John Lahart (Dublin South West, Fianna Fail)
Link to this: Individually | In context

354. To ask the Minister for Public Expenditure and Reform whether he is considering any proposals to address the pension anomalies of senior Garda officers; and if he will make a statement on the matter. [25227/25]

Jack Chambers (Dublin West, Fianna Fail)
Link to this: Individually | In context

Pension terms for members of An Garda Síochána hired prior to 1 January 2013 are governed by An Garda Síochána Superannuation Scheme. Those hired after 1 January 2013 are members of the Single Public Service Pension Scheme, which was established by the Public Service Pensions (Single Scheme and Other Provisions) Act 2012. Under both schemes, members of An Garda Síochána have “fast accrual” terms, meaning that they accrue pension benefits at a faster rate than standard accrual members as they have earlier normal retirement ages. They can access their pension benefits at this earlier age.

Having sought clarification from the Deputy, the "anomaly" referenced in the question appears to be in relation to the Standard Fund Threshold (SFT) and the question will be answered based on this.

The SFT is a ceiling on the total capital value of tax-relieved pension benefits that an individual can draw upon in his or her lifetime from all of that individual’s pension arrangements. In accordance with Revenue rules, if an individual’s overall pension fund at retirement exceeds the Standard Fund Threshold (SFT), the fund is liable to a chargeable excess tax. The SFT is currently €2 million and amount exceeding STF is liable to chargeable excess tax at 40%.

SFT applies to all pension funds, whether the fund emanates from a private pension fund or a public service pension scheme. In the context of Defined Benefit (DB) pension schemes which provide for a pension lump sum and annual pension (similar to DB schemes which pertain in the majority of public service pension schemes), the “pension fund” is calculated by reference to the combined pension lump sum and the lifetime value of the annual pension payable.

In the public service (including An Garda Síochána) the SFT liability is assessed and remitted upfront by the employer to the Revenue Commissioners. The SFT liability is then recouped on a periodic basis over a maximum of 20 years from the date the annual pension first becomes payable with the recoupment attracting tax relief at the marginal rate.

The Minister for Finance has overall responsibility for SFT policy.

The Minister for Justice is responsible for the terms of employment of members of An Garda Síochána, which includes membership of the appropriate pension scheme. My department has not received any requests or proposals regarding pension terms for senior Garda officers from the Department of Justice.