Michael Ring (Mayo, Fine Gael)
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Question 155: To ask the Minister for Finance the reason a person would have to pay a pension levy in view of the fact that the person is pension age and continues to work a small number of hours. [16754/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am fully aware of people's concerns following the introduction of the pension-related deduction. However, the key objective is the realisation of the savings needed from the public service pay bill, given the severe economic and budgetary circumstances we face.

The approach to the pension related deduction is that it 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. It is not limited to those below pension age or to those in full time work. The criteria for making the deduction is set out in section 2(1)(b) of the Act. The pension related deduction is a reasonable means of reconciling the need to achieve the necessary savings while the recent Supplementary Budget changes have ameliorated the impact on lower paid staff.