Maureen O'Sullivan (Dublin Central, Independent)
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31. To ask the Minister for Public Expenditure and Reform his plans to fully restore public service pensions for persons over the threshold of €34,132 (details supplied); if his attention has been drawn to the frustration of persons that face further reductions from 1 January 2018 in view of the fact that the economic outlook is improving; and if he will make a statement on the matter. [26210/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy is aware, the particular measure affecting public service pensions under the financial emergency legislation is the Public Service Pension Reduction (PSPR), which was introduced on 1 January 2011 under the Financial Emergency Measures in the Public Interest Act 2010.

PSPR reduces the value of those public service pensions which have pre-PSPR values above specified thresholds. It does so in a progressively structured way which has a proportionately greater effect on higher value pensions.

A very significant part-unwinding of PSPR in three stages is taking place under the Financial Emergency Measures in the Public Interest Act 2015, 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.

This three-stage part-unwinding of PSPR is delivering significant pensions increases to PSPR-affected pensioners.  On 1 January 2016 all pensions of up to at least €18,700 became exempt from PSPR; from 1 January 2017, all pensions of up to at least €26,000 are now exempt from PSPR, and from 1 January 2018 all pensions of up to at least €34,132 per year will be exempt from PSPR. Those pensioners not fully removed from the reach of PSPR by dint of these changes will, in the majority of cases, benefit by €1,680 per year from 2018. The cost of these changes is estimated at about €90 million on a full-year basis from 2018.

Under section 12 of the Financial Emergency Measures in the Public Interest Act 2013, I as Minister for Public Expenditure and Reform am required to review the necessity of the FEMPI legislation annually and cause a written report my findings to be laid before each House of the Oireachtas. The next report is due by end June 2017 and in the context of that report, I shall review the scope of the existing financial emergency measures and the possible further scale-back of those measures, including the PSPR.