Written answers

Wednesday, 12 June 2013

Department of Public Expenditure and Reform

Public Sector Pensions Expenditure

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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95. To ask the Minister for Public Expenditure and Reform the savings that will be achieved in 2013 and 2014 from public sector pensions in payment arising from the measures contained in the Financial Emergency Measures in the Public Interest (2013) Act; and if he will make a statement on the matter. [28148/13]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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With effect from 1 July 2013, the Financial Emergency Measures in the Public Interest Act 2013 will reduce public service pensions valued above €32,500 per annum, applying to all such pensions already payable on that date or awarded up to end-August 2014. The reductions will range from about 2% near the €32,500 threshold level (subject to no pension falling below €32,500), to 5% for the highest pensions. The Act secures the appropriate reductions by revising and adapting the existing “Public Service Pension Reduction” (PSPR) in such a way that:

- revised (higher) rates of PSPR will apply to those pensions above €32,500 which have been subject to PSPR before July 2013 - largely comprising pensions awarded up to end-February 2012, while

- new rates of PSPR will be introduced for those pensions above €32,500 not previously subject to PSPR - largely comprising pensions awarded after February 2012, and up to end-August 2014.

The savings arising from this pension reduction measure are estimated to be €12.9 million in 2013 and €24 million in 2014.

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