Brendan Howlin (Wexford, Labour)
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Question 140: To ask the Minister for Finance if he will confirm that the public service pension levy will not apply to an institute of technology employee who has a contract of indefinite duration but is not a member of a public service pension scheme; and if he will make a statement on the matter. [6521/09]

Finian McGrath (Dublin North Central, Independent)
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Question 153: To ask the Minister for Finance if he will support the case of a person (details supplied) in Dublin 17. [6621/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 140 and 153 together.

Deputy McGrath has provided details of an individual but he will appreciate that I cannot comment on any particular case. However, with regard to public service employees working in a body where there is or may be a pension scheme, if the employees are not entitled to be members of that scheme, for whatever reason, then it is intended that those employees will not be subject to the deduction.

The pension related deduction will be deducted from gross pay by employers before income tax, PRSI and health levies are calculated. Thus, pension contributions will be effectively relieved of tax at the marginal rate. The net reduction of income for the vast majority of public servants will be less than the gross calculated on the basis of the 3 deduction rates and the relevant income bands. An individual's pension contribution or their net income will be subject to many variables, including marital status, dependent children, statutory deductions, etc.

The approach to the pension related deduction is that it applies generally given the fact that all public servants enjoy the benefits of a public service pension which provides for greater security and more favourable terms than the generality of private sector pensions. The graduated approach to the payment is to ameliorate somewhat the impact on lower paid public servants.