Brendan Howlin (Wexford, Labour) | Oireachtas source

We have had discussions in respect of pensions and pension entitlements. The Deputy will be aware that one of my first actions on becoming Minister was to impose a new ceiling on wage levels in the Civil Service and public service generally. For example, we set a new ceiling of €200,000 for the Taoiseach. This figure was further significantly reduced under the Financial Emergency Measures in the Public Interest Act 2010, and the salaries of all senior civil servants have been reduced to below that level. The reduction for some senior officials was 35%, which will obviously have an impact on their pensions.

On the people who have retired, the Financial Emergency Measures in the Public Interest Act 2010, which commenced in January 2011, imposed significant reductions in public service pensions that were in payment at the time through the public service pension reduction, PSPR.

Bands were used in a progressive fashion and I subsequently amended the legislation because I did not think enough was being taken from those paid the largest pensions, given the emergency. There was legal advice saying that pension entitlements are preserved property rights so I had to be careful. Some retired people threatened legal action and I was concerned about putting the entire FEMPI legislation at risk but I was advised that people in receipt of pensions over €100,000 could be made subject to a 20% reduction on the portion above that figure.

Not many pensions fall into this category and my replies to constant questions on this matter over the past two years may be read on the record of the Oireachtas - I gave details of every individual pensioner.