Dáil Éireann Debate, Tuesday - 16 December 2025
385. Deputy Aengus Ó Snodaigh asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation the provisions in place for a person who has more than 40 years' service; the reason a pension contribution is deducted when a person has reached the maximum service; the beneficiary of these monies if the pension is capped at 40 years; and if he will make a statement on the matter. [71821/25]
View answerAs the Deputy may be aware, I have overarching responsibility for public service pensions policy, including in relation to pension contributions.
There are a number of different pension schemes in operation in the public service; in answering this query I will refer to those for entrants prior to 2013 as pre-existing schemes. The other relevant scheme here is the Single Scheme which was introduced under the Public Service Pensions (Single Scheme and Other Provisions) Act 2012 (the "2012 Act").
Members of the Single Scheme continue to accrue pension benefits beyond 40 years, and they are not subject to the 40-year rule as set out in the 2012 Act. It is a Career-Average Defined Benefit Pension Scheme. Single Scheme retirement benefits are based on a percentage of total pensionable earnings throughout the individual's public service career as a member of the Scheme.
In accordance with the 2012 Act, pensionable service under pre-existing public service pension schemes is capped at 40 years for the purpose of calculating retirement benefits. This cap applies across all such schemes and is implemented in accordance with Circular 13/2020, which sets out financial limits for members with service in more than one scheme.
In line with scheme rules, standard pension contributions, including those for the Spouses’ and Children’s Pension Scheme, continue to be deducted while the person remains in employment. Pension contributions to the Spouses’ and Children’s Pension Scheme in excess of 40 years are refunded to the member upon retirement, starting with the earliest contributions. Main scheme contributions are not refundable.
In general pre-existing schemes operate on a final pensionable remuneration basis, this means that while contributions are paid throughout the career based on varying rates of remuneration, benefits are based on the final pensionable remuneration at retirement.
It should be noted that the contributions paid throughout the course of the member's career do not directly correspond to retirement benefits payable in the public service pension schemes and do not reflect the full cost of those benefits.
