Seanad debates
Thursday, 30 May 2013
Financial Emergency Measures in the Public Interest Bill 2013: Committee and Remaining Stages
11:30 am
Brendan Howlin (Wexford, Labour) | Oireachtas source
Obviously, that is a much wider issue than what is involved in this instance. The Senator will be aware that we have a new overarching pensions provision that I brought into force, having brought it through both Houses of the Oireachtas, one year ago. It came into force on 1 January last and comprised new pension provisions generally.
The pension-related deduction is not a pension contribution. I made this clear when I met the trade unions during the negotiations. They had raised the issue of the pension-related deduction or levy, as we call it normally. They made the case that when added to their regular pension contribution, the result was that they would never get the benefit of it. I made it clear that the pension-related deduction was part of the financial emergency measures in the public interest, FEMPI, architecture and that it would lapse. It is not a permanent feature and, therefore, cannot be regarded as a permanent contribution to pensions. What I am doing is signalling the beginning of a little payback to workers in the public sector of a modest €125 a year. The burden of annual reporting outlined in the amendment is not warranted and would be unduly prescriptive.
I understand the general point the Senator is making. The Comptroller and Auditor General is undertaking an analysis of total pension liabilities because the most recent analysis is somewhat dated and we want to get a clear picture. We have changed the entire architecture with the new Public Service Pensions (Single Scheme and Other Provisions) Act which came into force on 1 January last.
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