Public service bodies are generally established by legislation. A body’s establishing legislation will set out the functions assigned to that body and make provision for the appointment of staff to carry out those functions. It also makes broad provision in relation to the terms and conditions of those staff, including in relation to pensions.
The Single Scheme, which was introduced from 1 January 2013 under the Public Service Pensions (Single Scheme and Other Provisions) Act 2012 (‘the 2012 Act’), is the pension scheme that applies to all first time entrants appointed to pensionable positions in the public service after that date. It also applies to previous public servants re-joining the public service, unless they qualify for one of the exemptions set out in the 2012 Act. The most common exemption applies where a public servant previously held membership of a pre-existing public service pension scheme and did not subsequently have a break in public service employment of more than 26 weeks. Such persons normally become members of the pre-existing public service pension scheme operating in their new workplace.
Although the Single Scheme will apply to any person appointed to a pensionable position for the first time on or after 1 January 2013, and to certain persons re-joining the public service after a break in service of greater than 26 weeks, it is necessary for public service bodies to continue to operate a pre-existing public service pension scheme for those staff members who are entitled to such membership.
It is therefore necessary when establishing a new public service body (and when dissolving or amalgamating existing public service bodies) to make legislative provision for the making of a pre-existing public service pension scheme for staff who are not eligible for membership of the Single Scheme, and to provide for the funding of body’s pension liabilities relating to that scheme. Such provisions normally require a scheme to be made via Statutory Instrument (S.I.) with the approval of the body’s line minister, and the consent of the Minister for Public Expenditure, NDP Delivery and Reform.
A ‘model’ pension scheme is set out under S.I. 582/2014 – ‘Rules for Pre-existing Public Service Pension Scheme Members Regulations 2014’. This ‘model scheme’ essentially sets out template pension scheme rules that non-commercial state bodies can adopt as the pre-existing public service pension scheme applying to their staff who are not eligible for membership of the Single Scheme.
As the name suggests, the rules are based on “model” – or standard – public service pension terms. The aim of setting out template terms in S.I. 582/2014 is to speed up the process of formalising a pre-existing public service pension scheme, and to ensure that public servants receive broadly equivalent pension terms, regardless of where in the public service they work.
Letter to Personnel Officers 22 December 2014 - ‘Reform of administrative arrangements for the establishment/approval of certain superannuation schemes in non-commercial state bodies’ notified the administrative arrangements to apply where a body is making a pension scheme, or where formalisation of a body’s pension scheme is outstanding. It informed bodies that ‘model’ scheme terms would become the ‘de facto’ pension scheme applying in all non-commercial state bodies going forward.
The model scheme (S.I. 582 of 2014) is normally adopted as the pension scheme applying in a body by way of a Statutory Instrument made with the approval of the relevant line minister and the consent of the Minister for Public Expenditure, NDP Delivery and Reform, in accordance with the requirements of the body’s establishing legislation.
The establishment of a pension scheme by way of S.I. is a lengthy process that requires scrutiny of a wide range of information, including:
- the relevant legislative provisions,
- any previous or existing schemes in place in respect of the body,
- any previous or existing schemes in place in respect of bodies being dissolved or amalgamated with a current or new body,
- the history of the body,
- the funding arrangements for the current and/or new body,
- the draft pension scheme, with particular reference to any deviations from the model scheme and the necessity of such deviations.
The approval of a pension scheme for non-commercial state bodies and the making of a formal S.I. can therefore take a significant amount of time. Where necessary, a body may operate the model scheme for its staff on the basis of administrative sanction, having obtained the approval of the Department of Public Expenditure, NDP Delivery and Reform to do so, pending the formal making of the pension scheme.
This is to ensure that public servants’ pension contributions are collected and they may receive the pension benefits to which they are entitled, notwithstanding the administrative requirements and associated time taken to formalise a pension scheme.
1. Each non-commercial state body submits a draft model pension scheme based on S.I. 582/2014 to the Department of Public Expenditure, NDP Delivery and Reform, through their parent department.
2. The draft scheme should highlight any deviations from the model scheme terms, the reasons for those deviations, and must also include certain amendments (details on necessary amendments can be obtained from the Department of Public Expenditure, NDP Delivery and Reform).
3. The body must also submit the following documentation:
- Copy of the legislation that enables the making of a scheme,
- Copy of the administrative sanction allowing the body to operate the scheme on an administrative basis,
- Copy of any previous schemes that need to be revoked.
4. The body must indicate their funding arrangements, specifically in relation to pension liabilities, including details of how their pension contributions and ASC will be received and accounted for and the reporting arrangements regarding same.
5. The body should provide contact details for the relevant personnel, their parent department and the relevant Vote Section in the Department of Public Expenditure, NDP Delivery and Reform.
6. Once the necessary documents have been received, reviewed and the terms of the scheme have been approved, the draft S.I. and letters of approval will be issued.
7. The parent department prepares a vellum copy of the draft S.I. for signature by the relevant minister(s). The parent department must submit the vellum copy of the S.I to the Department of Public Expenditure, NDP Delivery and Reform.
8. The parent department/body arranges for the S.I. to be laid before the Houses of the Oireachtas.
- S.I. No. 582/2014 - Rules for Pre-existing Public Service Pension Scheme Members Regulations 2014
- Letter to Personnel Officers 22 December 2014 - Reform of administrative arrangements for the establishment/approval of certain superannuation schemes in non-commercial state bodies
