Since its introduction in 2011, the Public Service Pension Reduction (PSPR) has applied more significant cuts in both absolute and proportionate terms to public service pensions of relatively higher values while at 2015 year-end, an estimated 33% of public service pensions of relatively lower values were completely exempt from PSPR.
Scheduled over three stages between 2016 and 2018, the initial measures for restoring public service pensions as provided for under the Financial Emergency Measures in the Public Interest (FEMPI) 2015 Act are based principally on increases to the thresholds before PSPR is applied. On that basis these restoration measures are effective in removing PSPR entirely, that is to say restoring full payment rates, in the cases of those lower value pensions previously affected by PSPR.
At 2015 year-end, all public service pensions with annual values up to €12,000 were exempt from PSPR. In 2016, all pensions up to €18,700 are exempt from PSPR. From 1 January 2017, all pensions below €26,000 will be exempt from PSPR, and from 1 January 2018 all pensions up to €34,132 per year will be exempt from PSPR. The increases in exemption thresholds also provide a boost to public service pensions above the applicable thresholds, in most cases delivering a cumulative pension restoration of €400 per year in 2016, €500 per year in 2017 and €780 per year in 2018.
Based on available data and making assumptions for future retirements and mortality rates, the estimated reduction in public service pension costs delivered by PSPR is as follows: €100 million in 2011, €100 million in 2012, €120 million in 2013, €140 million in 2014, €135 million in 2015, €105 million in 2016, €75 million in 2017 and €45 million in 2018. These figures indicate the much reduced saving to the public finances arising from the FEMPI 2015 pension restoration measures.
Details of the estimated PSPR impacts on individual pensions and the associated amelioration impacts provided for under the FEMPI 2015 pension restoration measures by reference to the pension income bands included in the Deputy's question are set out in the following tables.
Table A shows the PSPR amelioration (restoration effect) on most PSPR-impacted pensions, being the pensions paid in respect of persons who retired before 1 March 2012.
Table A:
|
Pre-PSPR Pension
(€)
|
2015 PSPR
(€)
|
2016 PSPR
(€)
|
2017 PSPR
(€)
|
2018 PSPR
(€)
|
Total Pension Restored
(€)
|
|
14,000
|
120
|
0
|
0
|
0
|
120
|
|
16,000
|
240
|
0
|
0
|
0
|
240
|
|
18,000
|
360
|
0
|
0
|
0
|
360
|
|
20,000
|
480
|
78
|
0
|
0
|
480
|
|
25,000
|
810
|
408
|
0
|
0
|
810
|
|
30,000
|
1,260
|
858
|
360
|
0
|
1,260
|
|
32,000
|
1,440
|
1,038
|
540
|
0
|
1,440
|
|
35,000
|
2,280
|
1,880
|
1,380
|
600
|
1,680
|
|
40,000
|
2,880
|
2,480
|
1,980
|
1,200
|
1,680
|
|
50,000
|
4,080
|
3,680
|
3,180
|
2,400
|
1,680
|
|
60,000
|
5,280
|
4,880
|
4,380
|
3,600
|
1,680
|
|
70,000
|
6,980
|
6,580
|
6,080
|
5,300
|
1,680
|
|
80,000
|
8,680
|
8,280
|
7,280
|
6,900
|
1,680
|
|
100,000
|
12,080
|
11,680
|
11,180
|
10,400
|
1,680
|
Table B shows the PSPR amelioration for
the much less numerous group of pensions awarded in respect of retirements on or after 1 March 2012.
Table B:
|
Pre-PSPR Pension
(€)
|
2015 PSPR
(€)
|
2016 PSPR
(€)
|
2017 PSPR
(€)
|
2018 PSPR
(€)
|
Total Pension Restored
(€)
|
|
14,000
|
0
|
0
|
0
|
0
|
0
|
|
16,000
|
0
|
0
|
0
|
0
|
0
|
|
18,000
|
0
|
0
|
0
|
0
|
0
|
|
20,000
|
0
|
0
|
0
|
0
|
0
|
|
25,000
|
0
|
0
|
0
|
0
|
0
|
|
30,000
|
0
|
0
|
0
|
0
|
0
|
|
32,000
|
0
|
0
|
0
|
0
|
0
|
|
35,000
|
570
|
171
|
0
|
0
|
570
|
|
40,000
|
720
|
321
|
20
|
0
|
720
|
|
50,000
|
1,020
|
621
|
220
|
0
|
1,020
|
|
60,000
|
1,320
|
921
|
420
|
0
|
1,320
|
|
70,000
|
1,820
|
1,421
|
920
|
500
|
1,320
|
|
80,000
|
2,320
|
1,921
|
1,420
|
1,000
|
1,320
|
|
100,000
|
3,320
|
2,921
|
2,420
|
2,000
|
1,320
|
