Charlie McConalogue (Donegal, Fianna Fail)
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117. To ask the Minister for Public Expenditure and Reform the position regarding the restoration of pension payments for public sector workers who had their pensions cut as part of the public sector pay reductions; when pensioners who were in receipt of payments of more than €32,500 will see their pensions increased; and if he will make a statement on the matter. [3627/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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Public service pay reductions under the financial emergency (FEMPI) legislation have not altered the value of public service pensions in payment. The particular FEMPI measure which has affected the payment rate of public service pensions is the Public Service Pension Reduction (PSPR). 

Introduced in January 2011 under the FEMPI 2010 Act, PSPR reduces the pay-out value of pensions whose pre-PSPR value is above specified thresholds. It does so in a progressively structured way which has a proportionately greater effect on higher value pensions. At all times, public service pensions up to a value of €12,000 have been unaffected by PSPR, while a higher exemption threshold of €32,500 has applied to pensions awarded from 1 March 2012 onwards.

PSPR is being significantly reversed or restored in three stages under FEMPI 2015 over the 2016 to 2018 period, with PSPR-affected pensioners getting pension increases via substantial restoration of the PSPR cuts on 1 January 2016, 1 January 2017 and 1 January 2018.  When fully rolled-out from 1 January 2018, the changes will mean that all public service pensions with pre-PSPR values of up to €34,132 will be fully exempt from PSPR, while those pensioners not fully removed from the reach of PSPR will, in the majority of cases, benefit by €1,680 per year. The cost of these changes is estimated at about €90 million on a full-year basis from 2018.

Since all public service pensions with pre-PSPR value greater than €32,500 have been negatively affected by PSPR, it follows that all such pensions will be increased by this three-stage restoration under FEMPI 2015.