Joan Burton (Dublin West, Labour)
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Question 128: To ask the Minister for Finance if he has sought or received advice as to the constitutionality of the introduction of an average 4% cut in public sector pensions, for those already in receipt of a pension or who retire before the end of the grace period, on the basis that it may involve the retrospective and unilateral amendment of an employment contract whereby public servants make a contribution to their pension through superannuation over the course of their working lives in the expectation of a given income in retirement; if he is satisfied that this reduction in pensions does not violate the Croke Park Agreement; and if he will make a statement on the matter. [47180/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I can inform the Deputy that the Office of the Attorney General advised on all aspects of the Financial Emergency Measures in the Public Interest Bill. The public service pension reduction measure is in accordance with the Croke Park Agreement. Section 3 provides that the calculation of public service pensions is not affected. "Nothing in section 2 shall affect the calculation of any public service pension entitlement (including an entitlement to a lump sum and an entitlement to periodic payments of pension or other benefits) of a person who is a pensioner or becomes a pensioner on or at any time before the relevant date or, in the case of a pensioner falling under paragraph (c) of the definition of "pensioner" in section 1, at any time after that date." Implementation of the measure, therefore, does not impact on the calculation of pensions, nor is there any change in the future method of determining pension increases. Also, in the case of those retiring up to end-February 2012, the measure will be applied to pensions as calculated by reference to the pre 1 January 2010 pay rates.