Terence Flanagan (Dublin North East, Independent)
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386. To ask the Minister for Public Expenditure and Reform the position regarding the restoration of public service pay (details supplied); and if he will make a statement on the matter. [21983/15]

Brendan Howlin (Wexford, Labour)
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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 further meetings have been held between the Association and my officials regarding issues raised in a detailed presentation and submission made by the Alliance in recent weeks.

Following the issue of the Labour Relations Commission on the proposed Lansdowne Road Agreement I indicated it is my intention to begin the orderly restoration of public sector pension reductions made in recent years. In line with my stated commitments I will be bringing detailed proposals to Government shortly for approval providing for a reduction in the impact of the PSPR on public service pensions.

Michael McGrath (Cork South Central, Fianna Fail)
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387. To ask the Minister for Public Expenditure and Reform if certain Public Servants earning just above the €65,000 threshold for pay reductions under the Haddington Road agreement, who were recruited after 1995, are potentially worse off than colleagues on an equivalent grade, recruited before 1995, as for the same net salary they have a higher gross pay and a higher pay related social insurance liability, and are therefore subject to the cuts imposed under Haddington Road, whereas their pre-1995 colleagues may not have taken an equivalent reduction; if this anomaly will be addressed in the Lansdowne Road agreement; and if he will make a statement on the matter. [21994/15]

Brendan Howlin (Wexford, Labour)
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As a reform measure, with effect from 6 April 1995, Regulations were introduced by the then Minister for Social Welfare which provided that modified social insurance status no longer applied to civil or public servants appointed on or after 6 April 1995.  Staff subsequently appointed to established positions in the civil service were liable to make Class A PRSI contributions and were also covered by revised conditions of service which took account of their entitlement to the full range of social insurance benefits.  Employer benefits under such arrangements take into account that the benefits available to post 1995 recruits are "coordinated" with the full range of social insurance benefits available to those employees.

The major reform of superannuation arrangements in the established civil service for persons hired on or after 6 April 1995 included provision for an employee contribution in respect of personal superannuation benefits for those employees covered by Class A insurance, where no such employee contribution was previously applicable.  As a result, revised salary scales were introduced, equivalent to 20/19ths of the corresponding salary scales applicable to established members of the relevant grade at 5 April 1995. 

In relation to the threshold of €65,000 referred to by the Deputy, this refers to the application of the pay reductions to persons earning more than €65,000 under the Financial Emergency Measures in the Public Interest Act 2013. It is accepted practice, when considering changes to the remuneration of public servants in the context of inclusive negotiations on pay and conditions, to have regard to gross salary scales at all levels for the purpose of calculating increases or decreases to base rates.  The consideration of salary scale levels in this way has also applied to the discussions which have taken place in relation to the Public Service Stability Agreements. There is no anomaly as such.  The difference in pay reflects the now long-standing employee contribution towards pension benefits, allied with the revised and improved social welfare benefits available to that class of public servant and I have no intention of making any changes to these arrangements.

In addition, it should be noted that the 2013 legislation provides that the legislated pay reductions should in no case serve to bring the then existing annualised pay rate of a public servant from marginally above €65,000 per annum (up to €68,783) to below €65,000. In such cases the reduction is restricted to reducing the scale to €65,000 only.