Richard Bruton (Dublin North Central, Fine Gael)
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Question 96: To ask the Minister for Finance the workers in the community and voluntary sector, that receive block grants from the State, that will be subject tot he public service wage reduction; and if persons who were exempt from the public service pension levy will also be exempt from this pay cut. [2841/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I refer the Deputy to my reply to Parliamentary Questions Nos. 48643/09 and 2047/10 which were taken together and answered on Tuesday 19 January 2010. The pay reductions provided for in the Financial Emergency Measures in the Public Interest (No. 2) Act 2009 apply to staff of bodies that receive grants from the State only where the body concerned is a public service body as defined in the Act. The Act includes among the definition of a public service body- "a body (other than a body specified or referred to in the Schedule) that is wholly or partly funded directly or indirectly out of money provided by the Oireachtas or from the Central Fund or the growing produce of that Fund and in respect of which a public service pension scheme exists or applies or may be made".

Róisín Shortall (Dublin North West, Labour)
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Question 97: To ask the Minister for Finance the circumstances under which a person who is not a public servant but whose employment is entirely funded by public funds may be subject to the pension levy; the rationale for this; and if he will make a statement on the matter. [2859/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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In summary, the pension-related deduction introduced by section 2 of the Financial Emergency Measures in the Public Interest Act 2009 applies to (i) public servants who are (ii) employed by or hold an office or position in a public service body and who (iii) are members of a public service pension scheme or are entitled to a benefit under such a scheme or receive a payment in lieu of membership in such a scheme.

Public Service bodies include the Civil Service, the Gardaí, the Permanent Defence Forces, local authorities, the Health Service Executive and vocational education committees. In addition any statutory body or company or body corporate (or subsidiary) established and financed wholly or partly by a Minister (whether by share issue or guaranteed loan or money provided) in respect of which a public service pension scheme exists or applies or may be made is a public service body for the purposes of the Act. Any body funded by the Oireachtas or by the Central Fund and in respect of which a public service pension scheme exists or applies or may be made also is defined as a public service body.

As the Deputy is aware, the Act was introduced in the context of the widely accepted need to give priority to the stabilisation of the public finances and to reflect the substantial benefits generally available to staff under public service pension terms.