Shane Ross (Dublin South, Independent)
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225. To ask the Minister for Public Expenditure and Reform if changes have been made since 2013 or are planned to be made to the pensions of Ministers, Ministers of State and Office Holders in the Houses of the Oireachtas and the pensions of Members of the Houses of the Oireachtas; if so, the changes or proposed changes and the potential cost to the Exchequer; and if he will make a statement on the matter. [3392/15]

Brendan Howlin (Wexford, Labour)
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As with Public Servants generally, the pensions of politicians, including Ministers and other Officeholders, have been subject to a range of measures implemented over recent years which have had, and will continue to have, significant downward effects on pensions and pension awards.

The Public Service Pensions (Single Scheme and Other Provisions) Act 2012 introduced a new Single Public Service Pension Scheme for new entrants, including new Oireachtas Members, from 1 January 2013. This scheme has a new minimum pension age of 66, raised from 65 as applies to new entrant Public Servants from 2004, and linked to future increases in the age for the Contributory State Pension. Benefits under the new scheme are substantially revised, with pensions for all new entrant Public Servants, including new entrant Oireachtas Members and Officeholders, to be based on career average earnings rather than the current final salary basis.

Successive Financial Emergency Measures in the Public Interest Acts have impacted on the pay and pensions of politicians. For example the pay reductions have substantially reduced the salaries on which pensions are calculated. A progressive Public Service Pension Reduction (PSPR) was introduced from January 2011 on the pensions of those who retired before March 2012, and a new higher PSPR rate of 20% was introduced from January 2012 for pensions over €100,000. Further PSPR reductions were introduced for pensions of €32,500 and above from July 2013 which impacts on those retiring before the end of the current 'grace period'.  This was deemed necessary and appropriate to ensure that higher-paid pensioners, including Oireachtas Members and Officeholders, would make a fair and proportionate additional contribution to the fiscal consolidation measures.

A further effective pension cut applies with effect from 1 September 2013 in the case of persons who receive two or more Public Service pensions which have a combined value in excess of €32,500. This further pension cut is based on applying the PSPR to the combined value of the multiple Public Service pensions held by such a person, rather than to each pension individually. This aggregation of pensions for PSPR purposes reduces the overall Public Service pension income of affected pensioners, including significant numbers of pensioners who receive both a TD pension and a Ministerial pension.

Other measures introduced in recent years which have impacted on the pensions of politicians include the exclusion for pension purposes of long service increments and the bar on serving Oireachtas or European Parliament Members from receiving Ministerial pensions.  In addition, although not a pension issue, severance payments for Ministers and other Officeholders were abolished under the Oireachtas (Ministerial and Parliamentary Offices) (Amendment) Act 2014 and no member of the current Government will receive such payments upon leaving Office.

There are no plans at present to further reduce Public Service pensions.  However, I would like to assure the Deputy that pay and pension costs will be kept under review as part of the Government's ongoing strategy to bring the public finances to a sustainable level.