Incentivised Early Retirement Scheme - Uptake

I think it's more to incentivise the scheme even more and to increase the fear factor so that more people will take it up. I'm not saying that there won't be significant cuts in public sector pay, but that putting this 'clarification' out there is to assist in reducing the numbers on the payroll.
 
I suppose you could look at it both ways. 1, as an indication of cuts on the way. 2, at least the retiree is getting a choice of sorts when the cuts are applied. I expect pay cuts will be implemented from 1st January.
 
I think there is no doubt about pay cuts coming down the track. I work in a university, and I am availing of this scheme, but I am required to stay until end of June 2010 - I gather there have been only a handful of applicants (and I don't know any of them!), but our staff age profile is very low. We have not been notifiied of any extension beyond 16 October; neither have I been notified of an option to pull out of the scheme if my lump sum is decreased because of a pay cut. Thanks for pointing out this statement from the Department of Finance.
 
my husband is in the same situation, Vienne86. If you want to PM me, it would at least be good to connect with someone in the same position.
 
Well we finally got the email about the extension and also referring to the piece on the Department of Finance website just after 6 p.m. yesterday. To be fair to our HR department, they did send me a personal email today, and after an exchange of emails, the situation is a salary decrease announced in the budget, I can ask for my case to be reconsidered with regard to the June departure date or else I can have the option of withdrawing from the scheme.

I think the fact that I received a personal email on this points to a very low uptake of this scheme in our place.
 
Well if they wanted to further incentivise the scheme, surely the logical option would be to give the 90% at the more favourable rate irrespective of when the retiree left work, or am I misreading the clarification ???
 
I agree, Tentman. The current situation could well encourage some people to actually pull out of the scheme!
 
Well the deadline has passed !! Whether it will be the last we will see of the ISER is another question. How many have jumped ????
 
"In order to avoid a destabilising rate of retirement among older public servants, the pension entitlements of those retiring in 2010 will not be affected"

That is a quote from the Public Service section of the Minister's speech. Does this mean that anyone availing of the ISER in 2010 or indeed those who will retire on age or full service will do so with their entitlements, as they now stand, protected ?
 
It would be great if it did, but it flies in the face of the Department of Finance circular mentioned in an earlier post. I am one of those with a delayed departure date, and I am applying to be let leave before the 1 January. I don't know if the request will be granted, but I'll let you know!
 
Well I think it would be a shame to see a mass exodus having to go by end of year. As previously stated the logical thing would be to let everyone choose, within reason, their date of departure. But then again, as we all know, logic dose'nt always apply.

Edit: Actually it does in this case !!! "To ensure that any increase in the number of retirements can be managed, the legislation on pay reductions in the public service will provide that any retirements in 2010 would be on existing, pre-cut pay terms. "

Thats from www.budget.ie
 
That is very interesting. Just thinking about it, some poor unfortunate who is, say, 64, and retiring anyway in 2010, would be now having a mad scramble to retire before 31 December. With luck, they might treat the ISER applications the same way. I have written to our HR department to ask for retirement on 31 December instead of 30 June, and they are seeking clarification on how to implement the pay cuts to ISER applicants. Until they get that, they are just noting my application and not processing it.
 
I think that explanation in the Summary indicates that you do NOT have to go by end of this year.
 
Yes, I think (and hope) you are right. I have been told informally that my employer also thinks that this is the case and that I should not worry. I am wondering why the Department of Finace posted something to the contrary on thier web site in October - and I was specifically written to by our HR department, pointing this out. Perhaps someone in Finance decided that it was not such a good idea after all. It really made no sense, so let's hope that is the end of it.
 
Recent clarification from the Department of Finance reads as follows:

"An officer who retires in 2010 will have their pension benefits calculated by reference to the scales applying on 31 December 2009, with incremental credit on those scales if appropriate. This includes officers who retire in the normal way on age grounds, those retiring on health grounds or under Cost Neutral Early Retirement or the Incentivised Scheme of Early Retirement. It also applies in the case of a preserved benefit coming into payment in 2010".
 
shirazman,
Do you have a link to that quote please? I presume the reference to "pension benefits" includes lump sums, whether paid out in full (in the case of retirement on age) or in part (in the case of ISER)?
 
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