Written answers

Wednesday, 20 May 2009

Photo of Billy TimminsBilly Timmins (Wicklow, Fine Gael)
Link to this: Individually | In context

Question 137: To ask the Minister for Finance the position in relation to a matter (details supplied); and if he will make a statement on the matter. [20357/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

The Deputy has not supplied sufficient detail to allow me to respond. I can point out that the public servants to whom section 2 of the Financial Emergency Measures in the Public Interest Act 2009 applies are liable for the pension related deduction. Payment of the deduction does not confer any additional pension benefits.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context

Question 138: To ask the Minister for Finance the reason the staff of Waterways Ireland are subject to the pension levy in view of the fact that their salaries are paid through Northern Ireland; and if he will make a statement on the matter. [20380/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

Public servants who are members of public service pension schemes are liable to pay the pension-related deduction legislated for in the Financial Emergency Measures in the Public Interest Act 2009.

The applicability of the new deduction to the North-South Implementation Bodies (including Waterways Ireland) arises from section 1 of the Act, by way of the definition of 'public service body', which includes, at paragraph (i) 'a body...that is wholly or partly funded out of money provided by the Oireachtas or from the Central Fund...and in respect of which a public service pension scheme exists or applies or may be made'.

Those employees of North-South Bodies in receipt of 'remuneration' as defined in Section 1 of the Act i.e. 'emoluments to which Chapter 4 of Part 42 of the Taxes Consolidation Act 1997 applies' are subject to the deduction. Therefore, all Irish-taxed employees of the North-South Bodies are subject to the deduction whether they enjoy 'core terms' or 'reserved rights terms' under the North-South pension scheme or have other employer-supported pension arrangements or payment in lieu thereof.

I might add that, as the Deputy may be aware, in order to ameliorate the impact of the deduction on lower paid public servants (with a partial offset by an increase on earnings above €60,000) I announced, in the Supplementary Budget of 7 April 2009, a change to the structure of the deduction which will exempt the first €15,000 of earnings.

Comments

No comments

Log in or join to post a public comment.