Officials first became aware of an error which could lead to Ministers and civil servants owing thousands of euro to the State in 2017, eight years before it became public.
The “serious and systemic” issues at the National Shared Services Office (NSSO) may also lead to some Ministers being owed thousands of euro. Sums that will need to be recouped by the State range from hundreds of euro to just over €30,000.
They were first disclosed to the public by Minister for Public Expenditure and Public Service Reform Jack Chambers earlier this month. Aside from the implications for ministerial pensions, a pool of up to 13,000 civil servants may be affected by the matter and are having their pension deductions checked.
However, Mr Chambers told the Oireachtas finance committee on Wednesday that the issue stemmed from a pension appeal decision that was issued in 2017 when an individual questioned their own pension entitlement.
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There is also an issue in relation to the pensions of 30 retired senior civil servants and one of them could owe as much as €280,000
But it was years before the shared payroll office explored the wider implications of the decision, Mr Chambers told Labour Party finance spokesman Ged Nash.
“It took the NSSO until July of 2024 to query if the approach following the appeal in 2017 should apply to a broader group,” Mr Chambers told the committee.
Following that, there was interaction between the NSSO and the Department of Public Expenditure last year on the application of the allowances, he said. That concluded earlier this year.
“Indeed, the gap between that period is of concern,” he said. “That’s why we need an external audit.”
There is also an issue in relation to the pensions of 30 retired senior civil servants and one of them could owe as much as €280,000 as a result of the NSSO errors.
Mr Chambers said he became aware of the issue at the end of April, and it was further scoped in his department in May.
He said draft terms of reference for an external audit of the issue were received this week and an appointment of an external auditor would follow in the coming weeks.
The Minister said that the expectation of the pool of 13,000 potentially-affected civil servants, who were on work-share arrangements, is expected to be smaller once the audit is completed.
Mr Chambers said it was important that there be accountability around the issues which have come to light.
He told the committee the audit would take a number of months.
“It is important as part of the broader accountability oversight but also transparency around what other issues could be identified,” he said. “It’s really important for that to happen quickly, and that will be the breadth of the terms of reference which we will establish.”
Mr Nash told The Irish Times it was important the NSSO and those involved in the review be given space to properly identify the extent of the issue.
“However, it does need to be done as expeditiously as possible and we need to understand how and why this issue had become a wider, more systemic problem for the system, and to apply the lessons from this experience,” the Louth TD said.
“It is also important that retired civil and public servants who may be caught up in this, through no fault of their own, are informed as soon as possible about the situation that applies to them, and that ways are identified for these matters to be put to bed in a way that is reasonable and fair to everyone.”
It is believed most current Government Ministers and Ministers of State will owe money to the State due to errors in their pension deductions. Some may be due some money back.
