Dáil Éireann Debate, Wednesday - 11 February 2015
29. Deputy Joan Collins asked the Minister for Public Expenditure and Reform his views as to the amount that has been collected annually from the pension levy imposed on public sector workers; and his plans on revising this levy as part of the Haddington Road agreement regarding negotiations. [5603/15]
View answerThe public service Pension-related Deduction (PRD), referred to as "the pension levy" in the Deputy's question, was introduced in March 2009 under the Financial Emergency Measures in the Public Interest Act 2009. The Exchequer yield from PRD since its inception up to 2014 is as follows.
|
Year |
PRD Yield (€ million) |
|
2009 |
837.419 |
|
2010 |
948.605 |
|
2011 |
960.224 |
|
2012 |
934.739 |
|
2013 |
925.986 |
|
2014 |
884.369 (provisional) |
|
Total |
5,491.342 |
The amounts in the above table do not include non-Exchequer PRD receipts, as arising for example in the local government sector.
With regard to revising PRD, it is a progressively structured reduction to the pay of pensionable public servants ensuring that those on higher remuneration rates are impacted more adversely than those on lower pay. Given the amounts raised every year, it is therefore a critical component of the public service pay and pension measures adopted as part of our national fiscal consolidation. However, it should be noted that a start has already been made on ameliorating the impact of PRD on public servants. As legislated for in the the Financial Emergency Measures in the Public Interest Act 2013, and as provided for in the Haddington Road Agreement, the rate of PRD on the €15,000 to €20,000 band of pay received in a year fell from 5% to 2.5% on 1 January 2014. This 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. I would envisage that further amendments to the PRD will be raised by the unions and associations representing public servants in the context of the discussions which are likely to take place later this year.
