Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy may be aware, I have overall policy responsibility in relation to public service occupational pension schemes payable to retired public servants.

Since 6 April 1995, all newly-appointed public servants became fully insured under the Social Insurance System.  They pay Class A PRSI, which would entitle them to Social Insurance Benefits such as, maternity benefit, illness benefit, State Pension Contributory (SPC) and other social insurance entitlements not available to public servants paying modified PRSI (Class B, C or D).  A significant number of occupational pension schemes (both private and public sector) take account of a member’s entitlement to the SPC when calculating occupational pension benefits. This is known as ‘integration’, and is also sometimes referred to as 'coordination'. It is worth noting that if a public servant is paying modified PRSI and there is a least a one day gap in their service, they will then transition to Class A PRSI due to Social Welfare regulations. This rule does not fall under the remit of this Department.

 A public servant paying Class A PRSI will receive both an occupational pension and, it is assumed, they will be also be entitled to the maximum rate of the SPC.  As the SPC element is paid for by way of PRSI contributions, this part of the pension is bound by the rules and criteria as set by Department of Social Protection (DSP).  However, in the case of public servants, an occupational supplementary pension may be payable in circumstances where the total pension package (i.e. the combined total of the public service occupational pension plus any social insurance benefits) is less than that of the pension payable to a public servant on an equivalent salary and whose pension is not integrated with the Social Insurance system and who do not have an entitlement to the SPC.

 The payment of an occupational supplementary pension is subject to an individual meeting certain criteria, such as the retired public servant shall not be in paid employment and:

 (i)   fails to qualify for Social Insurance Benefit or

 (ii)  qualifies for Social Insurance Benefit at a reduced rate and

 (iii)  has reached minimum pension age or is in receipt of an ill-health pension

 The following Social Insurance payments are considered when assessing an individual for an Occupational Supplementary Pension:  The State Pension Contributory (SPC), the State Pension Transition (also known as a Retirement Pension and now abolished since January 2014), Illness Benefit, Invalidity Benefit, Benefit Payment for 65 Year Olds and Jobseeker’s Benefit.  Other benefits/allowances not listed above are not taken into account when assessing an individual’s entitlement to an Occupational Supplementary Pension e.g. Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension, Jobseeker’s Allowance and any other means-tested benefit/allowance.

 Please be aware that the rules pertaining to the payment of a supplementary pension are the same across the wider public service and apply equally to all public servants with Class A PRSI, including nurses and all frontline staff.

Additionally, if an individual in receipt of a supplementary pension takes up employment, for example, for one day, the supplementary pension would cease for that one day and be payable for the other 4 working days in the week, similar to how an entitlement to Jobseeker’s Benefit is treated. However, please note that if any retired public service, irrespective of PRSI status, returns to public service employment they are subject to the rules of abatement as provided for in Section 52 (1) to (5) of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012.  Please note abatement is also applied on a periodic and pro-rata basis.  Abatement applies to the occupational pension only and is not applied to any Social Insurance Benefits payable.