Patrick O'Donovan (Limerick, Fine Gael)
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Question 129: To ask the Minister for Public Expenditure and Reform if in view of the decision of the electorate in the recent referendum on judicial pay, he has considered using similar methods in respect of the pension entitlements and severance packages of specific grades of public and or civil servants; and if he will make a statement on the matter. [1741/12]

Brendan Howlin (Wexford, Labour)
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The recent referendum was required because of the special position of the judiciary under the Constitution. The same considerations do not apply to public and civil servants. Accordingly, as the Deputy will be aware, there have been considerable changes to public service pensions over the past number of years without recourse to referenda.

In 2009 a Pension-Related Deduction (PRD) was introduced. Also, a pension reduction (the Public Service Pension Reduction) was implemented with effect from 1 January 2011 across all areas of the public service. This measure was most recently amended at end 2011 to impose a new top reduction rate of 20% on pension amounts above €100,000. It is also worth noting that the pay cut introduced in 2010 will impact on the pensions and lump sums of those retiring after the end of the 'grace period' i.e. from 1 March 2012 onwards.

The Deputy will also know that the process of modernising and restructuring the pensions system is ongoing, and in this context, I introduced a Bill in the House on 19 October 2011 – the Public Service Pensions (Single Scheme) and Remuneration Bill 2011 - to give effect to a new single pension scheme for new-entrant public servants which will reduce longer-term pension costs by around one-third. This new scheme will be based on a career average system with later pension age (phased increase to 68) and pension increases linked to CPI.