Enda Kenny (Mayo, Fine Gael)

The pension levy was introduced on the remuneration of all public servants which will realise over €1 billion in savings this year. A tiered reduction in all public service pensions above €12,000 was also introduced which has cut pensions on average by 4% while retirement lump sums of over €200,000 will be taxed. The grace period which allows people to retire on their pre-cuts salary will end on 29 February 2012. Those retiring after then will see a pension reduction of 7% on average as their final pensions will be calculated on a reduced pay level.

The Minister's statement later this afternoon will be in respect of the superior pensions, as one might call them. There are approximately 250 people in receipt of pensions over €100,000 which is the focus of some considerable attention. There are also other areas where huge amounts are paid every day. The Government will look across the range of these payments. The Minister for Public Expenditure and Reform will deal with the large amounts paid in pensions to a specific number of people in the House later.

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