Fórsa has welcomed new legislation allowing public servants to retire up to the age of 70.
The legislation completed its passage through the Seanad today (Thursday) and the Bill will become effective as soon as it is signed by President Michael D Higgins.
The new legislation avoids more staff suffering a huge gap in retirement income when forced to leave work a year before they reach the new state pension age of 66.
Fórsa had recently expressed concerns that the legislation could be delayed until next year, which would have meant public servants who turned 65 during the Christmas break would be forced to retire.
A Fórsa spokesperson explained that an amendment to remove the requirement for a commencement order to bring the provisions of the Bill into effect, means that the Bill will become effective as soon as it is signed by the President.
“As the President can sign the Bill on the fifth, sixth or seventh day after it is presented to him for signature, it is likely that the Bill will come into effect over the holiday period. Once the Bill comes into effect, any public servant covered by the legislation who has not already reached their compulsory retirement age will have a new compulsory retirement age of 70 and the choice to work to that age if they so wish.”
“As the President can sign the Bill on the fifth, sixth or seventh day after it is presented to him for signature, it is likely that the Bill will come into effect over the holiday period. Once the Bill comes into effect, any public servant covered by the legislation who has not already reached their compulsory retirement age will have a new compulsory retirement age of 70 and the choice to work to that age if they so wish.”.
Fórsa also wrote to the Department of Public Expenditure and Reform (DPER) this week to advise that, should the legislation pass this week, all public service employers need to advise any staff who are due to reach their 65th birthday during the holiday period that they will no longer be required to retire on that date.
Fórsa’s senior general secretary Shay Cody requested that the department issue a circular in order to ensure the new rules were fully understood: “It would be unthinkable if we were to find after the holiday break that any public servant was obliged to retire based on the old legislation.”
Fórsa’s senior general secretary Shay Cody requested that the department issue a circular in order to ensure the new rules were fully understood: “It would be unthinkable if we were to find after the holiday break that any public servant was obliged to retire based on the old legislation.”.
Earlier this year the administration bowed to union pressure and agreed to legislate to give civil and public servants the option to retire at any age between 65 and 70 if they chose.
This was necessary because many civil and public servants depend on the state pension for a substantial part of their retirement income. The issue has had a massive impact on the individuals who are caught offside by the current legal requirement to retire at age 65 or, in some cases, before.
Interim measures, which allow them to be re-hired until age 66, are unpopular as they treat staff as if they were newly employed. This also means a significant drop in income, even though they are still working.