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

On 16 June last year, I announced proposals to restore, on a phased basis, most of the Public Service Pension Reduction (PSPR) cuts which were applied to public service pensions under financial emergency legislation.  The PSPR applies at differentiated rates to the pensions of all retired public servants including members of An Garda Síochána.

These PSPR ameliorative proposals have since been legislated for under the Financial Emergency Measures in the Public Interest (FEMPI) 2015 Act, with changes occurring in three stages, on 1 January 2016, 1 January 2017 and 1 January 2018.

On 1 January 2016, increases in the annual pension thresholds before PSPR applies were activated. These exemption threshold increases remove PSPR entirely from a significant number of pensions with relatively lower values, while those pensions which continue to be impacted by PSPR receive a boost of €400 per year.

On 1 January 2017, additional PSPR amelioration, acting principally via further exemption threshold increases, will fully remove PSPR from another significant tranche of public service pensioners, while at the same time boosting those pensions which remain affected by PSPR by €500 per year.

On 1 January 2018, the third stage of PSPR amelioration will ensure that all PSPR-impacted pensions with values up to €34,132 will be fully restored, meaning that PSPR will no longer affect such pensions, while those pensions which continue to be impacted by PSPR will get a boost of, in most cases, €780 per year.

These PSPR changes under FEMPI 2015 deliver on my commitment to restore the pensions of retired public servants as early as economic and fiscal progress allowed, with an initial focus on those receiving relatively lower pensions. This pension restoration across the public service will cost an estimated €90 million on an annual basis and, when fully implemented, will ensure that only the top 20% higher value public service pensions will continue to be impacted by the PSPR.