Finian McGrath (Dublin North Central, Independent)
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75. To ask the Minister for Public Expenditure and Reform if he will support the retired public servants on a matter (details supplied); and if he will make a statement on the matter. [47497/14]

Brendan Howlin (Wexford, Labour)
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I am aware of the concerns which have been raised  by the Alliance of Retired Public Servants regarding the ongoing imposition of the Public Service Pension Reduction (PSPR) on the pensions of many retired public servants and have met with representatives of the Alliance.

As the Deputy will be aware, I am required to review the Financial Emergency Measures in the Public Interest Acts 2009-2013 annually and cause a written report of my findings to be laid before each House of the Oireachtas.  As part of that review I consider whether the various measures, including the PSPR, continue to be necessary, having regard to the purposes of the legislation. In my most recent report laid before the Houses of the Oireachtas in June 2014 I concluded that the continuation of the PSPR remained necessary. However, as the fiscal crisis recedes and the country moves, thankfully, into a more normal economic environment,  it is important that I as Minister for Public Expenditure and Reform give consideration as to how, over the medium term, pay and pensions policy currently underpinned by the Financial Emergency Measures Legislation, needs to develop in the public service while ensuring that overall fiscal targets will be met. When my consideration is more advanced, I will of course bring proposals to Government in the first instance.  Any proposals to amend the FEMPI Acts, including any changes to the Public Service Pension Reduction will require primary legislation to be brought before the Oireachtas.

The Alliance has also raised concerns in relation to the Universal Social Charge (USC). As the Deputy will be aware, issues in relation to the USC and its application to income streams, including pensions, are the responsibility of the Minister of Finance. I would however note that in the recent Budget, the USC exemption limit was raised to just over €12,000, while the 2% rate was reduced to 1.5% and the 4% rate reduced to 3.5%.