Dáil Éireann Debate, Wednesday - 7 May 2014
97. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform the total projected cost to the Exchequer of section 11 of the Financial Emergency Measures in the Public Interest Act 2013, which, effective from 1 January 2014, reduces the pension related deduction rate on the €15,000 to €20,000 pay band from 5% to 2.5%; and if he will make a statement on the matter. [20398/14]
View answerThe reduction in the rate of Pension Related Deduction (PRD) applied to the €15,000 to €20,000 band of pay fell from 5% to 2.5% on 1 January 2014. This rate cut is worth €125 annually in gross terms to most public servants, with those taxed at the standard rate enjoying the greater gain in terms of take-home pay boost. In terms of annual impact on the public finances, this rate reduction is expected to reduce overall PRD receipts by some €40 million.
