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Investigation Report on the delay by the MWHB in calculating arrears of superannuation payable by two Public Health nurses for previous service

1. Complaint and Background

1.1 The subject of this investigation is a delay by the Mid-Western Health Board in calculating the arrears of superannuation contributions payable in respect of previous non-pensionable (temporary, wholetime and part-time) service, in health board and voluntary hospitals, of two Public Health Nurses appointed to permanent/pensionable positions with the Board. This delay resulted in substantially higher costs being incurred by the complainants in paying the arrears.

1.2 In 1997, an agreement on the pay and conditions of nurses, incorporated in the Programme for Competitiveness and Work, adopted the principle that temporary nursing employment should be reduced to the minimum level consistent with operational requirements. With this in mind it was agreed that 1,700 Health Board nursing posts would be converted from temporary to wholetime permanent status through confined competitions. In addition to the confined competitions, open competitions were advertised nationally to fill permanent nursing posts in health boards

1.3 In May 1997, the Mid-Western Health Board announced a confined competition for the purpose of converting posts from temporary to permanent status in the following grades:

• Registered General Nurse;
• Registered General Nurse with Midwifery Qualifications;
• Registered Psychiatric Nurse; and
• Public Health Nurse.

1.4 Ms Mary Dillon (not her real name) applied for the permanent position of Public Health Nurse, via the confined competition, on 30 May 1997, and, following an interview, she was advised, on 10 September 1997, that it was proposed to offer her a permanent wholetime position, subject to the completion of a medical examination. She was subsequently appointed to a permanent position of Public Health Nurse on 6 December 1997.

1.5 In October 1997, the Mid-Western Health Board placed an advertisement in the Sunday Independent inviting applications for permanent appointment to the position of Public Health Nurse by way of open competition. Ms Patsy O'Sullivan (not her real name) applied for the permanent position of Public Health Nurse on 30 October 1997 and, following an interview, she was advised on 9 December 1997 that she was being placed on a panel from which vacancies in the grade were to be filled. On 23 January 1998 Ms O'Sullivan was offered the position of Public Health Nurse. She was appointed with effect from 26 January 1998.

1.6 Persons appointed to a permanent wholetime post in a health board are eligible to join the Local Government Superannuation Scheme. Membership of the scheme is compulsory for any officer eligible to join it. The particulars of office relating to both of these posts required all persons, who became pensionable officers of the Board and who, like the two complainants, were liable in their new appointments to pay class A rate of PRSI contribution (fully insured), to make superannuation payments to the Board at a rate of 1.5% of their pensionable remuneration plus 3.5% of net pensionable remuneration. (Note: net pensionable remuneration means pensionable remuneration less twice the annual rate of social insurance old age contributory pension payable at the maximum rate to a person with no adult dependent or qualified children).

1.7 The rules governing the payment of superannuation contributions by fully insured permanent officers of health boards in respect of previous non-pensionable temporary wholetime and part-time service are contained in the Local Government (Superannuation) (Consolidation) Scheme, 1998. Under the Scheme it is compulsory for contributory members of the Scheme to have previous temporary wholetime and part-time health board service reckoned for superannuation purposes and to pay superannuation contributions in respect of such service. Under the terms of the Scheme, a member has also the option of reckoning non-pensionable service given in most other public service bodies e.g. non-pensionable service in a voluntary hospital, subject to the payment of the appropriate contributions. At the time of their appointments both Ms Dillon and Ms O'Sullivan had previous reckonable temporary nursing service and both were required to pay superannuation contributions due on all reckonable health board service.

1.8 Under Articles 64 (5) and 80 (2) (b) of the provisions of the Local Government (Superannuation) (Consolidation) Scheme, a fully insured officer, entitled to reckon a period of previous part-time or temporary wholetime service as service for pension purposes is required to make contributions in respect of such service at a rate levied on the person's pensionable pay at the time the contributions are being paid. In the case of fully insured officers, the method of levying of contributions, as provided for in the Scheme, is almost invariably consistent with how such contributions are levied in other public sector pension schemes in respect of similarly insured personnel.

1.9 Ms Dillon was advised on 19 October 2000, almost three years after the date of her appointment, that the total arrears payable in her case for superannuation contribution purposes in respect of her health board and voluntary hospital service would be £9,492.32 (€12,052.76). Ms O'Sullivan was advised on 1 February 2001, just over three years after the date of her appointment, that the total arrears payable in her case for superannuation contribution purposes in respect of health board and voluntary hospital service would be £12,587.49 (€15,982.82).

1.10 The arrears calculations were based on the salaries applying at the date they were advised about the amount due in each case rather than the salaries that applied at the time of their appointment. Both claimed that if the calculations had been made based on their salaries at the time of appointment their arrears bill would have been much less.

1.11 In light of the delay which had occurred in the calculation of arrears, they asked the Board to review their respective superannuation arrears with a view to obtaining a reduction in the amount being sought. When the Board refused to accede to their request they complained to me.

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