Written answers

Wednesday, 4 May 2022

Department of Public Expenditure and Reform

State Pensions

Photo of James LawlessJames Lawless (Kildare North, Fianna Fail)
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153. To ask the Minister for Public Expenditure and Reform if he will examine a series of issues in relation to the post-1995 State pensions (details supplied); and if he will make a statement on the matter. [21805/22]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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As the Deputy will appreciate detailed matters in relation to Garda pensions are in the first instance the responsibility of the Minister for Justice. However, in broad terms, I can outline the policy reforms introduced in 1995 for public service pensions and how this affects pension entitlements.

In 1995, the Government decided that full social welfare cover should be extended to all newly appointed civil and public servants and that they should pay the full Class A social insurance contribution. 

The aim of integration with the social insurance system is to prevent “double pensioning” where both an occupational public service pension and the State Pension Contributory (SCP) would be payable. Where a public servant is fully insured, their occupational pension is integrated with the State Pension i.e. account is taken of any social welfare benefits payable as part of an individual's overall public service pension entitlement.

Where an individual's public service pension is integrated, they may have an entitlement to a bridging payment (known as the occupational supplementary pension) which is required to ensure an individual’s overall public service pension entitlement because there can be a shortfall in this benefit in certain circumstances e.g. because an individual has not reached State Pension age.

An occupational supplementary pension ensures that the occupational pension of a public servant paying Class A PRSI, when combined with any social insurance benefits, is equal to the occupational pension of a public servant who pays modified PRSI (Class B, C or D) and whose pension is not integrated with the State Pension.

However, the payment of a supplementary pension is not automatic and is subject to meeting certain criteria e.g. the individual must have reached minimum pension age in accordance with the rules of his/her scheme and must not be in paid employment.

In addition, it is usually an important requirement that individuals engage with the Department of Social Protection (DSP) to ensure that they are receiving any and all social insurance benefits to which they may have an entitlement. The conditions around the payment of these benefits and the accrual of Social Welfare credits is a matter, in the first instance, for that Department.  

It should be noted that there is no requirement for an individual to apply for any means-tested social welfare payments in order to qualify for a supplementary pension.  

On the matter of claiming occupational supplementary pensions while living abroad, my understanding is that non-residency does not generally preclude payment of the supplementary pension subject to adherence to the relevant DSP requirements. Similarly, there is no restriction preventing an individual participating in a course of education (e.g. a third level course).

It is important to note that the conditions for the payment of supplementary pensions are similar across the wider public service, including, for example, the education and health sectors.

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