Written answers

Thursday, 21 July 2011

Department of Justice, Equality and Defence

Tax Code

7:00 pm

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein)
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Question 279: To ask the Minister for Public Expenditure and Reform the reason public sector pension levies are deducted from the salaries of a range of workers who will not benefit form a public sector pension, including part-time tutors with the vocational education committees and those working in State sponsored agencies; if these workers will be reimbursed the deducted money on reaching pensionable age; and if he will make a statement on the matter. [22082/11]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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The position is that public servants are in general liable to pay the pension-related deduction introduced in the Financial Emergency Measures in the Public Interest Act 2009. The criteria for being subject to the pension-related deduction are, essentially, that one is a public servant (defined in section 1 of the Act) and

a) is a member of a public service pension scheme (defined in section 1 of the Act) or

b) is entitled to a benefit under such a scheme or

c) receives a payment in lieu of membership in such a scheme.

A public servant not covered by the above criteria would not be subject to the deduction. The determination of liability in the case of an individual is a matter for the individual's employer in the first instance as it depends on the specific employment circumstances. In this regard, the question of whether the legislation and the deduction apply to staff in Vocational Educational Committees or State sponsored bodies is a matter for their employer and any clarification queries are a matter for the parent Department.

Fixed-term and non-permanent workers across many areas of the public service are paying the deduction. In this general connection, such service is generally pensionable and, even for relatively short periods in such posts, pensionable service is accrued. It may also be transferred in the future to any public service employment. If the service is not transferred, section 6 of the Act provides for a refund of the deduction in certain limited circumstances, essentially in those cases where, on leaving employment, the pension scheme member has not accrued sufficient service to build up a benefit in any public service pension scheme.

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