300 civil servants seek career break

ABOUT 300 staff in the Civil Service have now applied to leave under the Government’s new incentivised career break scheme.

ABOUT 300 staff in the Civil Service have now applied to leave under the Government’s new incentivised career break scheme.

Under the scheme, the Government has offered staff in the public service a special payment of up to €12,500 annually if they take a three-year career break.

The Department of Finance rules for the scheme state that a career break may be allowed for family reasons, other domestic purposes (eg care of a relative), travel abroad, self-employment and educational purposes.

“Career breaks are not available for taking up paid employment in the State or for educational purposes where the student/trainee is in an employment relationship with the training body and is in receipt of a normal salary/wage,” the department’s proposal states.

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In its first indication of the take-up under the scheme to date, the department said last Friday that approximately 300 applications had been received.

The processing of applications for the scheme as well as for the Government’s separate early retirement scheme for staff in the health sector – the largest employer in the public sector with over 111,000 employees – is suspended on foot of a row between HSE management and trade unions over co-operation with redeployment arrangements and other areas of flexibility.

Minister for Finance Brian Lenihan told Labour’s Joan Burton in an answer to a parliamentary question last week that, as flagged in the April budget, the incentivised career break scheme would be extended to local authority and education sectors.

The Irish Times revealed earlier this month that the department believes up to 3,500 staff in the wider public sector could eventually leave under the incentivised early retirement scheme.

The proposed new scheme will allow an eligible civil or public servant over the age of 50 to retire without “actuarial deduction” of pension entitlements.

Ten per cent of the relevant lump sum will be paid immediately with the balance paid at the normal retirement age of 60 or 65.

However, for those who apply to retire now, the full lump sum will not be taxed, even if the Government introduces such a measure in the future.

As of Friday, June 12th, 315 staff in the Civil Service had applied to leave under the incentivised early retirement scheme. It is unclear how many of these applications will be accepted.

Martin Wall

Martin Wall

Martin Wall is the former Washington Correspondent of The Irish Times. He was previously industry correspondent