Dáil Éireann Debate, Wednesday - 6 July 2016
35. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure and Reform if he will consider speeding up the restoration of the public service pension so that pensioners revert to their pre-financial emergency measures in the public interest legislation pensions by 1 January 2017; and if he will make a statement on the matter. [19755/16]
View answerIn June 2015, Government approved proposals for a significant amelioration of pension reductions which had been applied under the financial emergency (FEMPI) legislation to all public service pensions above specified thresholds. This amelioration of the Public Service Pension Reduction (PSPR), which subsequently became law under the Financial Emergency Measures in the Public Interest Act 2015, provides for changes to occur in three phases, on 1 January 2016, 1 January 2017 and 1 January 2018.
On 1 January 2016, increases in the exemption thresholds for PSPR application were activated. These exemption threshold increases fully removed PSPR from a significant number of pensions with relatively lower values, while those pensions which continue to be impacted by PSPR received 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 phase 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.
These phased PSPR changes 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.
In my annual report last month to the Houses of the Oireachtas under section 12 of the Financial Emergency Measures in the Public Interest Act 2013, I concluded that it was necessary to continue to apply the pay and pension measures under the FEMPI 2009 to 2013 Acts, including the PSPR. Consistent with that position, I do not plan to bring forward the pension restoration element due on 1 January 2018 to 1 January 2017.
