FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : THE IRISH SPORTS COUNCIL - AND - PUBLIC SERVICE EXECUTIVE UNION DIVISION : Chairman: Mr McGee Employer Member: Mr Doherty Worker Member: Ms Ni Mhurchu |
1. Purchase of Service for Pension Purpose.
BACKGROUND:
2. This case concerns a dispute between the Irish Sports Council (ISC) and the Public Service Executive Union (PSEU) in relation to the Purchase of Notional Service for Pension Purposes. The issue in dispute concerns an employee of the Irish Sports Council who had enquired about purchasing additional service.
It is claimed that the worker made immediate enquiries to purchase service on taking up his position with the ISC in 1998.
Management contend that the facility to purchase service was not introduced until late 2003 and had offered the claimant purchase of service at the rates applicable at that time.
The dispute was not resolved at local level and was the subject of a conciliation conference under the auspices of the Labour Relations Commission. As agreement was not reached the matter was referred to the Labour Court on 13th January 2009 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 6th March, 2009.
UNION'S ARGUMENTS:
3 1 On commencing work with the ISC in 1998 the worker made immediate enquiries in relation to the purchase of notional service. When the opportunity arose, the worker should have purchased at the appropriate 1999 rates.
2 The cost of the purchase of service to the worker at current rates would be unsustainable. An expectation was created that the earlier rates would apply.
EMPLOYER'S ARGUMENTS:
4 1 It was not possible to purchase notional service in 1999. The provision to purchase notional service came about in late 2003. As a result it would be impossible to offer 1999 rates as no scheme existed at that time.
2 In an attempt at resolution, management have offered the worker purchase of service at the rates that applied when the scheme was first introduced in 2003. This is a significant saving on current purchase rates.
RECOMMENDATION:
Having considered the submissions of the parties, the Court notes the offer by the Employer to extend the offer made in 2008 which allowed the claimant to purchase service retrospectively based on his rate of salary applicable on 22nd December 2003.
The Court recommends that this offer should be accepted as being fair and reasonable in all the circumstances.
Signed on behalf of the Labour Court
Raymond McGee
23rd March 09______________________
AHDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.