The Minister for Public Expenditure and Reform has signed the Public Service Pensions Single Scheme Commencement Order which commenced the Single Scheme for new entrants to the public service who join on or after 1 January 2013.
The provisions of the Single Scheme will not impact existing public servants. The new Single Scheme is a career average one, has a normal retirement date linked to State pension age and provides for pension increases that will be linked to the Consumer Price Index.
This is a significant change from current pension arrangements which are based on final salary. The Minister stated that “this will be fairer for all staff. Pension schemes based on final salary are more beneficial to those who are promoted later in their careers, who often accumulate rapidly accelerated benefits in the final years of service. The result can be that individuals receive much larger benefits in retirement relative to their contributions over their careers.”