Written answers

Friday, 7 September 2018

Department of Public Expenditure and Reform

Public Sector Pensions Levy

Photo of Mattie McGrathMattie McGrath (Tipperary, Independent)
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195. To ask the Minister for Public Expenditure and Reform the reason public servants are paying slightly more in pension levy than in pension contributions; if this can be reversed; the amount collected from this levy since 2011; the way in which the revenue has been spent; and if he will make a statement on the matter. [35526/18]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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The Pension-Related Deduction (PRD) is provided for in law under the Financial Emergency Measures in the Public Interest Act 2009 (as amended). PRD is a deduction from the salary of Public Servants who

1. are members of a Public Service pension scheme,

2. have an entitlement to a Public Service pension benefit, preserved or in payment, or

3. who receive/have received a payment-in-lieu of such a pension. 

PRD confers no additional pension benefit and is not linked to the pension contribution an individual is required to make. The PRD thresholds, as provided for in law, are currently set for the year 2018 as follows:

- First €28,750 of remuneration – 0%

- Next €31,250 of remuneration – 10%

- Balance of remuneration – 10.5%

PRD collected forms part of voted appropriations-in-aid, offsetting the gross expenditure of individual Departments.  

There are no plans to amend the thresholds provided for under PRD legislation. It should be noted that PRD will be replaced by the Additional Superannuation Contribution (ASC) with effect from 1 January 2019.

The PRD yield for the years from 2011 to date is detailed as follows:

YearPRD Yield 
2011€960,224,000
2012€934,739,000
2013€925,986,000
2014€877,800,000
2015€875,985,000
2016€705,998,000
2017€732,064,000
2018€744,966,000
Note 1:  The years 2011 to 2016 do not include Local Government PRD yield.

Note 2:  The years 2017 and 2018 are estimated yields.

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