Dáil Éireann Debate, Wednesday - 4 February 2015
69. Deputy Seán Kyne asked the Minister for Public Expenditure and Reform if, in relation to the deadline of 30 June 2015 for the provision under the Financial Emergency Measures in the Public Interest Act 2013 relating to what is known as the grace period for retirement for those affected by the pay reductions under the Act, this deadline is fixed; or if there are plans or flexibility on extending it. [5179/15]
View answerUnder the Financial Emergency Measures in the Public Interest Act 2013, the current 'grace period' is due to expire at the end of June 2015. This remains the position.
As the deputy will be aware, the effect of the 'grace period' is that persons who retire during it have their gross superannuation benefits calculated on the basis of the pre-pay cut pay rates, which were reduced on July 2013 by 5.5% or more. Pensions are then subject to a reduction under the same legislation of between 2 and 5%, reducing the immediate benefit to the individual.
Section 9(1)(b)(ii) of the legislation empowers me to extend the 'grace period' provided for under the Act, taking into account such legal, superannuation and personnel management issues affecting public service bodies as I consider appropriate. I am currently considering making a further order under this provision and will make a decision in the coming weeks.
