Denis Naughten (Roscommon-South Leitrim, Independent)
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312. To ask the Minister for Public Expenditure and Reform if he will meet with the Alliance of Retired Public Servants, in advance of the completion of his annual review of the Financial Emergency Measures in the Public Interest Acts 2009 to 2013; if consideration will be given to the imposition of the public service pension reduction on pensions, in view of the improvement in the Exchequer balance; if he has discussed the application of the universal social charge with the Minister for Finance; and if he will make a statement on the matter. [12117/15]

Brendan Howlin (Wexford, Labour)
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I have welcomed the formation of the Alliance of Retired Public Servants (ARPS) and have met with representatives of that body on a number of occasions. I am aware of the concerns raised regarding the imposition of the Public Service Pension Reduction (PSPR) and the application of the Universal Social Charge (USC) to pensions. I have indicated to ARPS that it is my intention, as a matter of priority, to move towards reducing the burden of PSPR, with the initial focus on retired public servants in receipt of low pensions, at the earliest date economic progress permits. My most recent meeting with ARPS representatives took place on 4 March 2015 and I expect that officials of my Department will continue to engage with ARPS representatives over the coming months.

As the Deputy states, there is a requirement to review the Financial Emergency Measures in the Public Interest (FEMPI) Acts 2009-2013 annually and to consider whether the various measures, including the PSPR, continue to be necessary, having regard to the purposes of the legislation. The next review will be carried out by me on or before the 30 June next.

I have previously indicated that consideration must be given as to how, over the medium term, public service 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. The continued application of the PSPR to public service pensioners will form part of my considerations in this regard. Any proposals to amend the FEMPI Acts, including any changes to the PSPR, will require primary legislation to be brought before the Oireachtas.

The impacts of USC was considered collectively by Government in the context of Budget 2015 whereby  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%. These changes provided a modest amelioration of the impact of USC on public service pensioners also.