Decentralisation

Ok-

From the quarterly national household surveys from the CSO:

http://www.cso.ie/publications/labour/qnhs.pdf

Employment Participation rate: 59.8%

(that is the % of the population of over 15 years of age actively engaged in employment (current number of people in the labour market = a little over 3 million)

Total in Employment: 1,836,200

Total Unemployed: 84,200

Population of Dublin: 1,122,821

Percentage of labour force in Dublin: 31.48%

Population of Wexford: 116,596

Unemployment in Dublin: 44,953 (53.4% of total)

Unemployment in Wexford: 7,031 (8.3% of total)

Percentage unemployment in Dublin: 3.4%

Percentage unemployment in Wexford: 4.6%

National unemployment rate: 4.6%

Highest unemployment area: Border areas – 6.6%


S.

arcadegame2004 wrote:

Oh dear...0.7% wrong!

Nope:

Unemployment rate in Wexford = 4.6%
Unemployment rate in Dublin = 3.4%

The highest unemployment rate in the country is not in Wexford- its in Monaghan, and its 6.6%, not the 9% you are quoting.

I would also draw your attention to something you have to take into account when working your stats- different labour force participation rates in different parts of the country. I.e. You are only unemployed, if not gainfully employed but currently seeking employment. If you are neither employed, nor actively seeking such employment, you are not considered unemployed. Thus 64% of the population of Dublin is considered to be part of the labour force, while the figure is 53% for Wexford (reflecting larger numbers of single people and households with both partners employed in Dublin than in Wexford). This can be a matter of either economic necessity or choice- and is not quantified by the CSO.

To ignore factors such as the above when analysing the labour force participation rate, is meaningless.

I'd also be very curious to see where you are getting your figure of 9% unemployment from- as I am unable to find it in official sources. Note: the nos. of unemployed quoted by the CSO for Wexford- are for the entire county (i.e. the 7,031 unemployed people is all those signing on at Wexford, Gorey, Enniscorthy and New Ross) (and are broken down by town) not just for Wexford itself- the figure for Wexford town itself is in fact 2,715)

Read the figures again in the two links I quoted.

S. McCarrick

ishmael whale wrote:

Apparently an early retirement scheme for public servants is being introduced (which, the press release says, should not be confused with an early retirement scheme – em). Encouraging early retirement is certainly a novel approach to the looming pensions crisis.

Why the need to persist in incurring costs to continue a decentralisation policy so devoid of merit?
……”

Actually- this is different from "Early Retirement" in the traditional public sector sense- in that superannuation benefits would be reduced by an actuarial table with an ammended CCOPS formula. While someone who retires at 50 would have another 15 years to go to age 65, they would not necessarily receive the 5/8's pension a reduction of 15 years in draw down date would entail, but a smaller sum, to be decided by a revised common actuarial figure- to take into account of their obviously much longer life expectancy...... ok maybe I could have phrased that a bit better- but you get the picture.....

Traditionally (aka the previous Early Retirement scheme in the 80's) when someone was retiring early and being allowed draw their pension early- their entitlement was actually topped up with X number of years, so their final pension figure was more closely aligned with what they would expect, had they 40 years of service (the compulsary amount for a full civil service pension).

There were other manners of topping this up- particularly for the higher grades (and anyone who entered the service as a graduate) whereby they were (and indeed still are) entitled to claim "Professional Added Years" to take into account the fact that they have relevant experience to their jobs gained prior to entry to the service (* Note: this option is not open to the vast bulk of civil servants, who did not enter the service as graduates, regardless of the fact that they may subsequently have gained many acedemic distinctions, while in the employ or on leave from the service).

So- technically, the announcement is correct- it will not have a draw on pensions- over the long term, it is in fact cost neutral- as the revised actuarial tables will reduce pensions people may claim. From that perspective- it may not be all that clever as a ploy to get rid of a few people- if they feel their drop in income would not be sustainable- regardless of what the relative merits of retiring at age 50 may seem to a general member of the public.

S.

ishmael whale wrote:

Smccarrick

Am I right in saying your essential point is that the previous early retirement scheme involved a financial bonus – i.e. if I worked for 30 years I would get more than 30 years worth of pension – and that the proposed arrangement has no bonus in that if I worked for 30 years I simply get 30 years worth of pension, spread out over a longer period as I have retired at say 55 instead of 65. The only change is that people can draw their entitlement earlier than they can at present.

That’s fine so far as it goes, and I wouldn’t argue with your statement that from the individual employee’s point of view this offer may not be attractive. But I am somewhat puzzled at why this move is being made at all when the general principle seems to be to raise retirement age. When the pension bubble hits the ratio of dependents to wage earners will increase, and to the extent that this measure has any impact it seems to add to this problem by taking people out of the workforce. jd’s point about skills loss also seems relevant.

Hope this elucidates:


To all staff Department of XXXXXXX

You may be aware from recent media reports of a number of changes affecting pensions. The background to this is that last week the Government approved the implementation of some of the recommendations of the Commission in Public Service Pensions. The finer details of these changes are still being worked out and we will issue a circular with detailed instructions on their application in about 6/8 weeks. In the meantime the information is set out below.

1. Introduction of cost neutral early retirement

This will allow an established officer over the age of 50 (55 in the case of new entrants from 1April 2004) who wishes to leave before the age of 60 (65 in the case of new entrants) to have the option of (a) waiting until the minimum retiring age of 60 (65) at which time he or she would receive preserved lump sum and pension in the normal way i.e. based on reckonable service at time of leaving and uprated by salary values applicable at age 60 or (b) taking an actuarially reduced pension and lump sum at the time of leaving. The actuarial reduction will be done by applying the appropriate percentages from the table below to the amount of the benefit. There will be no added years


Staff with a minimum retiring age of 60


Age last Pension Lump sum
birthday

50 62.4% 82.2%
51 65.1% 83.9%
52 67.9% 85.5%
53 71.0% 87.2%
54 74.3% 88.9%
55 77.8% 90.7%
56 81.6% 92.4%
57 85.7% 94.3%
58 90.1% 96.1%
59 94.8% 98.0%



An example

A person aged 50 on last birthday whose pension and lump sum would work out at say €20,000 (per annum) and €60,000 respectively based on reckonable service, would receive €12,480 (per annum) and €49,320 respectively. In the normal way the pension would increase in line with pay increases applicable to serving staff.

2. Compound interest rate

The current public service pension interest rate which applies in particular to repayment of marriage gratuities will be reduced from 6% to 4% with effect from 14 November 2000.

3. A new calculation formula for integration between social insurance and public service pensions to boost the aggregate retirement income of lower paid public servants.

This new formula would only affect established officers appointed after 5 April 1995, un-established officers and pensioners whose pensions are integrated with Contributory Old Age Pension rates. A pro rata process would apply to part-time public servants.

4. Notional added years (for professional purposes).

A new scheme for new entrants will be introduced.

5. Reckoning of allowances held at retirement for pension purposes

The calculation of allowances will be based on the best 3 consecutive years in the 10 years preceding retirement. It is not anticipated that this will affect civil servants.