Public servants recruited from January 2011 will have to make do with a reduced pension and a later retirement age under new pension cutback plans announced by the Ministry of Finance. Under the plan, designed to cut back on the public service pensions’ bill, the minimum retirement age for new recruits is to be raised to 66. The current minimum retirement age is 65 but most public servants can stop work on a full pension at age 60 as long as they have 40 years' service. Moreover, in a move that will significantly cut back a public servant's pension, the final pension will be based on 50% of career average earnings rather than 50% of final salary, as at present. Originally put forward by Finance Minister Brian Lenihan in last year's budget, the announcement has been the subject of negotiations between the public service unions and the finance department at the Labour Relations Commission for the last few months. The unions have yet to endorse the plan though it is understood the department will proceed regardless.
English: http://www.tribune.ie/news/home-news/article/2010/oct/10/smaller-pensions-and-later-retirement-for-new-civi/
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For more information, please contact the editor Maarten van Klaveren, Amsterdam Institute for Advanced Labour Studies (AIAS) M.vanKlaveren@uva.nl. You may find further information on the ETUI atwww.etui.org, and on the AIAS at www.uva-aias.net. © ETUI aisbl, Brussels 2009.