The Minister for Public Expenditure and Reform, Brendan Howlin, recently published the Public Service Pensions (Single Scheme) and Remuneration Bill 2011. The planned reforms to the public service pension system will move employers away from defined benefits arrangements with a view to reducing the bill for public service pensions, estimated to be €2.9 billion for 2011.
The Bill provides for a new single scheme applicable to all new entrants to the Public Service. In the new scheme members will accumulate funds towards pensions which will be calculated annually at a fixed percentage of pay and uprated by reference annually to CPI. The Bill also provides for an increase in the minimum retirement age for new entrants to the Public Service.