Wednesday, 4 July 2012

Questions (25)

Mary Lou McDonald


24 Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform the way the public service pension reduction is treated if a former officeholder or public servant is in receipt of more than one pension payment from the Exchequer. [32368/12]

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Written answers (Question to Minister for Expenditure)

The Public Service Pension Reduction (PSPR), which was introduced with effect from 1 January 2011, currently applies separately to each individual public service pension which was in payment or awarded up to and including 29 February 2012. The PSPR is a progressive scaled reduction; the pension income bands and rates of reduction are as follows:

First €12,000:0%

Between €12,000 and €24,000:6%

Between €24,000 and €60,000:9%

Between €60,000 and €100,000:12%

Above €100,000:20%

I consider that where a person is in receipt of two or more such public service pensions, whether in the case of former office holders, other former public servants or other recipients of public service pensions, then those pensions should be aggregated for the purposes of applying the PSPR.

Last week at the Dáil Committee Stage debate on the Public Service Pensions (Single Scheme and Other Provisions) Bill 2011, I tabled amendments to that Bill which will have the effect of introducing such aggregation of pensions for PSPR purposes. These amendments were accepted on Committee Stage.

If and when that Bill becomes law and aggregation of pensions for PSPR purposes is thereby legislated for, my Department will ensure that an administrative system to facilitate aggregation is put in place. In this connection I envisage that public service pension scheme administrators will be requested to forward relevant details, including Personal Public Service Numbers and correlated pension payment amounts, of all active pension cases up to the end of February 2012.

Public servants who retire on pension after February 2012 are not affected by the PSPR; instead their pension is effectively reduced by reference to the public service pay cut of1 January 2010.