Written answers

Tuesday, 19 May 2015

Department of Public Expenditure and Reform

Public Sector Pensions Levy

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
Link to this: Individually | In context | Oireachtas source

160. To ask the Minister for Public Expenditure and Reform if, in the course of the current pay review, he will ensure the pensions of retired public servants, which were reduced under the Financial Emergency Measures in the Public Interest Act in respect of such persons' pensions in excess of €12,000 per annum by between 8% and 28%, will have same restored as quickly as possible; and if he will make a statement on the matter. [19772/15]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

A number of measures have been introduced in recent years which impact on public service pensions in payment.  The Public Service Pension Reduction (PSPR), commencing 1 January 2011, imposed reductions on annual public service pensions in payment in excess of €12,000, using a progressively tiered set of bands and rates with a top rate of 12% on any public service pension amount over €60,000. The legislation was amended from 1 January 2012 to increase the top rate of PSPR from 12% to 20% on the portion of any public service pension amount in excess of €100,000.

The Financial Emergency Measures in the Public Interest Act 2013 which provided for pay reductions for public servants receiving annualised remuneration of €65,000 under the Haddington Road Agreement, also provided for additional Public Service Pension Reduction rates ranging from 2% to 8% to be applied to all annual public service pensions in payment in excess of €32,500 from 1 July 2013.  Full-year savings from these pension measures is currently in excess of €125 million.

In relation to the impact of PSPR on the income of public service pensioners I met with representatives of retired public service pensioners in May 2013 and indicated at that time that it was my intention as a matter of priority to move towards reducing the burden of public service pension reductions, with the initial focus on the people in receipt of low pensions, at the earliest date economic progress permits. I also met with the representatives of the Alliance of Retired Public Servants in March last and my officials are currently considering a presentation and submission made by the Alliance to my officials on 7 May last.

In addition to the formal talks process currently underway with the public service unions and associations, I will continue to engage appropriately with the representatives of public service pensioners in relation to matters relevant to them.

Comments

No comments

Log in or join to post a public comment.