| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : Irish Economy Last Updated: Aug 23, 2010 - 8:24:15 PM


Irish public sector pay/pensions to rise 16% in period 2005-2010; Pay up 11%: Pensions up 66%; Pensioner numbers rise 43% to 103,400
By Finfacts Team
Jul 14, 2010 - 6:20:40 AM

Email this article
 Printer friendly page

The Department of Finance said in its Analysis of Exchequer Pay and Pensions Bill 2005 - 2010 report, published this week, that the net Irish public sector Pay and Pensions bill is projected to increase by 16% in 2010 to €15.09bn - - a decrease of 8.4% over the 2009 figure of €16.47bn. While pay increased 11% in the period 20015-2010, the pensions bill has risen by 66% since 2005 while pensioner numbers have increased by 31,000 or 43% to 103,400.

Pensions now account for 12.9% of the total Pay and Pension Pay bill, up from 9% in 2005. Overall, the pensions bill has increased from €1.35bn in 2005 to €2.23bn in 2010 representing a 65.6% increase over the period (pay in contrast rose by 10.8%). The pensions bill has increased by 35% since 2008. This is mainly attributable to an increase in retirements in 2009 including those under the Incentivised Scheme for Early Retirement.

The Department said the proportion of the pay bill accounted for by the different sectors has remained broadly similar over the period. The exception is the education sector pay bill, which increased over the period by 20.4% (compared to a 13.6% rise in the rest of the Pay and Pensions bill), and is expected to account for 32.6% of the total pay bill in 2010 as opposed to 31.4% in 2005. The proportion of the pay bill accounted for by the health sector has reduced from 41.7% to 40.2% over the period notwithstanding an increase in numbers employed in that sector.

The number of Exchequer-funded public service employees (excluding local authorities) estimated for 2010 is 277,604 (whole-time equivalents), an increase of 26,210 or 10.4% over 2005, mainly in Health and Education (Table IX). This reflects a 10.5% increase in staff in the Health sector and a 17.3% increase in staff in the Education sector over the period;

Public service numbers and pensioners, based on whole time equivalent measurement increased to 380,953 in 2010 from 373,228 in 2009. While serving numbers are estimated to further decrease from a 2009 outturn of 278,106 to 277,540 in 2010 pension numbers are estimated to increase from 95,122 to 103,413 over the same period. Figures are based on end 2009 outturn and an 2010 estimate.

There is 1 pensioner for less than 3 workers.

The Department said for the first time since 1933, legislative measures were brought forward by the Government to reduce the salaries of public servants through the enactment of the Financial Emergency Measures in the Public Interest (No. 2) Act, 2009 with effect from January 1, 2010.

The scale of reductions provided for in the Act resulted in overall reductions in salaries for public servants in general ranging from 5% to 15%. The average reduction being 6.2%.

There was no reduction in pensions even though increases in pay are passed on to pensioners, including the sham benchmarking increase of 9%. So retirees now can get 70% of their last salary   --  a rise during the worst recession in 80 years.

The Department says that consultations on a new single pension scheme for all new entrants to the public service will be concluded in time for legislation to be enacted to allow for the introduction of the scheme on January 1, 2011. Discussions will take place on the method of determining pension increases for existing public service pensioners and current public servants in the context of the review of pay policy in Spring 2011

The majority of Irish private sector workers do not have an occupational pension scheme; many of those who do face fund deficits and expected low returns over the coming decade.

In the past 10 years, Irish managed pension funds have had negative returns in real (allowing for inflation) terms. 

Analysis of Exchequer Pay and Pensions Bill 2005 - 2010

Related Articles
Related Articles


© Copyright 2010 by Finfacts.com

Top of Page

Irish Economy
Latest Headlines
Finfacts launches new news site
Irish Farmers & Milk Prices: 'Shackles' off in April; Demanding safety-net in August
Irish pension managed funds returns at over 12% year-to-date in 2015
Irish chartered accountants' salary packages surge 13% in 12 months
Irish services PMI fastest rate since late 2006; Official data up only 2.4% in 12 months
Irish Economy: Tax €893m above target in year to July — €653m from corporation tax
Fact and Fiction: Time to review Ireland's economic statistics?
Irish M&A deals H1 2015: Dutch or UK firm acquires Irish firm for €32.6bn - they are both American
Irish manufacturing PMI strong in July
Irish Economy: Fall in GNP in Q1 2015; GDP rises
Irish Economy 2015: Central Bank lauds strong recovery; Time to start paying down debt
Irish Budget 2016: Ibec demands 20 tax cuts, spending and investment rises
Low pay in Ireland; Lowest social security & corporate taxes in Europe
Ireland vs Greece: Enda Kenny's false claims on growth, taxes and debt
Irish standard of living in 2014 below Euro Area average, Italian level; Prices 5th highest in EU28
Irish goods exports rose a record 30% in April - due to fake tax-related transactions
Mexican tall ship to sail into Dublin on June 17th
Irish industrial production up 20% in first four months of 2015; Construction down 2.6% in first quarter
Irish Economy 2015: ESRI slams return to boom-time pro-cyclical fiscal policy
Irish pension fund returns in average range 1.6% - 1.8% in May 2015
Irish service sector PMI remains strong; Tax avoidance clouds data
Ireland: Official unemployment rate at 9.8% in May; Broad rate at 19% — 440,000 people
Ireland: Fiscal Council warns of dodgy forecasts, no plan; OECD warns of new property bubble
Irish Public Finances: Tax revenue in first five months of 2015 €734m ahead of target
No simple measure of economic progress in Ireland: GDP & GNP defective
Irish manufacturing PMI rises in May; Production up unbelievable 45% in year to March!
ESRI says data volatility hinders Irish economic forecasting; Tax avoidance taboo cause
Ireland at 16 in international competitiveness ranking; US, Singapore and Hong Kong on top
Irish Economy 2015: Sectors to add 200,000 jobs?; Broad jobless rate at 19%
Irish Export Performance: Myths and reality - Ireland is a poor exporter
Irish Economy: 41,300 jobs added in 12 months to Q1 2015 - Construction up 19,600
China-Ireland: Economic relationship on a slow burn
Estonia, Austria, France, Ireland head global alcohol rankings
Irish Exchequer Returns: Tax receipts under target in April but ahead in year
Irish service sector PMI rose in April
Irish manufacturing PMI remained strong in April- includes overseas manufacturing
Irish Live Register + 90,000 activation scheme numbers at 439,000 in April
Ireland: Coalition drops 2018 full-employment target
Ireland Spring Statement: Noonan promises 200,000 net new jobs by 2018
Irish Economy 2015: Retail sales volume up 1.4% in month of March