Written answers

Monday, 9 September 2024

Department of Public Expenditure and Reform

Departmental Circulars

Photo of Claire KerraneClaire Kerrane (Roscommon-Galway, Sinn Fein)
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402.To ask the Minister for Public Expenditure and Reform if he has raised concerns over the proposal to apply his Department's Circular 24/2022 retrospectively to December 2022 for healthcare professionals (details supplied); and if he will make a statement on the matter.[34026/24]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy may be aware, the principle of abatement of a public service pension is longstanding within the rules of various public service pension schemes and pension abatement is an important aspect of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012 (the “2012 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.

Prior to the 2012 Act, pension abatement applied only where an individual was re-employed in the same sector. The 2012 Act extended abatement such that an individual in receipt of a public service pension is subject to abatement where they are re-employed in any part of the public service. This is the key difference between the Pension Abatement Act, 1965 and the 2012 Act. The measure applies across the public service. In December 2022, this Department issued a circular which provided guidance on the application of abatement in accordance with the 2012 legislation.

Abatement policy remains a key component of Public Service pension policy, with operational responsibility for the implementation of this policy across different sectors within the public service residing within the relevant pension paying authority in the first instance.

I am aware that an issue has been raised by the Psychiatric Nurses’ Association in relation to the methodology used for applying abatement across the Health Service and the issue is currently under active consideration by my officials.

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