Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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20. To ask the Minister for Public Expenditure and Reform if he will report on talks and-or negotiations with the public sector unions regarding the abolition of the pension levy and how this relates to the commitment in the Croke Park agreement to use savings to the Exchequer from this agreement to restore pay to those earning under €35,000 per year; and if he will make a statement on the matter. [5747/15]

Brendan Howlin (Wexford, Labour)
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With regard to revising the public service pension related deduction, it is a progressively structured reduction to the pay of pensionable public servants ensuring that those on higher remuneration rates are impacted more adversely than those on lower pay. Given the amounts raised every year, it is therefore a critical component of the public service pay and pension measures adopted as part of our national fiscal consolidation.  

However, it should be noted that a start has already been made on reducing the impact of PRD on public servants. 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 fell from 5% to 2.5% on 1 January 2014. This 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. 

As the Deputy is aware, the powers granted by the Oireachtas under the Financial Emergency Measures in the Public Interest (FEMPI) Acts in relation to public service pay and pensions are subject to annual review. The Haddington Road Agreement also reaffirms the commitment made previously in the Croke Park agreement to give priority to public servants with pay rates at €35,000 or less in any review of the pay measures.  Section 2.3 of the HRA confirms that when economic circumstances allow, and the public finances are restored to a sustainable position, the pay measures applied to public servants under the HRA and the FEMPI legislation will be reviewed.  

I would envisage that the question of further amendments to the PRD will be raised by the unions and associations representing public servants in the context of the discussions which are likely to take place later this year with a view to ensuring a fair and equitable review of pay measures imposed under the FEMPI Acts.