Wednesday, 2 October 2013

Questions (172)

Michael Creed

Question:

172. Deputy Michael Creed asked the Minister for Public Expenditure and Reform the current situation regarding the public service pension reduction as it relates to combined or aggregated pensions and the application of the 28% reduction in same as provided for in the Financial Emergency Measures in the Public Interest Act 2010 and amended by the Public Service Pensions (Single Scheme and Other Provisions) Act 2012; if he has signed an order setting a commencement date for this aggregation of public service pensions for public service pension reduction purposes; and if he will make a statement on the matter. [41535/13]

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Written answers (Question to Public)

The aggregation of public service pensions for purposes of the Public Service Pension Reduction (PSPR) means that pensioners who have two or more qualifying public service pensions, which have a combined (pre-PSPR) value of over €32,500, have those pensions subjected to PSPR on a combined or aggregated basis, not separately as has previously been the case. I decided that this aggregation of public service pensions for purposes of imposing PSPR should commence on 1 September 2013, and in this connection I signed the Public Service Pensions (Single Scheme and Other Provisions) Act 2012 (Sections 68, 69, 70 and 71) (Commencement) Order 2013 (Statutory Instrument No. 314 of 2013). The imposition of revised PSPR amounts in respect of aggregation-affected public service pensioners is underway across public service pensioner payrolls. For the subset of such pensioners whose public service pension income exceeds €100,000, the 28% reduction rate duly applies to the excess over €100,000.