Written answers

Tuesday, 10 February 2009

Department of Finance

Pension Provisions

9:00 pm

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Question 190: To ask the Minister for Finance the estimated expenditure on public service pensions for 2009; and if he will make a statement on the matter. [4252/09]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Question 228: To ask the Minister for Finance if the pension levy will be in addition to existing pension contributions from public servants; and if he will make a statement on the matter. [4487/09]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Question 229: To ask the Minister for Finance the means by which the pension levy will be collected; if it will apply to basic income, or total income earned in the public service; and if he will make a statement on the matter. [4488/09]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Question 230: To ask the Minister for Finance the expected income to the Exchequer from the 3% pension levy rate, the 5% rate, the 6.4% rate, the 7.2% rate, the 7.7% rate, the 8.1% rate, the 8.5% rate, the 8.8% rate, the 9.2% rate, the 9.4% rate and the 9.6% rate. [4489/09]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Question 231: To ask the Minister for Finance the number of public servants who will be levied at the proposed 3% pension levy rate, the 5% rate, the 6.4% rate, the 7.2% rate, the 7.7% rate, the 8.1% rate, the 8.5% rate, the 8.8% rate, the 9.2% rate, the 9.4% rate, and the 9.6% rate. [4490/09]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Question 232: To ask the Minister for Finance if public servants with less than two years' service within the public service will be subject to the pension levy; and if he will make a statement on the matter. [4491/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 190 and 228 to 232, inclusive, together.

The projected expenditure on public service pensions for 2009 is estimated at €2.7 billion. This figure covers superannuation payments in respect of all public service pension schemes and covers main scheme pensions, spouses pensions and retirement lump sums. As with all estimates of future pension payments there is a significant element of approximation about the figure. Various demographic and socioeconomic factors will affect the final outcome.

Public servants will be subject to the pension related deduction announced on Tuesday 3 February 2009, including those with less than two years service. It is an additional deduction and existing pension contributions made by public servants will continue unchanged. The deduction will apply to all pay including allowances and overtime. Sums paid in respect of travel and subsistence allowances will not be subject to the deduction. The deduction will be made from the individual public servant's remuneration as a periodic payroll deduction.

The pension deduction element of the payroll saving will be €1.35 billion in a full-year and €1.12 billion in 2009. Public servants will be subject to the deduction at the following rates.

RemunerationRate of deduction
The first €15,0003%
The next €5,0006%
The remainder10%

The rates the Deputy refers to were part of the illustrative table showing the effect of the deduction as a percentage of overall income at different income levels. These rates are not to be confused with the actual rates of deduction which will apply as stated.

Photo of James ReillyJames Reilly (Dublin North, Fine Gael)
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Question 191: To ask the Minister for Finance if he will confirm that a sum in excess of €100 million, which it was promised, as part of the deal in the sale of Government shares in Aer Lingus, would be put into the Aer Lingus pensioners' fund, has in fact been passed into the Aer Lingus pensioners' scheme as undertaken at the time of the sale of these shares; and if he will make a statement on the matter. [4275/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I understand that in 2007 Aer Lingus made a payment of €104 million for pension fund purposes from the proceeds of the Initial Public Offering. Details of this transaction are reported in the company's published annual accounts for 2007.

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