The Pensions (Abatement) Act 1965 provides the legislative basis for the suspension or reduction of an allowance-pension where, after retirement, a scheme pensioner is employed in an agency or organisation in which the superannuation scheme paying the pension applies. Remuneration plus pension for the specified period should not exceed the uprated remuneration for the post from which the pensioner retired.
My Department issued a circular, No. 21/2005, in October 2005 with new arrangements applying to the abatement of public health sector pensions. In effect, pensioners working in agencies or organisations covered by the scheme from which their pensions are paid can earn up to 50% of the uprated remuneration of the former post, before abatement applies.