THE GOVERNMENT’S career break scheme for public servants was “an abject failure”, Fine Gael frontbench spokesman Simon Coveney has claimed.
In a written reply to a parliamentary question on Tuesday, Minister for Finance Brian Lenihan told Mr Coveney: “The information to hand indicates that, by the end of June, nearly 300 civil servants had applied to the special incentive career break scheme.
“The closing date of the scheme for civil servants was July 1st, 2009. Other areas of the public service have set later dates for applications so that the overall impact of the scheme cannot be assessed until later this year.
“The Health Service Executive (HSE) has suspended the scheme because several trade unions have instructed their members not to co-operate with redeployments arising from the operation of the schemes outlined in the supplementary budget,” Mr Lenihan said.
A Department of Finance spokesman told The Irish Times yesterday that the information circular on the scheme was issued on May 1st, which was the earliest date for applications to be lodged.
A separate circular on the incentivised scheme for early retirement was also issued on May 1st with September 1st as closing date.
So far, a total of 394 Civil Service applications had been received, the spokesman said.
Both schemes were announced in the supplementary budget on April 7th.
The career break scheme provides for a period of three years’ leave on a third of normal annual salary, up to a maximum of €12,500 per annum.
Under the early retirement scheme, eligible civil or public servants aged 50 or over will be able to retire and receive an immediate pension, without actuarial adjustment. They will also be entitled to take 10 per cent of their tax-free lump sum payment immediately, with the balance payable at the normal retirement age.
The 394 civil servants who have applied include 120 from the Revenue Commissioners and 61 from the Department of Social and Family Affairs, but only one from the Department of the Taoiseach.
Given the possibility that lump sum payments on retirement may be liable for taxation in the future, the number of applications is expected to increase significantly between now and the closing date.
