Public sector workers will have to pay more and retire later to meet the increasing cost of their pensions, according to a report out today.
The Commission on Public Service Pensions, chaired by Prof Dermot McAleese of Trinity College, has called for a new 1 per cent contribution by public servants to meet part of the cost of increasing pensions in line with public service pay.
It also recommends a later retirement age in response to the increase in life expectancy.
The existing level of gross expenditure on public service pensions is expected to more than double over the period 1997 to 2012, and to almost quadruple over the thirty year period to 2027.
The commission has proposed measures which include allowing for early retirement from age 50 at full cost to the individual; a new Additional Voluntary Contributions-type for public servants; and a new early retirement provision which would allow early retirement without benefit cuts in certain limited circumstances.