Written answers

Thursday, 20 January 2011

Department of Finance

Public Service Pensions

5:00 am

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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Question 80: To ask the Minister for Finance the position regarding the reductions in pensions for retired civil servants as announced in the budget; if it only refers to civil servants; if it applies to commercial semi-State bodies; if it refers to and includes FÁS; the reason for same; the way deductions can be made in a contributory pension scheme; the way deductions can be made where added years were purchased by the retired person; and if he will make a statement on the matter. [3058/11]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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1The public service pension reduction was legislated for in December 2010 in the Financial Emergency Measures in the Public Interest Act 2010. It came into operation on 1 January 2011. The reduction is not confined to the pensions of retired civil servants. It applies to all public service pensions above €12,000 payable to persons retired from all parts of the public service including the civil service, local government, the Defence Forces, An Garda Síochána, non-commercial State Bodies and the health and education sectors.

The reduction does not apply to the pensions of persons retired from commercial State Bodies. Such bodies are not part of the public service and their staff do not enjoy membership of public service pension schemes. The reduction applies to the public service pensions of retired FÁS workers. As a non-commercial State Body FÁS is part of the public service.

The reduction applies in a standard manner to public service pensions, whether those pensions are contributory or non-contributory, and whether or not the pensions have been boosted by purchase of added years. The amount of reduction in each case is determined by application of the following set of annual income bands and associated reduction rates:

First €12,000 0%

Between €12,000 and €24,000 6%

Between €24,000 and €60,000 9%

Above €60,000 12%

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