Written answers

Wednesday, 6 July 2022

Department of Public Expenditure and Reform

Public Sector Pensions

Photo of Mark WardMark Ward (Dublin Mid West, Sinn Fein)
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50. To ask the Minister for Public Expenditure and Reform if he has plans to review current pension abatement arrangements for ex-Defence Forces personnel who on completion of service take up employment in another area of the public service; and if he will make a statement on the matter. [36570/22]

Photo of Mark WardMark Ward (Dublin Mid West, Sinn Fein)
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51. To ask the Minister for Public Expenditure and Reform the public service roles that are excluded from current pension abatement arrangements for public service staff who complete their employment in one area of the public sector and who on completion of service take up employment in another area of the public service; and if he will make a statement on the matter. [36571/22]

Photo of Mark WardMark Ward (Dublin Mid West, Sinn Fein)
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52. To ask the Minister for Public Expenditure and Reform if Members of the Houses of the Oireachtas are excluded from current pension abatement arrangements for public service staff who complete their employment in one area of the public sector and who on completion of service take up employment in another area of the public service; and if he will make a statement on the matter. [36572/22]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 50 to 52, inclusive, together.

As the Deputy may be aware, the principle of abatement of a public service pension is long-standing within the rules of various public service pension schemes. Pension abatement is an important aspect of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012 (the Single Scheme Act).

The Act provides for the abatement of a public service pension where a retired public servant, whose pension is in payment, is re-employed in the public service such that no more of the pension when combined with the remuneration in the new position shall exceed the pensionable remuneration of the old position. It should be noted that it is the pension which is abated and not the salary in the new position. The measure applies across the public service, including the Defence Forces.

Abatement policy remains a key component of Public Service pension policy and addresses valid concerns about simultaneous payment of both pension and salary in the Public service. While the high level operation of abatement is monitored on an ongoing basis, there are no current plans to review pension abatement policy as it applies to specific sectors of the public service.

There are no specific public service roles which are excluded from current pension abatement arrangements. However, Section 52(4) of the legislation provides for a waiver of abatement, in exceptional circumstances where the position requires a person with particular training and experience and that position cannot be filled other than by the employment of the pensioner. Applications for waivers of abatement are assessed on their own merits on a case by case basis and subject to approval by the Minister for Public Expenditure and Reform.

Following consideration of updated legal advice on the application of the wording of Section 52(1) of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012 in the context of members of the Oireachtas, it was determined that abatement could not be applied to persons elected to the Oireachtas. It should be noted that this advice had no implications for public servants appointed to other public service positions including former members of the Oireachtas who take up position elsewhere in the public service. Abatement continues to be correctly applied to former Pensionable Public Servants re-employed elsewhere in the public service.

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