Derek Nolan (Galway West, Labour)
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Question 298: To ask the Minister for Public Expenditure and Reform the effective tax rate, including levies and deductions, on that portion of public pensions which exceeds €100,000; the number of persons that are affected by this tax rate; and if he will make a statement on the matter. [20193/12]

Brendan Howlin (Wexford, Labour)
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I have statutory responsibility for administering Civil Service pensions which includes the Prison Service, and pensions paid from the Central Fund, namely judicial and ministerial pensions. In relation to these groups there are 114 individuals currently in receipt of a pension in excess of €100,000.

I do not have this information in relation to Health, Education, the Defence Forces, the Garda Síochána and Local Government.

A single individual with a public service pension in excess of €100,000 is subject to a 20 per cent PSPR charge on each euro in excess of €100,000. This PSPR charge is deductible for Income Tax and USC purposes. Therefore, the balance is subject to a 41 per cent tax rate and 7 per cent USC rate (4 per cent if the individual is aged 70 years or over or in receipt of a full medical card). It should be noted that for the purpose of this reply, the effective tax rate takes account of the following deductions and taxes: Public Service Pension Reduction (PSPR), Income Tax and the Universal Social Charge (USC).