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

123. To ask the Minister for Public Expenditure and Reform his views of retired Taoisigh and Government Ministers in receipt of State pensions with second incomes from public sources; if he has plans to reduce these pensions and pensions to other former politicians; and if he will make a statement on the matter. [24553/13]

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

The position in relation to the pensions of former Taoisigh and former Ministers, along with that of public service pensioners generally is kept under review by my Department. In this context I should point out that, over the course of recent years, several Government measures have been taken which serve, directly or indirectly, to substantially reduce pension awards and pensions in payment to higher-paid retirees from the public service, including former Taoisigh and former Ministers.

A key measure in this context has been the Public Service Pension Reduction (PSPR), which applies to all public servants who retired up to the end of February 2012, including retirees in the groups referred to in the Deputy's question. This progressively structured imposition on pensions was introduced in January 2011, based on a set of income bands and percentage reductions bearing most heavily on higher-pensioned retirees. Acting on foot of my concern in relation to high public service pensions, I subsequently acted to make the PSPR even more progressive in application, by legislating for an increase in the rate of PSPR on pension amounts in excess of €100,000, from 12% to 20% on the excess amount, effective from January 2012.

In the case of former public servants who retire or have retired from February 2012 onward, pensions have also been subject to a significant effective reduction, insofar as they have been impacted by the pay reductions applied under the Financial Emergency Measures in the Public Interest (FEMPI) legislation. These reductions have again been progressively structured, so that higher paid public servants and public service retirees, including in the groups referred to by the Deputy, have proportionately been harder hit. In this context some of the deepest pay cuts of all have been imposed on ministerial pay, and these pay cuts will be fully reflected in the pension awards to current and future Ministers.

In addition to these measures already taken, and as I have already announced, the Government this week, in the context of the resumed Croke Park discussions, approved the text and publication of legislation to give effect to the pay reduction for public servants earning over €65,000, along with a parallel reduction in higher-value public service pensions and other contingent measures to enable the Government achieve its savings requirements in the event of non-ratification of collective agreements. Specifically in respect of pensions, the relevant legislation, to be published tomorrow, will implement a further cut on higher-value public service pensions, including those of former Ministers and Taoisigh.

I should also say that Part 4 of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012 amended the Financial Emergency Measures in the Public Interest Act 2010 to provide that public service pensioners with more than one public service pension (for example a retired Minister with a ministerial pension and a TD’s pension) will have those pensions aggregated for purposes of the Public Service Pension Reduction; a commencement order to give effect to this aggregation provision is expected to be signed in the near future. The 2012 Act also provides for the abatement of pension where a public service pensioner is re-employed in the public service.

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

124. To ask the Minister for Public Expenditure and Reform if he will provide details of the planned cuts to public service pensions in excess of €32,500 per annum; if there will be a pro rata reduction of the pensions paid to surviving spouses; if the pension reductions will be also refunded in a number of years time under the proposed new pay agreement; and if he will make a statement on the matter. [24559/13]

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

Following the decision last month by the Public Services Committee of the Irish Congress of Trade Unions to reject the Labour Relations Commission proposals for a Public Service Agreement 2013–2016, the Commission, at the request of Government, made contact with the parties to establish whether a basis could be found for a negotiated public service agreement to meet budgetary targets.

Considerable progress has been reported at the resultant talks conducted under the auspices of the Labour Relations Commission. In this context, the Government earlier this week approved the text and publication of legislation to give effect to specific public service pay and pension savings measures. These measures include a pay reduction for public servants earning over €65,000, a parallel reduction in public service pensions and other contingent measures to enable the Government achieve its savings requirements.

Pending publication of the relevant Bill tomorrow, it would not be appropriate for me at this stage to set out detailed specifics in respect of individual constituent measures which may be adopted.