Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
A PUBLIC SERVANT clerical officer is going to have to take an €11,000 cut in his salary despite doing the same job – because he will turn 65.
As law stands currently, public servants have to retire when they reach the age of 65. However, the government is working on legislative changes in this area (to increase the compulsory retirement age) and interim measures put in place will allow him to be rehired after his official retirement, but on much less pay.
Last year, the government said the compulsory retirement age for those recruited before 1 April 2004 should be increased to 70, but primary legislation is required for the change to be implemented.
Interim measures were put in place so such workers can be rehired. They will be paid at the lowest entry point of the public pay scale for the first year – even though they will carry out the same tasks.
People in this position will receive a portion of the annual pension entitlement for just one year to bridge the gap to the State pension – which they are entitled to when they turn 66.
Fianna Fáil TD Dara Calleary gave the example of a clerical worker turning 65 this year when speaking in the Dáil.
“The portion of his pension that he will receive will not bring him anywhere near his current salary.
It is not fair that somebody facing that kind of cut will be expected to continue to do the same job because of a birthday.
“He will be expected to do the same job and carry the same level of responsibility owing to the fact that we are having difficulty in passing the required legislation.”
Calleary said many people are currently being forced to retire.
Legislation needed
Minister for Public Expenditure and Reform Paschal Donohoe said he has asked the Attorney General to prioritise the drafting of this legislation so that the new compulsory retirement age will become effective as soon as possible.
The Bill is on the list of priority legislation for publication in the spring-summer session of this year.
“It is not possible to determine the length of time it will take for it to be drafted and passed by the House of the Oireachtas, given the scheduling requirements and composition of the house.
“However, it is being treated as a priority and it is my intention to bring forward the necessary legislation as soon as possible.”
Interim plan
Since 2014, workers who retired at 65 were not able to access the State pension until they turned 66. This forced them to sign on for jobseekers’ benefit in the intervening year.
The limited interim arrangements allow affected public servants who reach the age of 65 to remain in employment until they reach 66.
Donohoe said, “We have the interim measures in place because I felt it was necessary to have some lead-in time between announcing that we were going to do this and bringing forward a Bill to give people time to arrange their affairs and make decisions on whether they wanted to continue to work.
“The provisions for people commencing work on the minimum point on the salary scale ensure we will stand by and implement the principle of abatement.
“Otherwise, we would find ourselves in a situation where people might continue to work but the aggregate figure of what they would get in maintaining their salary plus their pension would deliver a sum that was very high.”
To embed this post, copy the code below on your site
Should retire at 65 and give the next generation a chance.
Some of The next generation wouldnt know a days work if it hit them in the face… ive come across 80 year olds who would work better than 20 odd year olds
@Dennis Cox: Seriously one of the more idiotic comments on the Journal. Congratulations.
@Dennis Cox: study after study shows that people who retire, die sooner than those who keep working. If you want to keep working and are still effective then you should be allowed.
The idea of “giving someone else a chance” is ridiculous.
Should get re hired then go on the sick.
@Ger Healy: Whos fault is it if they’ve failed to fulfill financial obligations in 40+ years of employment? There’s a generation of young people forced to emigrate due to a lack of those opportunities who are the victims from this.
@Rochelle: Did you not read the bit where it ssid” recession”?.
Also people make mistskes, did you never make mistake? And what do you suggest happens to people in debt in their later years? Euthanased? Put into a home? Think about what you ate saying.
The OP is saying young people should be given a chance. They have more opportunities and ” chances” these days than there ever were for the previous generations. Current generation and their sense of entitlement want everything handed to them.
Also, what you fail to see is if th OP”s wish comes through, the age which people will be put out to grass will get lower and lower every year. And he will find himself in that cohort of “older” people at a much younger age than it is now.
Be careful what you wish for.
@Rondon(Ciarán Dixon): Actually, some of the old stock in the Civil Service wouldn’t know a days work either.
@DeFonz: The year was 39, the sky was filled with lead, Hitler was headed for Poland and Paddy to Hollyhead. Work till you drop behind the big mixer.
@Dennis Cox: you obviously wouldn’t have the IQ.to pass the civil service exam.WOULD YA LIKE FRIES WI THA.
@Dennis Cox:
I would rather hire older people that had experience in multiple career fields.
@Dennis Cox: when you reach 65, you might want to stay in job as long as you are fit rather than doing nothing at home…
Yet some retired Government ministers have a take home pension of €3500 a week, all men are equal but Td’s and Ministers sap the system.
@Charles Coughlan: I know the poor ministers, how on earth do they manage to survive on so little each week……
@Charles Coughlan: and they’re paid it before a retirement age , give them their generous pension I guess, but at a retirement age
@Charles Coughlan:
Can you name one government minister on a pension of 3,500 per week?
@Nick Allen: take your pick, http://www.thejournal.ie/30-former-government-ministers-receive-pensions-of-over-e100k-275615-Nov2011/
@Nick Allen: I can name two from the top of my head but David sorted that for you, here’s another fact for you, for every euro they pay into their fat cat pension pot the taxpayer pay another three….
@Charles Coughlan: take home pension of €3500 per week?? After tax?? Who is this ???? That’s a gross of about €5k a week or €250k a year pension , so can you name him/her???
@David Connolly: Charles said he knows a ex minister on €3500 net per week , that would mean a gross of €250k per year , your link suggests the biggest is €150k a year , so Charles is telling porky pies ,
@Philip Grant: http://www.rte.ie/iu/pensions/
I still think its all a joke. It should be reverted back to 65yrs of age.. Retire and be atleast fit enough for a few years to enjoy it.
@The Viking: Some people would like to stay at work after 65 while others would like to retire much earlier. They should all be accommodated up to whatever age they want unless they are not able to do the job, whether that is 50, 60, 75, 80.
@The Viking: “reverted back” is redundant. You can’t revert forward.
@Niall O Neill: what’s an elevator called on the way down?
If someone is fit and able to continue work after they turn 65, so what, let then continue, it’s not a magic number where you cease to be functional
I agree that if someone is fit and wishes to continue working, they should not be out of work. Not should their salary be reduced. If a teacher retires on Aug 31st after 40 years teaching and is hired as a sub teacher in Sept 1st, they earn the same as a newly qualified teacher. How daft us that? It’s no wonder that it is impossible to get sub teachers.
@PeteMcC: but you get more for subbing than you do in a new qualified permanent position..
@PeteMcC: I agree in one way, but if they were a terrible teacher (many we have had the experience of) for 40 years because they could not be fired for incompetence why should they be allowed destroy any more young people’s careers.
Maybe if testimony/petitions of past pupils were allowed those who are truly great teachers would be able to carry on indefinitely, those who are not and have spent 40 bitter years ruining a subject protected by teacher’s unions would have to retire, that would indeed serve the next generation.
@Niamh Breslin: how many teachers do you actually think fit that description?
@Siobhán Ni Mhurchú: true for the first year by about €1 per hr but not after that and if/when pay parity is introduced it won’t be true.
@PeteMcC: If think that a retirement age of 65 is proper. Anyone wishing to work beyond that, let them. But in excercising that right, they should also be released into the real world and rat rats of applying for jobs. This fellow has found that he will have a 11k reduction (from that level of pay by the way?) i. the employer he worked for for years. Maybe if he went elsewhere and looked for a job he’d realise that an 11k drop isn’t that bad.
@PeteMcC: what if they hit 66 and are drawing down their pension which is a generous 2/3 final salary scheme plus they’ve had a one off lump sum of over €100K from that scheme, also largely funded by the state. Is it right that they be allowed continue to work, on full pay paid by the state and draw their pension 2/3 salary, largely paid by the state? Sure why wouldn’t you?
@Sean @114: Who gets paid 2/3 their final salary?
@Hugh Jass: DB scheme public servants on 2/3 final salary pension scheme.
There really should be no strict retirement age. The system would work well if between 65 and 70 Older workers phased out of their positions over a number of years, reducing their hours and training up a younger person as a replacement for their role.
It would allow young people to get a foot on the career ladder and gain experience, while also allowing older people to relax more as they near proper retirement.
@ForeverFeel1ng:
So there should be no strict retirement age as long as you are gone by 70? Is that not a strict retirement age albeit 5 years later than it is today?
@Nick Allen: Not necessarily, if you want to work into your 70’s you could but it would allow people to continue to be productive and ease into retirement rather than kicking people out on their 65th birthday.
We do have to stop working at some stage, you can’t deny that humans get physically less efficient as they age.
Plus It’s only retirement, not like someones digging your grave.
I think you’ll find this is a joke! Happy Easter all. Happy April 1st too!
@Frank Duffy: the Journal getting in there early, well they got me.
My mortgage will be paid off when I’m 57, children done college ….I’m retiring at 58 with my DB and DC. Pensions …good luck ..
Do TD take same cut when that turn 65
no, doubting, another headline will appear in 12 months time “clerical officer awarded €100k for age discrimination”
@PeterMcC
PLEASE get your facts right! It simply cannot happen….as if a retired teacher is reemployed, they are no longer contractually employed and are/ can only be paid as per hourly…
I will be 61 whenever I have my full 40 years served but will have to wait 5 yrs for my pension. Surely 40 years is enough to give and be entitled to try to enjoy hopefully few years of health to enjoy life and by then help with grand kids or see a bit of the world. Gov keep changing retirement age simply to save paying back the thousands in taxes we have all paid. Makes my blood boil
No point in working your backsides off after 65. There are no trailers at the end of the hearse. Get your bucket list together and get on with that.
Sur pascal donoghue makes statements like it’s April fools every day!
Did anybody see my auntie her name is ainne yokes
They are on 5 year contracts , it’s not a guaranteed job for life
@PhilipGrant. Good luck with your plans for retiring at 58 with your DB and DC plans. You do know there are Revenue limits and actuarial reductions on early retirement, right? Let us know how you get on.
@Grainne Campbell McKeown. Your post demonstrates a total lack of understanding of how pension funding actually operates. You’re not alone on that but cool the blood. Not worth it!
@Sean114. April fools or not, civil servants are not on 2/3rds final salary pensions PLUS tax free lump sum. The accrual rate is 80ths. Pension is therefore half pensionable salary plus lump sum (which equates to 2/3rds total assuming commutation factor of 9:1 for men and 10.2:1 for women. ). So there.
Could also retire on the nice public sector pension and pick up a private sector job. He obviously wants to work so what’s stopping him.
Better than been fired as many are for the same reason,and think of the pension!
@PhilipGrant. Good luck with your plans for retiring at 58 with your DB and DC plans. You do know there are Revenue limits and actuarial reductions on early retirement, right? Let us know how you get on.
@Grainne Campbell McKeown. Your post demonstrates a total lack of understanding of how pension funding actually operates. You’re not alone on that but cool the blood. Not worth it!
have your say