Dáil debates

Wednesday, 12 January 2011

2:30 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Question 69: To ask the Minister for Finance if he will set out the total 2011 contribution expected from the pension levy and from the recently introduced levy on public service pensions; if he will further set out the total contributions by public servants to their occupational pension schemes in 2011; and if he will make a statement on the matter. [1402/11]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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A preliminary estimate of receipts for 2011 from the pension-related deduction or pension levy introduced under the Financial Emergency Measures in the Public Interest Act is €1 billion. The estimated receipts from the pension reduction for 2011, which was introduced under the Financial Emergency Measures in the Public Interest Act 2010, is €100 million. As regards pension contributions from public servants, a preliminary estimate for 2011 is of the order of €700 million. More detailed estimates will become available in the context of the Revised Estimates volume, which is in preparation at present.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I thank the Minister for the reply. Does the Minister agree it is important that all information about public service pensions is put out there? There are some 13,000 public sector pension holders and 4,300 spouses of deceased public servants who receive pensions. The bulk of pensions are below €12,000 a year and only one public service pension is in excess of €150,000 a year. Perhaps the Minister can tell us who is the lucky retired public servant who receives €150,000 a year. What is the net cost of public service pensions? We are provided with figures on gross cost when most public servants contribute significantly to their pensions. I am delighted the Minister told us the pension levy now produces €1 billion per year. The extra pension contributions will raise an additional €800 million, with €100 million from retired pensioners in 2011 and €700 million in additional pension contributions. It would be useful to set out this and to set out who gets what. What is the average public service pension? Most people receive less than €12,000.

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I am delighted to set out this information in the public domain after the publication of the Revised Estimates volume. Revised legislation for public service pensions is among the items of legislation of essential budgetary importance that require enactment before the dissolution of the House. We will have a considerable opportunity in that context to discuss public service pensions. I will take into account the suggestion of the need to provide information on the numbers, the amount of their entitlement and related matters in the context of the presentation of that Bill.