Dáil Éireann Debate, Thursday - 11 December 2025
73. Deputy Mairéad Farrell asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation the position regarding the report on overpayments in the Civil Service and amongst office holders; and if he will make a statement on the matter. [70764/25]
Amharc ar fhreagraThe matters that the Deputy is referring to are in the main a delay in addressing taxes due on retirement and anomalies in deductions of various pension contribution.
The NSSO has been working intensively to rectify all errors. The issues that have arisen are individually complex in nature and relate to three distinct cohorts:
Some retired civil servants who previously work-shared and whose pensions were calculated incorrectly.
Current and former Ministers and Office Holders; and
Some retired Senior Civil and Public Servants.
NSSO has put in place number actions to prioritise the resolution of these issues. This included organisational restructuring and reassignment of operational staff to create dedicated remediation teams to work through each issue while relevant processes have also been thoroughly reviewed.
Shorter Working Year / Pensionable Allowances
Significant progress has been made with the review of work-sharing civil service retirees. The review has found that some staff who availed of a Work Share Pattern and/or Shorter Working Year in the 10 years prior to their retirement should have had their pensionable allowances calculated differently.
Of the active civil service pensioners identified on the NSSO system in receipt of pension payments based on allowances earned pre-retirement established that less than 20% of these people may be impacted. The process of refunding underpayments owed to these retired civil servants commenced in September and is nearing completion.
Ministerial Allowances:
Incorrect Pension schemes and ASC rates were applied to a number of current Ministers, some former ministers and office holders leading to incorrect pensions deductions. The amounts range from hundreds of euros to the low €30,000's in terms of monies to be recouped. Some Ministers are unaffected. All Ministers of the existing Government are now on the correct deduction rates since June 2025.
I understand that this process is nearing completion with the majority of current Ministers having now entered recoupment plans. The NSSO is actively engaging with those not yet in recoupment.
In relation to the former Ministers the NSSO continues to engage with these individuals to finalise recoupment plans.
CET / WHT:
NSSO identified errors with Chargeable Excess Tax (CET) and Withholding Tax (WHT) liabilities.
• CET is a tax on pension funds at retirement which exceed the Standard Fund Threshold, which is currently €2 million.
• Withholding tax is deducted from retirement lump sums over €200,000.
The NSSO carried out a full review of all retirees across Secretary General, Principal Officers, and Assistant Principals grades to identify affected retirees. The majority of those impacted have now entered recoupment plans or are engaging with the NSSO to finalise their recoupment plans.
The liabilities owed for this cohort range from a few hundred euros to €211,000.
EXTERNAL AUDIT UNDER WAY
The NSSO identified these issues earlier this year and brought them to the attention of my department. My Department and the NSSO have subsequently put in place new measures and controls to ensure these matters do not reoccur.
An external audit of the NSSO is currently being overseen by Mr Derek Moran, the chair of the NSSO Advisory Board. The audit is examining the NSSO’s salaries and pensions processes. Independent auditors RSM Ireland commenced their review in September, and good progress has been made to date. It is expected to take up to six months and it is envisioned that once the audit is complete, and where data privacy allows, that the findings and recommendations of the audit will be published.
