Thursday, 18 January 2018
Department of Public Expenditure and Reform
Public Sector Pay
16. To ask the Minister for Public Expenditure and Reform the pension and public pay restoration to be carried out under FEMPI, by Department and public body, in tabular form; and if he will make a statement on the matter. [2235/18]
As the Deputy is aware the unwinding of the emergency FEMPI legislation commenced with the Lansdowne Road Agreement 2016-2018 and will be completed under the Public Service Stability Agreement 2018 -2020.
The actual pay increases to be carried out are set out in both agreements and the underpinning legislation.
The Deputy will recall being a member of the Government that signed the Lansdowne Road Agreement and passed the FEMPI 2015 Act which gave effect to the agreement. More recently the Deputy engaged with the Public Service Pay and Pensions Bill as it made its way through the Oireachtas.
For ease of reference I will now outline the principal pay movements to be carried out by all Departments and public bodies under those two agreements:
- 1st January annualised salaries up to €24,000 are increased by 2.5%.
- 1st January annualised salaries from €24,001 up to €31,000 are increased by 1%.
- 1 January 2016 exemption threshold for payment of Pension Related Deduction (PRD) increased from €15,000 per annum to €24,750 per annum
- 1 September 2016 the exemption threshold increased further to €28,750.
- 1st September (brought forward to April) annualised salaries up to €65,000 are increased by €1,000.
- 1st January annualised salaries to increase by 1%;
- 1st October annualised salaries to increase by 1%.
- 1st January annualised salaries up to €30,000 to increase by 1%;
- 1st September annualised salaries to increase by 1.75%.
- Pension Related Deduction converted to Additional Superannuation Contribution - threshold raises to €32,000 (except for fast accrual groups) and rates drop to 6.66% and 7% for single scheme members.
- 1st January annualised salaries up to €32,000 to increase by 0.5%;
- 1st October annualised salaries to increase by 2%.
- Additional Superannuation Contribution - threshold raises to €34,500 (except for fast accrual groups) and rates drop to 3.33%% and 3.5% for single scheme members.
A very significant part-unwinding of Public Service Pension Reduction (PSPR) in three stages is taking place under FEMPI 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.
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 Public Service Pay and Pensions Act 2017, provides for further significant lessening of the impact of PSPR by way of threshold and rate changes to apply on 1 January 2019 and 1 January 2020.
When fully in place from the beginning of 2020, these changes will mean that the vast majority of public service retirees, comprising everyone with occupational pension values up to at least €54,000, will be entirely free of PSPR. For those who retired since end-February 2012 that threshold will be even higher, at €60,000.