David Cullinane (Waterford, Sinn Fein)
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406. To ask the Minister for Public Expenditure and Reform his views on whether it is fair and equitable that retained fire fighters pay pension-related deductions under the same model as other public sector workers, despite the fact the pension benefits they accrue through serving in the fire service are significantly lower than their counterparts. [37494/16]

Paschal Donohoe (Dublin Central, Fine Gael)
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The public service Pension-Related Deduction (PRD) is provided for under the Financial Emergency Measures in the Public Interest Act 2009. PRD applies to the pay, including any non-pensionable pay elements, of pensionable public servants. Specifically, section 2(1)(b) of the Act provides that any public servant who is a member of a public service pension scheme or who is entitled to benefit under such a scheme or receives a payment in lieu of membership of such a scheme is subject to PRD. PRD is applied equally across all public servants liable to the deduction irrespective of the individual pension terms that apply to those public servants.

I understand from my colleague the Minister for Housing, Planning, Community and Local Government that retained firefighters have historically qualified on retirement for a one-off, non-recurring gratuity calculated at one eighth of their annual retainer payment multiplied by the number of years of actual service, up to a maximum of four times the annual retainer. To qualify for the gratuity, a retained firefighter must have a minimum of two years' service. The maximum gratuity payable is four times the annual retainer and retained firefighters do not pay any contribution to that gratuity.

Retained firefighters in place in 2008 and those hired thereafter until the end of 2012 were given the option of joining the Local Government Superannuation Scheme and receiving a pension and retirement lump sum based on their pensionable remuneration and length of service. All retained firefighters appointed after 1 January 2013 must join the Single Public Service Pension Scheme.

The payment of the one-off gratuity at retirement to those retained firefighters who are not members of the Local Government Superannuation Scheme or the Single Public Service Pension Scheme constitutes a payment in lieu of pension scheme membership of the pension scheme and, as such, gives rise in principle to PRD exposure.

A gratuity arrangement of this kind, by way of payment in lieu of pension, is not unique to retained firefighters. It should also be noted that a significant amelioration of PRD is provided for under the Financial Emergency Measures in the Public Interest Act 2015. This amelioration means that, from 1 January 2016, all persons with annual public service earnings of up to €26,083 are exempt from PRD, and from 1 January 2017, this exemption threshold will rise to €28,750.

David Cullinane (Waterford, Sinn Fein)
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407. To ask the Minister for Public Expenditure and Reform the reason the 2009 legislation does not provide for the application of a separate set of thresholds for individual employments but rather one set of thresholds for the totality of the public service remuneration in a given year; and if he will make a statement on the matter. [37497/16]

Paschal Donohoe (Dublin Central, Fine Gael)
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It is assumed that the Deputy is referring to the public service Pension-Related Deduction (PRD), which applies to the pay of pensionable public servants under the terms of the Financial Emergency Measures in the Public Interest Act 2009.

The exemption thresholds and rate bands for PRD have always applied to the total public service pay of affected public servants, not to the pay associated with individual posts. A minority of pensionable public servants may be employed in two public service posts simultaneously, for example holders of two part-time jobs in teaching or in the health sector. In any such case, it is fair and reasonable that the combined pay from both employments is subjected to PRD on a basis which gives a monetary outcome equal to what would arise if the person received the same pay from just a single post.

It should also be noted that all PRD-impacted public servant persons are benefitting from a significant PRD amelioration provided for under the Financial Emergency Measures in the Public Interest Act 2015. This amelioration means that, from 1 January 2016, all persons with annual public service earnings of up to €26,083 are exempt from PRD, and from 1 January 2017 this exemption threshold will rise to €28,750.