Written answers
Wednesday, 18 February 2015
Department of Public Expenditure and Reform
Pension Provisions
Seán Fleming (Laois-Offaly, Fianna Fail)
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61. To ask the Minister for Public Expenditure and Reform the number of public servants currently enrolled in the single public service pension scheme; and if he will make a statement on the matter. [7303/15]
Brendan Howlin (Wexford, Labour)
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The most recent estimated figures available to me, from April 2014, indicate that the total membership of the Single Public Service Pension Scheme at that time, was just over 22,000.
Michael Fitzmaurice (Roscommon-South Leitrim, Independent)
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62. To ask the Minister for Public Expenditure and Reform in view of the Government's claims that the Irish economy has turned the corner and is in recovery, if he will amend the temporary Financial Emergency Measures in the Public Interest Acts to reduce the impact of the pension related deduction on the pensions of retired public servants, specifically those on modest pensions; and if he will make a statement on the matter. [7341/15]
Brendan Howlin (Wexford, Labour)
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It is understood that the measure to which the Deputy's question refers is the Public Service Pension Reduction (PSPR), which came into effect on 1 January 2011 by way of the Financial Emergency Measures in the Public Interest Act 2010, and which has since been amended via the Financial Emergency Measures in the Public Interest (Amendment) Act 2011 and the Financial Emergency Measures in the Public Interest Act 2013.
PSPR reduces the value of qualifying public service pensions. It is a progressively structured imposition, and as such takes account of the position of persons in receipt of modest-sized pensions. Specifically, the progressive structure of PSPR is evident in the fact that all pensions below €12,000 are exempt from PSPR, while pensions below €32,500 are exempt from a PSPR increase/extension legislated for in 2013 via the Financial Emergency Measures in the Public Interest Act 2013. In addition, for those pensions which are affected by PSPR, the reduction is proportionately greater for higher-value pensions than for lower-value pensions. The following table illustrates the impact of PSPR on a sample of public service pensions awarded on or before 29 February 2012.
| Pension before PSPR (€) | Annual Reduction (€) | Annual Reduction (%) |
|---|---|---|
| 12,000 | 0 | 0 |
| 20,000 | 480 | 2.4 |
| 30,000 | 1,260 | 4.2 |
| 40,000 | 2,880 | 7.2 |
| 60,000 | 5,280 | 8.8 |
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 economic and fiscal conditions move towards a more sustainable position, I believe it will be necessary to prepare for an orderly wind-down of the financial emergency legislation. In this context, and as I have previously indicated, it would be my intention, as a matter of priority and at the earliest date economic progress permits, to move towards reducing the burden of public service pension reductions, with the initial focus on the people in receipt of low pensions.
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