A COMMISSION has been appointed by the Government to investigate the rising cost of public service pensions. Its scope includes the implications of claims for early retirement from groups such as teachers and nurses.
Public service occupational's pensions are expected to more than double over the next 30 years. Last year they cost £540 million, but the estimated cost by 2025 is £1.4 billion.
The commission is to be chaired by Prof Dermot McAleese of Trinity College, Dublin. Its membership will include representatives from private enterprise, trade unions and the Pensions Board, as well as senior civil servants. Its secretary will be Mr Conor McGinn of the Department of Finance. It is due to report in 1998.
Financial commentators and employer organisations have expressed mounting concern at the tax implications of public service pensions. However, any changes without the consent of the powerful public sector unions would be difficult.
Announcing the establishments of the commission yesterday, the Minister for Finance, Mr Quinn, went out of his way to praise the ICTU for agreeing to participate in the commission.