Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

This question refers to the position on pensions and the status of the public service pension reduction, PSPR, which was introduced on 1 January 2011 under the terms set out in the Financial Emergency Measures in the Public Interest Act 2011. The PSPR reduces the value of those public service pensions which have pre-PSPR values above specified thresholds. It does so in a progressively structured way which has a proportionately greater effect on higher value pensions.

A very significant part-unwinding of the PSPR in three stages is taking place under the Financial Emergency Measures in the Public Interest Act 2015, with PSPR-affected pensioners getting pension increases via substantial reversal of the PSPR cuts on 1 January 2016, 1 January 2017 and 1 January 2018. On 1 January 2016 all pensions up to at least €18,700 became exempt from the PSPR. From 1 January 2017 all pensions up to at least €26,000 have been exempt from the PSPR. From 1 January 2018 all pensions up to at least €34,132 per year will be exempt from the PSPR. Those pensioners not fully removed from the reach of the PSPR by dint of these changes will, in the majority of cases, benefit by €1,680 per year from 2018. The cost of these changes is estimated at about €90 million on a full-year basis from 2018.

The Government published the Public Service Pay and Pensions Bill 2017. If the legislation is enacted, it will put in place further changes in 2019 and 2020, with the objective being that, by the beginning of 2020, anyone with a pension value of at least €54,000 will be entirely free of the PSPR. That will include the vast majority of pensioners.

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