John McGuinness (Carlow-Kilkenny, Fianna Fail)
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224. To ask the Minister for Public Expenditure and Reform if the deductions made from the pensions of retired teachers arising from the financial crash 2008 will be restored. [56139/22]

Michael McGrath (Cork South Central, Fianna Fail)
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I presume the Deputy is referring to the Public Service Pension Reduction (PSPR) which was introduced on 1 January 2011 under the Financial Emergency Measures in the Public Interest (FEMPI) Act 2010, as part of the Government’s programme of financial emergency measures to address the serious position of public finances. It was significantly extended via the FEMPI Act 2013.

PSPR was applied in a progressive manner, operating by way of percentage reduction to pensions above specified exemption thresholds, with larger reductions imposed on relatively higher value pensions. This measure secured c. €135 million per annum in savings at its peak when it applied to approximately 90,000 pensions.

PSPR was significantly reduced in each of the years 2016 – 2020, by way of changes to the exemption thresholds and percentage reductions applicable. As of 1 January 2020, an estimated 97% plus of public service pensions were free from PSPR, leaving a residual group of approximately 4,000 of the highest value pensions still impacted from that date.

PSPR was removed from those pensions still impacted by it from 1 July 2021, in accordance with the Public Service Pay and Pensions Act 2017 (Section 27(3)) Order 2020.