Report on the Central Remedial Clinic Public Pension Scheme for the Committee of Public Accounts meeting Thursday 19 th December 2013

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1 Report on the Central Remedial Clinic Public Pension Scheme for the Committee of Public Accounts meeting Thursday 19 th December Background to Pensions Function in the Irish Public Health Service The pension scheme provisions which apply within the Irish Public Health Service are primarily grounded in legislation, and cover an extensive range of entitlements within a number of pension schemes. The following are the main pension schemes involved Health Service Executive Employee Superannuation Scheme Voluntary Hospitals Superannuation Scheme (VHSS) Nominated Health Agencies Superannuation Scheme (NHASS) Local Government Superannuation Scheme These Schemes are Public Service Defined Benefit Pension Schemes, funded on a pay as you go basis. The majority of Section 38 Agencies are members of the Voluntary Hospitals Superannuation Scheme or the Nominated Health Agencies Superannuation Scheme. Until the establishment of the Health Service Executive on 1 st January 2005, pensionable employees of the former Health Boards had been registered members of the Local Government Superannuation Scheme. Under the provisions of the Health Act 2004, such employees who transferred to the HSE under Statute became members of the HSE Employee Superannuation Scheme. Arising from the introduction and development of National Shared Services for the HSE in 2006, the National Pensions Management (NPM) Unit was established in Manorhamilton, Co. Leitrim. The National Pensions Management Unit has, for the purpose of pensions administration, two separate Units, i.e. the HSE NPM Unit and the VHSS/NHASS NPM Unit. The HSE Unit is responsible for the application of the HSE Employee, Local Government and Single Public Service Pension Schemes. The VHSS/NHASS Unit is responsible for the Voluntary Hospitals and Nominated Health Agency Scheme. Responsibility for the central approval and processing of pension scheme provisions pertaining to the Voluntary Hospitals Superannuation Scheme (VHSS) and Nominated Health Agencies Superannuation Scheme (NHASS) transferred from the Department of Health to the HSE National Pensions Management Shared Service in February The Department of Health continue to be responsible for Policy Development and Guidance, in conjunction with the Department of Public Expenditure and Reform. 2. VHSS/NHASS National Pensions Management Unit Page 1 of 3

2 The VHSS/NHASS Unit within HSE National Pensions Management serves the employer organisation members of the Voluntary Hospitals Superannuation Scheme and Nominated Health Agencies Superannuation Scheme. Typically, the range of procedures which are carried out in collaboration with the member organisations include the following: Membership Registration New Registration, Reinstatement and Termination Service Verification, Transfer of Service Costing and Purchase of Service, including Notional Service Authorisation of Refunds of Superannuation for Leavers Calculation of Preserved Benefits (persons resigning before retirement age) Checking Estimates Calculation and authorisation of all Retirement Benefits/Contingent Benefits for member organisations. This encompasses the full range of retirement and contingent benefits, as follows: - Minimum and Compulsory Retirement Age Permanent Infirmity Cost Neutral Early Retirement (Actuarially reduced benefits where person retires within 10 years of minimum retirement age) Death Gratuities Spouses and Childrens Pension Scheme Benefits Preparation and Management of Family Law Cases under the Family Law Acts 1995 and 1996 (Pension Adjustment Orders etc) The conjoint working arrangements between the VHSS/NHASS NPM Unit and member organisations pensions staff involve submission of relevant data (registration forms, service details, salaries/allowances) by the member organisations, in order to facilitate checking, calculation, and authorisation by the central unit. Details of final calculations and benefits are subsequently furnished to the relevant member organisations for payment directly by the member organisations. Ensuring compliance with Pension and Family Law Legislation, and with Public Sector Pay Policy are important features of the role of the VHSS/NHASS Unit. The provision of training/information sessions to member organisations pension staff and updating on pension developments generally is another important aspect of the role. A schedule of the Section 38 Agencies who are member organisations of the Voluntary Hospitals Superannuation Scheme, the Nominated Health Agencies Superannuation Scheme and the Local Government Superannuation Scheme is attached for the information of members. 3. Registration of Central Remedial Clinic Employees in the VHSS The background to the registration of Central Remedial Clinic employees in the Voluntary Hospitals Superannuation Scheme may be tracked to a formal Agreement between the Mater Hospital and the CRC in This Agreement related to the rationalisation, development and expansion of medical rehabilitation services in association. Page 2 of 3

3 The Mater Hospital made a formal application to the Department of Health in January 1979 for the admission of CRC staff appointed from 1 st January, 1978, to the Voluntary Hospitals Superannuation Scheme. On the basis of confirmation by the Mater Hospital in August 1979 regarding a number of named CRC staff being on the Mater payroll, approval to this proposal was issued by letter dated 9 th October, 1979 from the Department, subject to a number of specific conditions, including recoupment annually of a sum equivalent to 10% of the salaries of registered employees in order to meet pension costs (employer contribution). A copy of this letter is attached for information. In October 2004 the Central Remedial Clinic applied to the Department of Health for direct admission to the VHSS, rather than continue with the arrangements implemented in The Department responded stating that the CRC did not qualify for entry to the VHSS other than by way of the arrangements outlined in 1979 (copy letter attached for information). This position was further reiterated by the Department in May 2010, following a further submission by the then Chief Executive Officer of CRC to the Secretary General, Department of Health. The Central Remedial Clinic continues to remit employee and employer pension contributions to the Mater Hospital on a quarterly basis. CRC VHSS member employees who retire are paid their lump sum and pension benefits directly from the Mater Hospital. National Pensions Management Unit Manorhamilton 19 th December 2013 Page 3 of 3

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