S.I. No. 212/1997 - Houses of the Oireachtas (Members) Pensions (Amendment) Scheme, 1997

S.I. No. 212 of 1997.

HOUSES OF THE OIREACHTAS (MEMBERS) PENSIONS (AMENDMENT) SCHEME, 1997.

I, RUAIRÍ QUINN, Minister for Finance, in exercise of the powers conferred on me by section 6A (inserted by section 5 of the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices (Amendment) Act, 1960 (No. 12 of 1960), and amended by section 4 of the Oireachtas (Allowances to Members) and Ministerial, Parliamentary and Judicial Offices (Amendment) Act, 1983 (No. 32 of 1983), and by section 7 of the Oireachtas (Allowances to Members) (Amendment) Act, 1994 (No. 21 of 1994)) of the Oireachtas (Allowances to Members) Act, 1938 (No. 34 of 1938), hereby make the following scheme:

1.

• (2) This Scheme shall be deemed to have come into operation on the 31st day of October, 1995.

2.

"additional allowance" means an allowance payable to a member pursuant to section 2 or 3 of the Oireachtas (Allowances to Members) (Amendment) Act, 1994 (No. 21 of 1994);

"currently payable" in respect of an additional allowance referred to in Clause 3 or 4 of this Scheme means payable at the time a pension or gratuity, as the case may be, is due to come into payment;

"the new Scheme" has the meaning assigned to it by Clause 2 of the Houses of the Oireachtas (Members) Pensions (Amendment) (No. 2) Scheme, 1992 ( S.I. No. 354 of 1992 );

"the old Scheme" has the meaning assigned to it by Clause 2 of the Houses of the Oireachtas (Members) Pensions (Amendment) (No. 2) Scheme, 1992;

"the Scheme" means the Houses of the Oireachtas (Members) Pensions Scheme within the meaning of section I of the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices (Amendment) Act, 1992 (No. 3 of 1992), as amended by the Houses of the Oireachtas (Members) Pensions (Amendment) Scheme, 1992 ( S.I. No. 300 of 1992 ), the Houses of the Oireachtas (Members) Pensions (Amendment) (No. 2) Scheme, 1992, and the Houses of the Oireachtas (Members) Pensions (Amendment) Scheme, 1993 ( S.I. No. 111 of 1993 ).

• (2) Any other word or expression that is used in this Scheme and is also used in the Scheme has, unless the contrary intention appears, the meaning in this Scheme that it has in the Scheme.

The New Scheme

3.

where—

F is the pension as increased by this Scheme,

P is the pension payable under the new Scheme before being increased under this Scheme,

A is—

• (I) where the former member had been in receipt of an additional allowance in respect of one position only, the additional allowance currently payable to the holder of such position, or

• (II) where the former member held more than one position in respect of which he had been in receipt of an additional allowance, the weighted average additional allowance calculated as follows—

where—

AA1...AAn represent the additional allowances currently payable in respect of each position, which was held by the former member in respect of which an additional allowance was payable, and

T1...Tn represent the periods in days during which each of those positions was held,

Y is—

• (I) the total number of days in respect of which an additional allowance was payable to the former member, or

• (II) 7,300 days, whichever is the lesser.

(2)A pension payable under the new Scheme to the widow of a member, or a former member, who had been in receipt of an additional allowance (excluding any amount payable to the widow in respect of a child or children of the member or former member) shall be increased in accordance with the following formula—

where—

Fw is the pension as increased by this Scheme,

Pw is the pension payable under the new Scheme (excluding any amount payable to the widow in respect of a child or children of the member or former member) before being increased under this Scheme,

A and Y have—

• (I) in relation to a former member, the meaning assigned to them by subclause (1) of this Clause, and

• (II) in relation to a member, the meanings that would be assigned to them by the said subclause (1) if "member" were substituted for "former member" in each place where it occurs in that subclause.

• (3) A pension payable under the new Scheme to or in respect of a child of a member, or former member, who had been in receipt of an additional allowance shall be increased in accordance with the following formula—

Fc = Pc x (1 + (FwPw))

where

Fc is the pension as increased by this Scheme,

Pc is the amount of the pension under the new Scheme before being increased under this Scheme,

Fw is the amount of the increased pension payable to the widow of the member or former member under subclause (2) of this Clause or which would be payable if the member or former member had been survived by a widow,

Pw is the amount of the pension payable to the widow of the member or former member under the new Scheme or which would be payable if the member or former member had been survived by a widow (excluding any amount payable in respect of a child or children of the member or former member) before being increased under this Scheme.

• (4) A gratuity payable under Clause 5 of 5A of the new Scheme to or in respect of a former member who had been in receipt of an additional allowance shall be increased in accordance with the following formula—

where—

Gf is the increased gratuity payable under this Scheme,

G is the gratuity payable under Clause 5 or 5A of the new Scheme before being increased under this Scheme,

A and Y have the meanings assigned to them by subclause (1) of this Clause.

• (5) A gratuity payable under Clause 5D of the new Scheme in respect of a deceased member, who had been in receipt of an additional allowance, shall be increased as follows:—

( a ) if the deceased member was in receipt of an additional allowance on the date of his death, the gratuity shall be increased by the greater of—

• (i) the annual amount of the additional allowance which was payable to the member on the date of his death, or

• (ii) the amount by which the gratuity would have been increased if calculated in accordance with the formula set out in subclause (4) of this Clause,

or

( b ) if the deceased member was not in receipt of an additional allowance on the date of his death, the gratuity shall be increased by the amount referred to in paragraph (a) (ii) of this subclause.

• (6) ( a ) Notwithstanding any other provision of this Clause, where a person, who had been in receipt of an additional allowance, exercises an option for payment of reduced pension and gratuity in accordance with subclause (2) of Clause 5B of the new Scheme,

( b ) On the death of a person referred to in paragraph (a) of this subclause, any increase in widow's or children's pensions payable in respect of the person under subclauses (2) and (3) of this Clause shall be calculated as if the person had not exercised the option referred to in paragraph (a) of this subclause.

• (7) ( a ) Where a refund of contributions is made under subclause (1) of Clause 5H of the new Scheme to a person who had been in receipt of an additional allowance, such refund shall include any contributions made pursuant to the Houses of the Oireachtas (Members) Pensions Scheme (Additional Allowances) (Deduction of Contributions) Regulations, 1994 ( S.I. No. 218 of 1994 ).

( b ) Where, pursuant to subclause (3) of Clause 5H of the new Scheme, a person referred to in paragraph (a) of this subclause repays to the Trustees contributions previously refunded to that person, such repayment shall include the contributions deducted under the Houses of the Oireachtas (Members) Pensions Scheme (Additional Allowances) (Deduction of Contributions) Regulations, 1994, and refunded to the person in accordance with paragraph (a) of this subclause.

( c ) Where a person who had been in receipt of an additional allowance is paid a gratuity under the new Scheme, which has been increased in accordance with subclause (4) of this Clause, the provisions of subclause (2) of Clause 51 of the new Scheme concerning the repayment of a gratuity to the Trustees shall be construed as referring to the gratuity as so increased.

• (8) Where a person who had been in receipt of an additional allowance receives an original gratuity within the meaning of Clause 51 of the new Scheme, which has been increased in accordance with this Clause of this Scheme, and the person receives a subsequent gratuity within the meaning of Clause 51 of the new Scheme, no period of service which has been reckoned under this Clause of this Scheme towards an increase in the original gratuity, shall be reckoned under this Scheme towards an increase in the subsequent gratuity payable to the person:

Provided that where an original gratuity paid under the old Scheme was increased pursuant to Clause 4 of this Scheme, the period of service in a position in respect of which an additional allowance has been payable, which reckoned towards the increase in that gratuity in accordance with Clause 4 of this Scheme, shall be taken into account in the calculation of the subsequent gratuity under this Clause, but the amount of the subsequent gratuity shall be reduced by an amount equivalent to—

where

O is the amount by which the original gratuity was increased pursuant to Clause 4 of this Scheme,

A1 is the amount of the additional allowance or the amount of the weighted average additional allowances payable to the person concerned, as calculated for the purposes of the calculation of the increase in the original gratuity (namely A as defined in subclause (1) of Clause 4 of this Scheme) during the period in respect of which the original gratuity was paid,

A2 is the amount which would have been arrived at if A1 had been calculated by reference to the annual rates currently payable in respect of the additional allowance or allowances concerned.

The Old Scheme

4.

where—

F is the pension as increased by this Scheme,

P is the pension payable under the old Scheme before being increased under this Scheme,

A is—

• (I) where the former member had been in receipt of an additional allowance in respect of one position only, the additional allowance currently payable to the holder of such position, or

• (II) where the former member held more than one position in respect of which he had been in receipt of an additional allowance, the weighted average additional allowance calculated as follows-

where—

Aa1 Aan represent the additional allowances currently payable in respect of each position, which was held by the former member in respect of which an additional allowance was payable, and

Tt1 . . . Ttn represent the periods in days during which each of those positions was held,

Y is—

• (I) the total number of years during which an additional allowance was payable, such number of years being calculated by dividing by 365 the total number of days during which an additional allowance was payable to the person and reckoning on a pro rata basis any fraction of a year in the result of the calculation, or

• (II) 26^2/3

whichever is the lesser.

• (2) A pension payable to a former member, who had been in receipt of an additional allowance, who opts to receive a pension and gratuity under Clause 5A of the old Scheme, in lieu of the pension which would otherwise have been payable to him under the old Scheme, shall be increased in accordance with the following formula—

where—

Fr is the pension as increased by this Scheme,

Pr is the pension payable under Clause 5A of the old Scheme before being increased under this Scheme.

A and Y have the meanings assigned to them by subclause (1) of this Clause.

• (3) A gratuity payable to a former member who had been in receipt of an additional allowance, who opts to receive a pension and gratuity under Clause 5A of the old Scheme, in lieu of the pension which would otherwise have been payable to him under the old Scheme, shall be increased in accordance with the following formula—

Gf = Fr x 3

where—

Gf is the gratuity as increased by the Scheme,

Fr has the meaning assigned to it by subclause (2) of this Clause.

• (4) ( a ) Where a pension payable to a widow under subclause (10) of Clause 5 of the old Scheme, or to an orphan under subclause (13) of that Clause, is calculated by reference to the pension payable to a former member or which would have been payable to a member if he had ceased to be a member on the date of his death, the pension so payable to the widow or orphan, as the case may be, shall be increased in proportion to the increase under this Scheme in the pension payable to the former member or which would have been payable to the member if he had ceased to be a member on the date of his death.

( b ) Notwithstanding paragraph (a) of this subclause, where a widow's or orphan's pension, under subclause (10) or subclause (13) respectively of Clause 5 of the old Scheme is calculated by reference to the pension which would have been payable to the member or former member at the date of his death as if he had eight years service, the pension so payable to the widow or orphan, as the case may be, shall be increased in proportion to the increase under this Scheme in the pension which would have been payable to the member or former member if he had eight years service as a member on the date of his death:

Provided that it shall not be assumed for the purposes of such calculation that the member or former member had any more service in any position in respect of which an additional allowance was payable than the actual service given in such a position.

• (5) A gratuity payable under subclause (1) of Clause 5C of the old Scheme in respect of a deceased member who had been in receipt of an additional allowance shall be increased as follows—

( a ) if the deceased member was in receipt of an additional allowance on the date of his death, the gratuity shall be increased by the greater of—

• (i) the annual amount of the additional allowance which was payable to the member on the date of his death, or

• (ii) the amount yielded by the formula—

where A and Y have the meanings that would be assigned to them by subclause (1) of this Clause if "member" were substituted for '"former member" in each place where it occurs in that subclause,

or

( b ) if the deceased member was not in receipt of an additional allowance on the date of his death, the gratuity shall be increased by the amount referred to in paragraph (a) (ii) of this subclause.

• (6) A pension payable under subclause (1) of Clause 5C of the old Scheme to the widow of a deceased member, who had been in receipt of an additional allowance, shall be increased by the addition thereto of the amount yielded by the formula-

where A and Y have the meanings that would be assigned to them by subclause (1) of this Clause if "member" were substituted for "former member" in each place where it occurs in that subclause.

• (7) A pension payable under Clause 5D of the old Scheme to or in respect of a child of a deceased member, who had been in receipt of an additional allowance, shall be increased in proportion to the increase in the pension payable to the widow of the member under subclause (6) of this Clause, or which would have been so payable if the member had been survived by a widow.

• (8) ( a ) Where a refund of contributions is made under paragraph (a), (b) or (c) of subclause (1) of Clause 5B of the old Scheme to a person who had been in receipt of an additional allowance, such refund shall include any contributions made pursuant to the Houses of the Oireachtas (Members) Pensions Scheme (Additional Allowances) (Deduction of Contributions) Regulations, 1994.

( b ) Where, pursuant to subclause (4) of Clause 5B of the old Scheme, a person referred to in paragraph (a) of this subclause repays to the Trustees contributions previously refunded to that person, such repayment shall include the contributions deducted under the Houses of the Oireachtas (Members) Pensions Scheme (Additional Allowances) (Deduction of Contributions) Regulations, 1994, and refunded to the person in accordance with paragraph (a) of this subclause.

( c ) Where a person who had been in receipt of an additional allowance is paid a gratuity under the old Scheme, which has been increased in accordance with subclause (3) of this Clause, the provisions of paragraph (b) of subclause (2) of Clause 5A of the Old Scheme concerning the repayment of a gratuity to the Trustees shall be construed as referring to the gratuity as so increased.

Indexation of pensions

5 (1) Where the additional allowance or allowances by reference to which a pension payable under the new Scheme or the old Scheme is or are increased, the pension shall be increased by the difference between the amount thereof and the amount of pension that would have been payable if it had been calculated by reference to the additional allowance or allowances increased as aforesaid.

• (2) Subclause (1) of this Clause shall not apply to a pension payable to a former member or to or in respect of a child or children of such member if—

• (i) the pension is payable under the old Scheme, and

• (ii) the former member does not satisfy any of the conditions set out in paragraphs (a), (b) and (c) of subclause (15) of Clause 5 of the old Scheme.

GIVEN under my Official Seal, this 9th day of May, 1997.

RUAIRÍ QUINN,

Minister for Finance.

EXPLANATORY NOTE.

The purpose of this Scheme is to set out the basis on which certain additional allowances payable to members of the Oireachtas (for example in respect of responsibility as Chairperson of an Oireachtas Committee) can be reckoned in the calculation of benefits under the Houses of the Oireachtas (Members) Pensions Scheme. These allowances are payable pursuant to section 2 or 3 of the Oireachtas (Allowances to Members) (Amendment) Act, 1994 (No. 21 of 1994), and pension contributions are already being deducted from them under the Houses of the Oireachtas (Members) Pensions Scheme (Additional Allowances) (Deduction of the Contributions) Regulations, 1994. This Scheme allows service by a member of the Oireachtas in a position which attracted the additional allowance to be reckoned on a pro-rata basis towards the pension benefits of the member. It also makes provision for appropriate treatment of widows' and children's pensions and certain other benefits.