Thursday, 8 November 2012
Department of Public Expenditure and Reform
Public Sector Pensions
To ask the Minister for Public Expenditure and Reform the saving to the Exchequer if the following bands were applied to the public service pension reduction at all public sector pensions, up to €12,000 exempt; 6% applied to €12,001 to €24,000; 9% applied to €24,001 to €60,000; 20% applied to €60,001 to €80,000; 50% applied to €80,001 to €100,000 and €100,001 upwards 100%. [49212/12]
As the Deputy may be aware, only around 1% of public service pensioners are in receipt of a pension in excess of €60,000 and only a few hundred have a pension in excess of €100,000. The average public service pension is estimated at around €25,000 and many of these pensioners do not have any entitlement to the social welfare pension. I would add that there would be legal issues arising from a proposal to introduce a 100% reduction for pensions above a certain level. The changes in rates and bands proposed by the Deputy would save approximately €10 million in a full year. This figure would be reduced by the application of taxation.