Batt O'Keeffe (Cork North West, Fianna Fail)
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Under section 2 of the Financial Emergency Measures in the Public Interest Act 2009 a person is liable to pay the pensions-related deduction if he or she is a public servant on or after 1 March 2009 and 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 of such a scheme. Therefore, even if a person is not a member of a public service pension scheme, he or she is subject to the deduction if he or she is a member of another public service pension scheme, is entitled to a benefit under such a scheme (eg has a preserved benefit, is in receipt of a pension from another public service pension scheme or if he or she is entitled to a non-pensionable gratuity) or receives a payment in lieu of membership.

The person to whom you refer may be entitled to a non-pensionable gratuity. This is a gratuity payable to certain staff of VECs and institutes of technology who have given service with a VEC or institute of technology and whose service is not reckonable for superannuation purposes under the pension schemes of those bodies. The non-pensionable gratuity is paid in the form of a lump sum and is calculated at the rate of one week's pay for each year of service up to 15 years plus two weeks' pay for each year of service over 15 weeks, subject to a maximum 78 weeks. Payment of the gratuity is made under the terms of the Local Government (Superannuation) (Gratuities) Regulations 1984 and 1995 which were made under the Local Government (Superannuation) Act 1980.

The Financial Emergency Measures in the Public Interest Act 2009 defines a "public service pension scheme" as an occupational pension scheme or pension arrangement, by whatever name called, for any part of the public service provided for under any enactment or administrative measure for the like purpose and effect as the Superannuation Acts. The non-pensionable gratuity regulations provide a form of pension arrangement, apply to certain parts of the public service (including VECs and institutes of technology) and have their basis in the Local Government (Superannuation) Act 1980. A person with the required level of service is entitled to a non-pensionable gratuity under such an arrangement and therefore falls within section 2(1)(b)(ii) of the Act. They are, therefore, subject to the deduction.

It should be noted, however, that under section 6 of the Act, if a person does not accrue a superannuation benefit in respect of this service at the time of his or her ceasing to be a public servant, the deduction is refundable to him or her.