Dáil Éireann Debate, Tuesday - 21 April 2015
317. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the amount raised in 2014 from the public service pension reduction applied to pensions of €12,001 to €24,000, from those who retired on or before 29 February 2012, and those who retired from 1 March 2012; and if he will make a statement on the matter. [15401/15]
View answer318. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the amount raised in 2014 from the public service pension reduction applied to pensions of €24,001 to €60,000 from those who retired on or before 29 February 2012, and those who retired from 1 March 2012; and if he will make a statement on the matter. [15402/15]
View answer319. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the amount raised in 2014 from the public service pension reduction applied to pensions of €60,001 to €100,000 from those who retired on or before 29 February 2012, and those who retired from 1 March 2012; and if he will make a statement on the matter. [15403/15]
View answer320. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the amount raised in 2014 from the public service pension reduction applied to pensions of over €100,000 from those who retired on or before 29 February 2012, and those who retired from 1 March 2012; and if he will make a statement on the matter. [15404/15]
View answerI propose to take Questions Nos. 317 to 320, inclusive, together.
In my last review of the Financial Emergency Measures in the Public Interest (FEMPI) Acts laid before the Houses of the Oireachtas in June 2014, the Public Service Pension Reduction (PSPR) was estimated to save in the region of €125 million annually.
Public service pensions awarded to or in respect of persons retiring or reaching preserved pension age from 1 March 2012 onwards are based on lower final salaries than for earlier-awarded pensions, insofar as they factor in the pay reductions, ranging from 5% to 15%, imposed across the public service with effect from 1 January 2010 under the Financial Emergency Measures in the Public Interest (No. 2) Act 2009.
To reflect the impact of these lower final salaries on more recent pension awards, PSPR, as originally legislated for commencement on 1 January 2011, did not apply to pensions awarded on or after 1 March 2012.
Subsequently, as provided for under the Financial Emergency Measures in the Public Interest Act 2013, and effective 1 July 2013, further pension decreases ranging from 2% to 5% were imposed on all public service pensions above €32,500.
These decreases were implemented by introducing PSPR at special low rates on post-February 2012 pensions, while at the same time adjusting upwards the PSPR rates applying to earlier-awarded pensions.
The best available estimate of the requested breakdown of the annual PSPR saving, based on pension distribution in 2012, is provided below:
Pensions awarded to or in respect of public servants retiring or reaching preserved pension age on or before 29 February 2012:
|
Pension level |
Estimated Saving |
|
€12,000 - €24,000 |
€10.4 million |
|
€24,000 - €60,000 |
€93.7 million |
|
> €60,000 |
€18.7 million |
Pensions awarded to or in respect of public servants retiring or reaching preserved pension age on or after 1 March 2012:
|
Pension level |
Estimated Saving |
|
€12,000 - €24,000 |
€0 |
|
€24,000 - €60,000 |
€2.0 million |
|
> €60,000 |
€0.4 million |
