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Temporary Arrangements On Compulsory Retirement Age

On the 5th December 2017, the Government agreed to accept a proposal from the Minister for Public Expenditure and Reform to make changes which will affect the compulsory retirement ages of some public servants. In summary, these are:

  • Under future legislation, the compulsory retirement age for public servants recruited before 1st April 2004 will be increased to 70 years – to be the same as the compulsory retirement age of Single Scheme members;
  • Under future legislation, any additional service above age 65 would be pensionable but subject to a maximum of 40 years pensionable service.

We do not have any further information on the timelines for the introduction of this new legislation. 

Pending the introduction of this new legislation, interim arrangements have been put in place by the Department of Education and Skills to facilitate public servants who may seek to be employed for a period of time beyond their current retirement date.   These interim arrangements (effective from the 5th December 2017) are set out below.

 

Key points to note (before making an application) under the interim arrangements for the education and training sector

  • These interim arrangements will only apply to staff members who retire on or after Dec 5th, 2017 until the legislation referenced above is implemented.
  • Any member of staff who has retired before 5 December 2017, or who has retired before their compulsory retirement age, shall not be eligible to claim retention, or re-engagement, under the terms of these interim arrangements.
  • These interim arrangements shall only permit eligible staff to remain in employment in UCD until they reach Contributory State Pension age (currently 66).
  • All applications must be approved by DES in advance of commencement.
  • Applicants who are given approval to be employed will retire, take their pension and lump-sum as normal, and the returning salary will be established within the normal pension abatement rules i.e. pension plus new salary cannot exceed the salary level prior to retirement.
  • Applicants will be paid according to the Non-PPC (pre 95) scale.
  • Applicants will be re-engaged in the same role, on the same work pattern, with the same or fewer hours subject to the business need of the organisation.
  • Applicants who are on secondment prior to reaching the age of 65 shall revert to the terms and conditions of their substantive post upon re-engagement, subject to the terms and conditions of the secondment post.
  • Applicants will be placed on the first point of the non PPC (pre 95) pay scale of the substantive post that they held upon reaching the age of 65.
  • No pension contributions will be payable and no pension benefits accrued.
  • Pension Related Deductions will continue to apply.
  • Regardless of their PRSI classification before they retired, applicants will become Class A for the duration of their re-engagement.
  • These arrangements shall not apply to staff whose compulsory retirement age is already 66 or higher.
  • Additional documentation is available below.

 

Application Process

Applicants should complete an Application for Retention Form at the earliest opportunity but at a minimum, no later than 8 weeks prior to reaching the age of 65.

The completed application is sent to your manager who will sign it and forward it to the relevant signatories (1) Head of School or Unit, (2) Finance Manager and (3) College Principal / Vice President.

Fully completed applications are sent to Resourcing at: hrhelpdesk@ucd.ie

Resourcing will forward the application to the Department of Education and Skills for approval.

Once approved Resourcing will confirm the abatement details with the Pensions Office and advise your manager of the maximum salary and associated FTE which can be paid to you.

Resourcing will issue a contract for signature.

 

Additional Documentation 

1. Department of Public Expenditure and Reform, Circular 21/2017 (pdf; links to external site)
2. Department of Education and Skills, Temporary arrangements relating to compulsory retirement age (pdf) 
3. Application for Retention Form (Word)