Healthcare workers guaranteed pension lump sum on retirement after previous delays

It is understood that they will get up to 70pc of their pensions in the month they depart.

Workers complained that they were waiting several months for their payments while waiting for a full calculation of what they were due.

In a message to members, Siptu said it has secured part payment of pensions on the date of a staff member’s retirement.

It said this would happen rather than waiting several months for its full calculation prior to any money being made available.

Kevin Figgis, Siptu health divisional organiser said the union, as part of the Ictu Staff Panel of Health Unions, has campaigned for the roll out of a scheme where staff retiring from the HSE would receive a part payment of their expected pension on retirement.

Today’s News in 90 Seconds – June 7th 2024

“The previous system had been for the pension only to be paid after the retirement date with many members not receiving any money for many months, if not years after they left the service,” he said.

He said the HSE rolled out a pilot scheme to provide part payment of pension to retirees on the date of their retirement, with the balance to follow once final calculations were made.

He said the HSE has extended the scheme.

It will now be available in the East, North-East, Tullamore, Kilkenny, Cork and Manorhamilton superannuation regions, he said.

Mr Figgis said the union understands that the scheme has not been rolled out in the West or Mid-West regions yet.

“In the pension regions listed where the scheme has been rolled out, we understand the HSE now seeks to provide a part payment of up to 70pc of pension in the month a staff member retires or full payment, if possible,” he told members.

“We expect to receive confirmation of ‘Go Live’ dates for each area.”

The HSE is currently processing most pension claims in full within eight weeks once the documentation has been received on time, he said.

This is a significant reduction on the time which was evidenced to unions prior to their campaign, he added.

A HSE spokesperson said it aims to process and pay pension benefits within two months.

“Whilst there have been some delays, in the vast majority of cases this target is now being met,” he said.

He said processing and payment can take longer if the target cannot be met for a variety of reasons.

“The HSE is rolling out the administration of a part payment of pension in an effort to improve turnaround times and ensure members receive a level of payment based on verified service to cover any interim period of finalising a full calculation,” he said.

He said the level of payment is dependent on the worker’s level of service that can be verified.

“ A part payment of lump sum is also available if members wish to receive this,” he said.

Meanwhile, Siptu said the HSE expects all pensioners will receive an increase in their pensions due since January 1 this year in their June payment.

This follows an increase in salaries negotiated under the current public sector pay deal. The pensions of many former public servants are linked to wages.