Terence Flanagan (Dublin North East, Independent)
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268. To ask the Minister for Public Expenditure and Reform his plans to lift the pension levy in the near future; and if he will make a statement on the matter. [1234/14]

Brendan Howlin (Wexford, Labour)
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It is assumed that the Deputy's question relates to 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, as amended.

The PRD 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, and based on the current PRD rates structure, it is estimated that the deduction raises in the region of €950 million 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 fell from 5% to 2.5% on 1 January 2014. This rate cut is 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.