Dessie Ellis (Dublin North West, Sinn Fein)
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Question 34: To ask the Minister for Public Expenditure and Reform his views that an annual public service pension in excess of €100,000 is appropriate. [35193/11]

Brendan Howlin (Wexford, Labour)
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There is a process of significant reform of public service pensions.

I have recently introduced the Public Service Pensions (Single Scheme) and Remuneration Bill 2011, currently before the House. It will provide for a new single pension scheme for all new entrants to the public service. This is an initiative 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.

The new single scheme will provide for the calculation of pensions on the basis of "career average" earnings - this is a change from the current position where pension is based on "final salary". This is considered a fairer and more equitable system and one which is progressive in application, i.e. it affects the pension paid to those who have high earnings especially in late career (e.g. a civil servant promoted to top management later in their career) more than the pension for those who may have a relatively 'flat' career progression (e.g. nurses, teachers).The new scheme will also link pension increases to CPI (and not pay as is currently the case).

The pension-related deduction (PRD) was legislated for in 2009, saving €1 billion a year on the public service pay-bill and, with effect from the start of this year, public service pensions themselves were reduced by 4% on average. by way of the Public Service Pension Reduction (PSPR). The PSPR is a progressively structured reduction applied to public service pensions. It consists of an exemption for the first €12,000 of annual pension along with a set of increasing rates of reduction applied to higher income bands as follows:

Also, with the conclusion of the pay cut 'grace period' next February, pensions coming into payment will be cut by some 7% on average. In addition, I have recently announced significant changes to the departure terms for new Secretaries General and other senior appointments made by TLAC. These initiatives are important and equitable measures by this Government that will assist in putting age related costs in this sector on a more sustainable long term basis.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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Question 35: To ask the Minister for Public Expenditure and Reform if he will provide an account of his ongoing engagement with private sector pension funds investors to explore public funding options; and the way in which he will step up efforts in this regard. [35189/11]

Brendan Howlin (Wexford, Labour)
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We are open to proposals from private sector investors to fund investment in Irish infrastructure on the right terms for the taxpayer. Accessing and directing other sources of private sector investment toward infrastructure could help to further boost Ireland's capital stock. There have been extensive discussions with a broad range of potential investors including Irish pension funds, international banks, investment and brokerage companies and representatives of private investment funds.

The Department of Public Expenditure and Reform continues to actively engage with the private sector in an effort to access potential new sources of finance to supplement our capital investment programme. Discussions this week with the representatives of institutional investment managers indicate that there is an interest in investing in Irish Infrastructure and I look forward to seeing how this might be realised. Officials also have ongoing engagement with the European Investment Bank (EIB) and will be meeting EIB officials this week to discuss how Ireland might benefit from proposals arising to help secure funding for infrastructure projects.