Written answers

Wednesday, 12 January 2011

Department of Finance

Pension Provisions

2:30 pm

Photo of Joe BehanJoe Behan (Wicklow, Independent)
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Question 322: To ask the Minister for Finance if he will consider a matter in respect of a person (details supplied); and if he will make a statement on the matter. [1785/11]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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The individual case raised by the Deputy which refers to the reduction in pension is a matter for consideration by the Minister for Transport, as employer, in the first instance. The Government decided, in the context of the serious national budgetary position, that retired public service pensioners should make a contribution to the overall required fiscal adjustment. This decision was taken having regard to the gap between the burden being borne by those currently in public service employment (where the pension related deduction (PRD) and pay reduction have impacted) and their retired counterparts.

The measure concerned is legislated for in the Financial Emergency Measures in the Public Interest Act 2010, which was signed into law by the President on 22 December 2010. Section 2 of that Act provides that the public service pension of a pensioner (as defined) will be reduced, subject to the first €12,000 of annual pension income being exempt. Section 2(2) specifically provides inter alia that the reduction has effect notwithstanding any provision by or under any circular or instrument or other document, or any written agreement or contractual arrangement.

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