Maureen O'Sullivan (Dublin Central, Independent)
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78. To ask the Minister for Public Expenditure and Reform in relation to the pension relation deduction attributed to public servants since March 2009 as an emergency financial measure, his plans in the future to cease deductions; and if he will make a statement on the matter. [39032/13]

Brendan Howlin (Wexford, Labour)
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The public service Pension-related Deduction (PRD), as levied on the wages and salaries of pensionable public servants under the Financial Emergency Measures in the Public Interest Act 2009, has been and remains a critical component of the public service pay and pension measures adopted as part of our national fiscal consolidation. Across all sectors of the public service, it is estimated that the deduction raises of the order of €1 billion per year.

On this basis, the key importance of the measure in restoring balance to the public finances means that I have no plans at present to cease PRD deductions but as with other FEMPI provisions this matter is reviewed annually.

I would however note that, as legislated for in the Financial Emergency Measures in the Public Interest Act 2013, and as provided for in the Haddington Road Agreement, the rate of PRD on the €15,000 to €20,000 band of pay received in a year will fall from 5% to 2.5% on 1 January 2014. This rate cut will be worth €125 annually in gross terms to most public servants, with those taxed at the standard rate enjoying the greater gain in terms of take-home pay boost.