HSE pensions deadline savings only €57m

The HSE will save only €57 million in the first year after an expected 3,000 staff leave under the Government’s pensions deadline — only one third of the expected savings.

Health chiefs will overall save about €180m from the early retirement scheme, but the bulk of this will go towards pension pots for health workers. The figures emerged as HSE chief Cathal Magee addressed the Oireachtas Public Accounts Committee.

The state will pay retiring workers half a year’s salary for their pension, a lump sum when they retire, but funding will also be lost by the reduced number of pension contributions as well as the fall-off in pension levy payments, Mr Magee said.