Written answers
Tuesday, 7 April 2009
Department of Finance
Pension Provisions
11:00 pm
Brian O'Shea (Waterford, Labour)
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Question 36: To ask the Minister for Finance his proposals to exempt from the pension levy persons who have paid 40 years constant contribution to their pension scheme but because they are not yet 65 years are required to make pension contributions; and if he will make a statement on the matter. [14090/09]
Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The pension related deduction has been introduced as one of a range of measures required to help address the economic crisis, including the serious imbalance in the Exchequer finances. The deduction applies generally given the fact that 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 deduction is a reasonable means of reconciling the need to achieve the necessary savings while seeking to ameliorate the impact on lower paid staff.
On the point raised by the Deputy I would point out that public servants who have paid 40 years contributions continue to enjoy the considerable benefits which are reflected in the pension and lump sum payable on retirement. In the circumstances I am satisfied that it is fair and appropriate that such public servants pay the pension related deduction.
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