Patrick O'Donovan (Limerick, Fine Gael)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Public Expenditure and Reform the constitutional and legal changes required to make changes to the pension arrangements for retired politicians and civil/public servants; and if he will make a statement on the matter. [6238/13]

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

I am advised that as a pension is generally taken to be deferred income it is therefore covered by the constitutional protections that apply to property. I cannot comment on the legal or constitutional changes which might be required to alter this position.

For the information of the Deputy, a number of significant reforms have been introduced in recent years which have impacted on Public Service pension arrangements:

- Under the Public Service Superannuation (Miscellaneous Provisions) Act 2004, pensions are not payable to new entrant Public Servants (as defined in the Act) before 65 years of age. This includes new Oireachtas Members as defined in the Act.

- Under the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices Act 2009, Ministerial pensions are no longer payable to sitting Members of the Oireachtas following the last general election, or to Members of the European Parliament following the next elections to the Parliament.

- Public Service pensions for persons (including former Ministers and members of the Oireachtas) who retired after February 2012 are reduced in line with the substantial pay reductions applied across the Public Service under the Financial Emergency Measures in the Public Interest (FEMPI) Acts. For those who retired before the end of February the Public Service Pension Reduction (PSPR) applies. I recently provided for an increase in the rate of PSPR that applies to pensions over €100,000 to 20%.

- The Public Service Pensions (Single Scheme and Other Provisions) Act 2012, introduced a new Single Public Service Pension Scheme with a new minimum pension age of 66, rising in due course with the age at which the State Pension (Contributory) will become payable. This scheme will also apply to all new Members of the Oireachtas, including new entrant Ministers, as defined in the Act. The Act also provides pensions for all Public Servants who are subject to this Act to be based on career average earnings, as opposed to the current final salary basis.