Róisín Shortall (Dublin North West, Labour)
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Question 76: To ask the Minister for Finance the position in relation to the application of the public service pension levy to temporary or fixed term contract workers in the public service; if he has sought advice from the Attorney General as to the legality of applying the pension levy to such public servants; and if he will make a statement on the matter. [8154/09]

Róisín Shortall (Dublin North West, Labour)
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Question 77: To ask the Minister for Finance the position in relation to the application of the public service pension levy to the income of public servants which is not in itself pensionable, such as overtime; if he has sought advice from the Attorney General as to the legality of applying the pension levy to such income; and if he will make a statement on the matter. [8155/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 76 and 77 together.

With regard to temporary or fixed-term workers, the public service pension related deduction applies to any person who is a public servant on 1 March 2009 or is appointed to the public service after that date and who is a member of a public service pension scheme, is entitled to a benefit under such a scheme or receives a payment in lieu of membership in such a scheme. The deduction applies to all remuneration, whether pensionable or otherwise. It would not be appropriate for me to discuss the content of legal advice received in the course of development of policy and preparation of draft legislation. I am happy that the legislation provides a fair and reasonable approach, given the difficult circumstances currently.

Róisín Shortall (Dublin North West, Labour)
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Question 78: To ask the Minister for Finance the position in relation to the application of the public service pension levy to workers who have an income so low that they will never benefit from these contributions; if he has sought advice from the Attorney General as to the legality of applying the pension levy to such public servants; and if he will make a statement on the matter. [8156/09]

Róisín Shortall (Dublin North West, Labour)
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Question 79: To ask the Minister for Finance the position in relation to the application of the public service pension levy to workers whose length of employment is so short that they can never benefit from making compulsory contributions; if he has sought advice from the Attorney General as to the legality of applying the pension levy to such public servants; and if he will make a statement on the matter. [8157/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 78 and 79 together.

The public service pension related deduction applies to any person who is a public servant on 1 March 2009 or is appointed to the public service after that date, is a member of a public service pension scheme, is entitled to a benefit under such a scheme or receives a payment in lieu of membership in such a scheme. The definition of a "public service pension scheme" is set out in section 1 of the Financial Emergency Measures in the Public Interest Bill 2009.

Officers appointed prior to 6 April 1995 do not pay explicit employee contributions in respect of their main scheme benefits. Those who only pay the 1.5% contribution to the spouses and children's scheme, receive approximately 5% less in their salary and their pension benefits are adjusted accordingly. It is reasonable in the circumstances that the new pension related deduction be applied to all public servants who enjoy the benefits of a public service pension — in terms of the enhanced terms and the greater security than the generality of private sector pensions. The graduated approach to the payment was introduced to ameliorate somewhat the impact on the lower paid public servants.

The draft Financial Emergency Measures in the Public Interest Bill 2009 provides that no additional benefit is conferred by the pension related deduction. It also provides for deductions to be repaid to those who leave the public service with no preserved pension benefit, i.e. with fewer than two years' service. It would not be appropriate for me to discuss the content of legal advice received in the course of development of policy and preparation of draft legislation. I am happy that the legislation provides a fair and reasonable approach, given the difficult circumstances currently.

Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 80: To ask the Minister for Finance if persons in receipt of a medical card are exempt from the pension levy; and if he will make a statement on the matter. [8162/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The approach to this 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 question of whether a person is in receipt of a medical card is not relevant. The graduated approach to the payment is to ameliorate somewhat the impact on lower paid public servants.

One must take the totality of the public service pension arrangements into account, including retirement lump sum and security when compared to the private sector. In addition, the Government have sought to mitigate the effects on less well paid public servants through the tapering of the percentage reduction, to the greatest extent possible commensurate with the requirement to achieve savings of almost €1.35bn from the pension deduction. The rate of deduction is 3% of remuneration on the first €15,000, 6% on the next €5,000 and 10% on the balance.