Brendan Griffin
Question:350. Deputy Brendan Griffin asked the Minister for Public Expenditure and Reform if he will consider the request of a group (details supplied); and if he will make a statement on the matter. [38180/15]
View answerTuesday, 3 November 2015
Questions (350)
Written answers
I note that my proposals to Government earlier this year in respect of the amelioration of the Public Service Pension Reduction (PSPR) reductions, and which now form part of the Financial Emergency Measures in the Public Interest Bill 2015, were welcomed at that time by the Alliance. I am also aware of the additional concerns of the Alliance of Retired Public Servants regarding the need to provide for the ending of the PSPR reduction on public service pensions. Both I and my officials have met with representatives of the Alliance on a number of occasions.
As noted in June this year in my Annual Report on the various FEMPI measures, the significant improvement in Ireland's economic and fiscal position means that there is now scope for an amelioration of those measures as they apply to the pay and pensions of public service workers and pensioners. In acting to give effect to such amelioration in the 2015 Bill, in line with my stated commitments, I prioritised lower income public service pensioners. In specific terms, the proposals in the Bill provide for the part-restoration of the PSPR cuts in three stages effective from 1 January 2016, 1 January 2017 and 1 January 2018. When fully rolled-out from 1 January 2018, these proposals mean that all public service pensions in payment with pre-PSPR values of up to €34,132 will be fully exempt from PSPR, while those pensioners not fully removed from the reach of PSPR will, in general, benefit by €1,680 per year. The cost of these proposed changes is estimated at about €90 million on a full-year basis from 2018. I would also point out that PSPR has never been applied to those retired public servants and their dependants on the lowest annual pensions up to €12,000.
Based on the 2015 Bill's PSPR proposals which I have outlined, a major amelioration of the PSPR burden over a multi-year time horizon is proposed, at the end of which the great majority of public service pensioners, with the exception of those on the higher levels of pension income, will no longer be affected by PSPR.
Under section 12 of the FEMPI Act 2013, I am required to review the necessity of FEMPI legislation annually and cause a written report of my findings to be laid before each House of the Oireachtas. Economic progress and fiscal consolidation in the years ahead will determine the scope and timing of possible further scale-back or elimination of the financial emergency measures including those applying to public service pensioners.