Agency may not have funds for retirees

An emergency move to cut HSE pension lump sum provision is “risky” and could lead to insufficient money being available to retirees, according to an admission in the HSE Service Plan.

Fianna Fáil branded the confession further proof of “creative accounting” within the health service, as it faced budget cuts of €1bn.

The service plan report states: “If the number of staff retiring is greater than the number of pensions provided for, there will be insufficient funding available.”

Money will also have to be found to pay the costs of making about 3,600 workers redundant.

Fianna Fáil spokesman on health Billy Kelleher said the transfer of funds is alarming: “It clearly shows that they are involved in creative accounting. They had identified the lump sum payment for 2013, that has now been rolled into 2014.

“There isn’t a sustainable funding model in place for health services in 2014.

“The minister was incapable of securing enough funding at Cabinet, so next year we are starting on the premise that we just don’t have enough money to fund the health services.”

Cork TD Mr Kelleher said patients lives are put at risk due to confusion over funding: “One of the big holes in the plan is the €108m in unspecified cuts.

“Clearly, it will be taken from frontline services and there will be a further row back in the area of acute hospital services.

“If you take another €600m out of the health service next year then clearly you are going to put further lives at risk.

“Next year between services being cut and increased charges you have about €1bn to be found.”

He said: “Early next year there is going to be a massive reduction in activity in our hospitals, and in care for the elderly.”