not a want, but a need. 35 year mortgages will still have to be paid.
@Neil Cash: You really are a total fool.
If higgins is relected does that mean his salary will halved
@David Mc Nally: the regulation did not apply then
Is this not an example of acceptable ageism? I think i would rather retire at 65 with my indignity intact and not have to go through what would be a psychologically devastating process in which your skills, experience and value are put on the diminished list and backed up by a pay deduction all because the government wand to offset a few years of paying out a pension against the tax you generate.
@Tom Collins: with your indignity intact???
This is kind of laughable! Work till your 70 but we’ll pay you less. But it doesn’t apply to the politicians themselves. The gov solution to the pension problem!
And there’s the catch.Did you think it was going to be any different?Consistently bad is their MO.
@Laurence Cavanagh: the new regulation did not apply then
FFS give someone young a start in life
I’d love to hear what an expert on equality legislation would make of this. If the hypothetical re-hired 68 year old is paid less than a comparable 64 year old for the same work, having the same experience and qualifications etc, it looks to me like blatant age discrimination. Equality legislation emanates from the EU, so the Oireachtas can’t bypass it with legislation.
If I am reading this correctly those retiring will receive their pension and the minimum of their relevant pay scale they had prior up retirement. Traditionally those public servants had their pension abated and continued on their prererirement pay rate. Surely this a better deal for them. However there will be very few takers as who would want to waste valuable time working when there are thousands of better things to do with your remaining days and years.
So no opportunities for the next generation to get to work. Jobs being taken up by career blockers. They should clear off out it and stop being a nuisance to those who are looking for jobs.
This is Bizarre! Firstly, Retired Public Servants do not get the State Pension! Secondly, work ’till aged 70, sure we need a Dr’s Cert to drive a Car @70yrs!
The permanent government will cling to power for as long as they can and when you write the rules its a little bit easier for you.
Anyone in a position to take up this will be considerably better off!!!!!!!!
Any reduction in pay scale will in the vast majority of cases will be more than offset by the fact they will receive their pension, along with the lump sum.
The usual crew here desperate to paint everything in a bad light for party political reasons
@damocies. Where are ALL those Substitute teachers????? Ask any Primary or Sec school teachers or Principal about the daily challenges they face trying to get a Sub teacher??? Of any description. They are simply not there….end of! This country at the moment is in a crisis in terms of available teachers. Dads (rightly so) are now taking their 2 weeks Paternity leave and schools in crisis looking for subs. Same with Maternity leaves (an entitlement too!) And sick leave. Any solutions???
Sorry! Meant @Jermiah A Crac…
In fairness its the staff with the service that are working the easiest job at the highest rate. Most likely with no dependant children and mortgage free. By all means work as long as u feel able but remember the younger workers with kids and bills who cant keep the job or a permanent position who are working the shit jobs with crap hours on less pay all because these guys wont budge
Correction respectfully offered – proposed private sector pension will be 5% employee and 5% employer (I presume employee could pay in more voluntarily), and public sector employees who choose to extend employment past 65 cannot claim their pension at the same time as received a public sector salary – my source for the latter being Paschal Donoghue’s interview on the radio a few days back.
Couple of corrections offered respectfully – proposed 10% pension for private sector is 5% employee and 5% employer, and public sector workers who choose to stay in employment cannot claim their pension at the same time as their salary (whatever that salary turns out to be). My source for the latter was Paschal O’Donoghue’s interview on RTE1 a few days back.
@Lee VS: SORRY FOR THE DUPLICATION
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