Incentivised early retirement schemes introduced last year, now available to HSE staff, writes MARTIN WALLIndustry Correspondent
THE GOVERNMENT has lifted the suspension on the operation of its incentivised early retirement scheme in the health service.
Up to 300 staff in the Health Service Executive could leave the organisation as a result of the move, which was confirmed by Minister for Health Mary Harney last week.
Last year the Government introduced incentivised early retirement and career break schemes in a bid to reduce the number of staff on the State’s payroll.
However, the HSE subsequently said it was not in a position to offer the schemes to staff in the health sector as trade unions had advised members not to co-operate with plans for the redeployment and reassignment of staff.
HSE management maintained that arrangements to redeploy personnel within the health service were crucial to facilitate the reduction in staffing numbers under the early retirement and incentivised career break schemes.
But the HSE did process applications from staff to leave under the early retirement scheme.
It is understood that 246 staff were approved in principle to depart although they have not been able to avail of the retirement package up to now.
Informed sources said that a further 50 or so staff were currently appealing a decision in relation to the early retirement scheme.
Ms Harney told the Dáil last week that the HSE had recently requested her department’s approval to lift the suspension as it applied to the incentivised early retirement scheme and to allow it to proceed to process to finalisation those applications received prior to the closing date of October 23rd, 2009.
“Following consideration of the proposal by my department in consultation with the Department of Finance, the HSE has now agreed that the suspension may be lifted in respect of those applications approved by the closing date of the scheme. My department is in touch with the HSE to ensure this initiative commences without delay and in line with the original terms of the scheme,” she said in reply to a parliamentary question tabled by Fine Gael’s Pat Breen.
It is unclear as to why the HSE sought approval to lift the suspension at this stage. The ban on co-operation with redeployment introduced by the trade unions remains firmly in place and is a key element of the campaign of industrial action in protest at pay cuts introduced in the Budget, which has been under way for the past number of weeks.
The incentivised scheme allows an eligible civil or public servant aged 50 or over to retire without actuarial reduction of pension entitlements.
Ten per cent of the relevant lump sum will be payable immediately, with the balance paid later at the normal retirement age of 60 or 65. However, for those who apply now, the full lump sum will not be taxed, even if the Government introduces such a measure in future years.