Minister Howlin announces reformed Top Level Appointment Committee (TLAC) terms
Minister Howlin stated “this Government supports a strong policy of ensuring that senior public sector managers show leadership on the issue of pay. Since taking office we have introduced a pay cap for the public sector of €200,000. All Secretaries General in the Civil Service fully adopted this from day one.
We are now reforming the Top Level Appointment Committee (TLAC) terms that apply to Secretaries General on retirement. This would apply to all newly appointed Secretaries General with effect from today. Under existing arrangements Secretaries General can retire early with immediate pension, added years and with severance. These practices will end for Secretaries General appointed from now on.
For all future appointments there will be:
- No added years
- No pension payable prior to the minimum pension age
- Offers of alternative posts where Secretaries General are from the civil service and do not have 40 years service and have not reached minimum pension age
- No severance pay except in the case where a person is not of minimum pension age or has not been offered an alternative post; then severance of up to one year’s salary applies.
- No severance payment where a person is offered an alternative post and refuses.
These actions will result in substantial savings for the taxpayers.”
The Minister added “A balance has to be struck to ensure that the right people capable of taking on the complex challenges our country faces now, and in the future are in place. Accordingly we will review the new terms after 12 months to see that they are effective in attracting the desired candidates.”
ENDS
Notes to Editor
It is envisaged thatCountyManagerswill be subject to similar arrangements, though the precise arrangements for them is being considered by the Minister for the Environment, Community and Local Government.
Changes to Secretaries Generals terms to date
In common with all public servants, Secretaries-General have had their pay reduced substantially and they are also paying the pension levy.
For Secretaries General Grade 1 retiring after February, 2012, the pension will be based on the reduced pay of €228,466 (as opposed to €285,341) and all new appointments are paid at €200,000. All current Secretaries General have taken voluntary waivers and reduced their pay to €200,000.
Lump sums over €200,000 are now taxed.
The new single public service pension scheme will introduce a career averaging system for all new entrants including Secretaries General, rather than one based on final salary.
