Dáil Éireann Debate, Tuesday - 31 May 2016
552. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform the number of persons who have paid the public service pension reduction, PSPR, in each year since its introduction; the projected number who will pay it in 2016 and 2017; and if he will make a statement on the matter. [12755/16]
View answerPublic service pensions which are affected by the Public Service Pension Reduction (PSPR) are simply reduced in pay-out value, and as such there is no imposition of a levy, deduction or other stoppage for which a centralised collection system is required. However, based on available data sets and making reasonable projections as to future retirements and mortality rates, and factoring in the PSPR amelioration provided by the Financial Emergency Measures in the Public Interest Act 2015, the numbers of pensioners impacted by PSPR over the period 2011 to 2017 are estimated as follows:
|
Year |
Amount |
|
2011 |
84,000 |
|
2012 |
90,000 |
|
2013 |
88,000 |
|
2014 |
88,000 |
|
2015 |
87,000 |
|
2016 |
70,000 |
|
2017 |
48,000 |
On 1 January 2016, increases in the annual pension thresholds before PSPR applies became effective. These exemption threshold increases remove PSPR entirely from a significant number of pensions with relatively lower values, while those pensions which continue to be impacted by PSPR receive a boost of €400 per year.
On 1 January 2017, additional PSPR amelioration, acting principally via further exemption threshold increases, will fully remove PSPR from another significant tranche of public service pensioners, while at the same time boosting those pensions which remain affected by PSPR by €500 per year.
On 1 January 2018, the third stage of PSPR amelioration will ensure that all PSPR-impacted pensions with values up to €34,132 will be fully restored, meaning that PSPR will no longer affect such pensions, while those pensions which continue to be impacted by PSPR will get a boost of, in most cases, €780 per year.
This pension restoration across the public service will cost an estimated €90 million on an annual basis and, when fully implemented, will ensure that only the top 20% higher value public service pensions will continue to be impacted by the PSPR.
