Dáil Éireann Debate, Tuesday - 12 February 2013
321. Deputy Terence Flanagan asked the Minister for Public Expenditure and Reform the plans he has to reduce the levels of pensions paid to former and current politicians and Ministers; and if he will make a statement on the matter. [6848/13]
View answerSignificant reforms have already been introduced in relation to Public Service pension entitlements which affect both Oireachtas and Ministerial pensions.
- Under the Public Service Superannuation (Miscellaneous Provisions) Act 2004, pensions are not payable to new entrant Public Servants (as defined in the Act) before 65 years of age. This includes new Oireachtas Members as defined in the Act.
- Under the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices Act 2009, Ministerial pensions are no longer payable to sitting Members of the Oireachtas following the last general election, or to Members of the European Parliament following the next elections to the Parliament. No current Oireachtas Member is paid a Ministerial pension.
- Public Service pensions for persons (including former Ministers and members of the Oireachtas) who retired after February 2012 are reduced in line with the substantial pay reductions applied across the Public Service under the Financial Emergency Measures in the Public Interest (FEMPI) Acts. For those who retired before the end of February the Public Service Pension Reduction (PSPR) applies. I recently provided for an increase in the rate of PSPR that applies to pensions over €100,000 to 20% (in addition to all other deductions).
- The Public Service Pensions (Single Scheme and Other Provisions) Act 2012, introduced a new Single Public Service Pension Scheme with a new minimum pension age of 66, rising in due course with the age at which the State Pension (Contributory) will become payable. This scheme will also apply to all new Members of the Oireachtas, including new entrant Ministers, as defined in the Act. The Act also provides pensions for all Public Servants who are subject to this Act to be based on career average earnings, as opposed to the current final salary basis.
In addition, I announced in my Budget speech that severance payments payable to Ministers and other Officeholders upon cessation of Office are to be abolished. The necessary legislation is currently being prepared in my Department.
It is to be noted that I am advised that as a pension is generally taken to be deferred income it is therefore covered by the constitutional protections that apply to property.
