Unions have achieved two important clarifications to ‘career average’ pension arrangements, which were introduced for staff who joined the public service from 2013. The Department of Public Expenditure and Reform has agreed that members of the career average single scheme who are – or who have been – sick and in receipt of half pay will accrue pension benefits on a full pay basis.

Also, in cases where staff retire on health grounds, the pension and lump sum payable can now be enhanced by the award of additional amounts, subject to certain limits and conditions. These will generally be limited by the period between the retirement date and normal retirement age, with an overall cap of ten times the last full year’s accrued benefit.

Some 60,000 public servants – about a sixth of the current total – are now covered by the career average scheme, which is significantly less attractive than the pre-2013 pension benefits. The new arrangements were introduced by the Government in 2012 without agreement with the unions.

Read the circular relating to sick leave calculations HERE.

Read the circular relating to retirement on medical ground HERE.