HSE voluntary redundancy and retirement schemes announced

Health Minister Mary Harney today announced government approval for a voluntary early retirement scheme and a voluntary redundancy scheme for certain categories of staff in the public health service.

HSE staff and unions were informed of the decision this morning, with some 28,000 staff estimated to be eligile.

Health chiefs hope around 5,000 staff will take advantage of the schemes, under terms described as "fair and reasonable".

“The purpose of the schemes is to achieve a permanent reduction in the numbers employed in the public health sector from 2011 onwards and to facilitate health service reform,” minister Harney said in a statement.

Funding of up to €400m will be made available in 2010 to fund the up-front costs of both schemes.

Minister Harney confirmed that the schemes will be open to both management and administrative grades, and support staff, but said that priority will be given to the management and administrative grades. Those wishing to avail of the schemes must retire or resign by December 30.

“There is general acceptance of the need to reduce the numbers of management and administrative staff in the health service,” Minister Harney said.

“For that reason, all applications from management and administrative staff to avail of the schemes will be approved.”

Under the terms of the voluntary redundancy scheme, eligible staff over 50 can immediately claim their pension entitlements, while staff opting for voluntary redundancy can avail of a severance payment of three weeks’ pay per year of service as well as their statutory entitlement, subject to an overall limit of two years’ pay or half of the salary payable to preserved pension age.

Minister Harney described the terms on offer as “fair and reasonable”.

Employees in the eligible groups have up to November 19 to submit their applications.