Written answers
Tuesday, 28 June 2016
Department of Public Expenditure and Reform
Public Sector Pensions Expenditure
David Cullinane (Waterford, Sinn Fein)
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332. To ask the Minister for Public Expenditure and Reform the cost of combining the public service pension reduction amendments for 2017 and 2018 into a one year adjustment for retired public service pensioners, by gross pension income band (details supplied), by the number of cases in each band, in tabular form. [18041/16]
Paschal Donohoe (Dublin Central, Fine Gael)
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As provided for under the Financial Emergency Measures in the Public Interest (FEMPI) Act 2015, a significant phased amelioration of the cuts to public service pensions imposed by the Public Service Pension Reduction (PSPR) is now under way.
On 1 January 2016, the first phase of this amelioration took place by way of increases in the exemption thresholds for PSPR application. These exemption threshold increases fully removed PSPR from a significant number of pensions with relatively lower values, while those pensions which continue to be impacted by PSPR received a boost of €400 per year.
On 1 January 2017, the second phase of 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 phase 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.
This phased pension restoration across the public service under FEMPI 2015 will cost an estimated €90 million on an annual basis when fully implemented from 2018 with the pension restoration occurring on 1 January 2017 costing an estimated €30 million annually, while the pension restoration occurring on 1 January 2018 will cost a further estimated €30 million annually.
Details of the PSPR impositions and FEMPI 2015 amelioration impacts on individual pensions by reference to pension income bandsin each of the years 2016, 2017 and 2018 are contained in tabular format in my reply to PQ 17210/16 on 21 June 2016 while available data in relation to numbers of pensioners by pension income band is set out in the reply to PQ 40628/15 of 17 November 2015.
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