Nicky McFadden (Longford-Westmeath, Fine Gael)
Link to this: Individually | In context

Question 99: To ask the Minister for Finance if he will clarify the position regarding the payment of local authority pensions from the Paymaster General's Office (details supplied); and if he will make a statement on the matter. [1043/12]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

As part of the move to the greater use of shared services in the public sector in order to drive efficiencies, the Paymaster General's Office, which is part of my Department, is taking over the payment, on an agency basis, of pensions of the retired staff of the Vocation Education Committees. Payment of these pensions was previously made through the local authorities. The Paymaster General's Office pays all pensions fortnightly on relevant Thursdays for the previous two weeks in arrears. The local authorities also pay pensions fortnightly, but their period of payment is for the two calendar weeks and, therefore, would contain an element of advance at the point of payment. In transferring to the Paymaster General's system, this element of advance payment was eliminated in the first fortnightly payment of pension. Thereafter pensions are paid for two weeks in arrears. No pensioner loses out as a result. Deductions, made by the Paymaster General's Office, from occupational pension payments, include Public Service Pension Reduction (PSPR), Universal Social Contribution (USC) and Tax (PAYE).

As regards the matter of allowances, the Vocational Education Committee pensioners were transferred to the Paymaster General's system based on data supplied by the local authorities. The case mentioned by the Deputy has been investigated with the relevant local authority, and the pension payment rate in use by the Paymaster General's Office matches the rate previously payable by the Local Authority.