Willie Penrose (Longford-Westmeath, Labour)
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69. To ask the Minister for Public Expenditure and Reform his plans in respect of outstanding pension restorations that resulted as a consequence of reduction in pensions during the economic crisis; when pension reductions in respect of public sector workers with pension of under €35,000, under €70,000 and above €70,000, respectively, will be restored in full; and if he will make a statement on the matter. [9970/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy is aware the unwinding of the emergency FEMPI legislation commenced with the Lansdowne Road Agreement 2016-2018 and will be mostly unwound under the Public Service Stability Agreement 2018 -2020.

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.

Application of PSPR in 2019

Effective 1 January 2019, the legislated PSPR liability position is as follows:

(i) Pensions awarded in respect of retirements up to end-February 2012:

Only those pensions in this category which have a pre-PSPR value in excess of €39,000 are liable to PSPR in 2019. PSPR is imposed on such pensions by reference to the following:

PSPR in 2019 (pre-March 2012 pensions)

Annualised amount of public service pension - Reduction

Up to €39,000 - Exempt

Any amount over €39,000 but not over €60,000 - 12%

Any amount over €60,000 but not over €100,000 - 17%

Any amount over €100,000 - 28%

(ii) Pensions awarded in respect of retirements from 1 March 2012 to 1 April 2019 (the expiry date of the FEMPI 2013 grace period):

Only those pensions in this category which have a pre-PSPR value in excess of €60,000 are liable to PSPR in 2019. PSPR is imposed on such pensions by reference to the following:

PSPR in 2019 (post-February 2012 pensions)

Annualised amount of public service pension - Reduction

Up to €60,000 - Exempt

Any amount over €60,000 but not over €100,000 - 3%

Any amount over €100,000 - 8%

Application of PSPR from 2020

Effective 1 January 2020, the legislated PSPR liability position is as follows:

(i) Pensions awarded in respect of retirements up to end-February 2012:

Only those pensions in this category which have a pre-PSPR value in excess of €54,000 are liable to PSPR from 1 January 2020. PSPR is imposed on such pensions by reference to the following:

PSPR from 2020 (pre-March 2012 pensions)

Annualised amount of public service pension - Reduction

Up to €54,000 - Exempt

Any amount over €54,000 but not over €60,000 - 12%

Any amount over €60,000 but not over €100,000 - 17%

Any amount over €100,000 - 28%

(ii) Pensions awarded in respect of retirements from 1 March 2012 to 1 April 2019 (the expiry date of the FEMPI 2013 grace period):

Only those pensions in this category which have a pre-PSPR value in excess of €60,000 are liable to PSPR from 1 January 2020. PSPR is imposed on such pensions by reference to the following:

PSPR from 2020 (post-February 2012 pensions)

Annualised amount of public service pension - Reduction

Up to €60,000 - Exempt

Any amount over €60,000 but not over €100,000 - 1%

Any amount over €100,000 - 6%

Ministerial order on PSPR to be issued by end-2020

When the PSPR amelioration provisions in the 2017 Act as described above are fully in place from 1 January 2020, only a small number of public service pensions and new pension awards will remain affected by PSPR. Section 27 of the 2017 Act states that the Minister for Public Expenditure and Reform will, no later than 31 December 2020, issue an order which will specify a date for the full removal of PSPR from that residual group of PSPR-affected pensions.

The date so specified in the order will effectively be the date of complete abolition of PSPR.