Pearse Doherty (Donegal South West, Sinn Fein)
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Question 22: To ask the Minister for Public Expenditure and Reform if he will consider, as an emergency measure, a legislative change to add two additional pension income bands and associated reduction rates of 20% above €80,000 and 41% above €100,000 to the public service pension reduction. [35179/11]

Brendan Howlin (Wexford, Labour)
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This Government has shown its determination to firmly address the serious long-term Exchequer affordability concerns which exist in relation to public service pensions.

The Government has started the reform process. I have recently announced significant changes to the departure terms for new Secretaries General and other senior appointments made by TLAC.

I also refer the Deputy to the Public Service Pensions (Single Scheme) and Remuneration Bill 2011, currently before the House which will provide for a new career average single pension scheme for all new entrants to the public service. This is a measure that will significantly reduce costs to the taxpayer while at the same time ensuring that public servants and their dependants continue to have a reasonable income in retirement.

As the Deputy will be aware, the pay reduction (and not the PSPR) will also reduce public service pensions coming into payment after the ending of the 'grace period' (29 February 2012).

The PSPR, effective from 1 January 2011, is applied by reference to a set of rates and income bands as follows:-

The savings associated with the PSPR are in the order of €100m in net public service pension expenditure of some € 2,700m in 2010. The reduction applies to about 130,000 former public servants and their survivors, including former Presidents, former Oireachtas members and retired members of the Judiciary. Also these pensioner payments are, of course, subject to income tax as well as the Universal Social Charge.

With regard to the Deputy's request that I consider raising the current PSPR rates and bands, I can advise the Deputy that all aspects of Exchequer spending are under review in the context of the forthcoming Comprehensive Review of Expenditure. The Government will be deciding spending adjustments in the public interest and in the light of the need to achieve the required budgetary targets.