Raising retirement age first step in defusing time bomb

CHARLIE MCCREEVY took the first steps yesterday to defuse the public pension time bomb by raising retirement ages for new entrants to certain public service jobs, but leaving arrangements for existing public service employees unaffected.

He also brought in provisions to allow new entrants to the public service to stay on in their jobs after they reach 65.

Perhaps with one eye on the resistance faced by continental governments in raising retirement ages, the minister decided against making any changes that would affect those already working in the public service. The new provisions will apply only to those who join the public payroll from April 1 next year.