Almost 500 civil servants retired early due to ill health since 2017

Almost €190 million has been spent on pensions and lump sums for civil servants who had to retire due to ill health since 2017, according to newly released figures.

Some 499 civil servants have retired early as a result of ill health over the past almost six years at a cost of €187.8 million.

In total, 1,397 people have taken early retirement from the Civil Service, including 898 who have retired for reasons other than ill health.

The non-ill health early retirements are said to be “cost neutral”.

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The Department of Public Expenditure (DPER) – which released the figures – said this group of retirees received an actuarially reduced pension and lump sum from an earlier age aimed at ensuring no additional cost to the exchequer.

Early retirement on the grounds of ill health is based on medical grounds, not age.

The department said if a staff member had completed at least five years of service and could not continue to work due to a permanent disability which was not self-inflicted, they may be eligible for ill health retirement.

No particular medical conditions are specified but one source with knowledge of the system said people suffering from cardiac conditions or cancer were often among those taking early retirement.

The numbers taking early retirement due to ill health have been trending downwards since 2018 when 113 left the Civil Service for that reason. There were 77 in 2020, 72 in 2021 and just 26 so far this year.

Meanwhile, the number taking cost-neutral early retirement has, for the most part, been increasing from 117 in 2017 to 191 in 2021.

Some 129 civil servants have taken this option so far this year.

A DPER spokeswoman said the department had not carried out analysis on trends relating to the decrease in ill health retirements in recent years or increase in cost-neutral early retirements.

People who joined the Civil Service prior to the introduction of the Single Public Service Pension Scheme in 2013 can take cost-neutral early retirement at 50 if the minimum pension age of 60 applies because they were recruited before March 31st, 2004.

The early retirement age is 55 if a minimum pension age of 65 – the retirement age for a post April 2004 recruit – applies.

A 2018 DPER report on projected retirements from the Civil Service from 2019 to 2028 estimated that about 15.6 per cent of employees retire on medical grounds and on cost-neutral early retirement based on historical data.

Certain categories of workers including members of the Gardaí, Defence Forces personnel, prison officers and firefighters can retire early due to their roles – for example, on reaching the age of 55 – and are therefore not eligible for cost-neutral early retirement.

The overall cost of pensions and lump sums for those who retired early between 2017 and to date in 2022 is €490.2 million, with €302.4 million of this deemed to be cost neutral.