Dáil Éireann Debate, Tuesday - 11 February 2014
234. Deputy Mattie McGrath asked the Minister for Public Expenditure and Reform the terms of pension-related deduction which were introduced as part of the Financial Emergency Measures in the Public Interest Act 2009; if he plans to refund those on salaries under €30,000 as promised; and if he will make a statement on the matter. [6179/14]
View answerIn line with the commitments given under the Haddington Road Agreement, provision was made in the Financial Emergency Measures in the Public Interest Act 2013, for the rate of Pension-Related Deduction (PRD) on the €15,000 to €20,000 band of remuneration received by a public servant in a year to be reduced from 5% to 2.5%. . This rate cut introduced with effect from 1 January 2014 is worth €125 annually in gross terms to most public servants, with persons taxed at the standard rate enjoying the greater gain in terms of take-home pay. Following this rate cut, the full set of PRD deduction rates as applied to annual remuneration of a pensionable public servant is now as follows: 0% (exempt) up to €15,000.2.5% between €15,000 and €20,000.10% between €20,000 and €60,000.10.5% above €60,000.
Under section 12 of the Financial Emergency Measures in the Public Interest Act 2013, I must review the PRD and other financial emergency measures annually and cause a written report of my findings to be laid before each House of the Oireachtas. My next such report will be laid before the Houses of the Oireachtas by 30 June 2014.
