Dáil Éireann Debate, Thursday - 6 October 2016
182. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform his plans for the public sector pension levy provided for in the FEMPI legislation; and if he will make a statement on the matter. [29092/16]
View answerThe public service Pension-Related Deduction (PRD) is a key part of the set of reductions to public service pay and pensions provided for under the Financial Emergency Measures in the Public Interest (FEMPI) Acts.
As Minister I am required to review and report on the FEMPI legislation annually, and my most recent review was laid before the Houses of the Oireachtas on 29 June 2016. The outcome of that review was that the FEMPI provisions impacting on public service pay and pensions continued to make a vital contribution to necessary fiscal consolidation, and that accordingly there was a need to continue to apply those provisions, including the PRD, subject to the amendments effected in the measures through the Financial Emergency Measures in the Public Interest Act 2015.
The Financial Emergency Measures in the Public Interest Act 2015, which also implements the terms of the Lansdowne Road Agreement (LRA), partially unwinds the pay and pension reductions imposed on serving and retired public servants. This unwinding includes a significant element of relief in relation to PRD, with entry threshold changes implemented in two stages, 1 January 2016 and 1 January 2017, delivering an annual boost of €1,000 for most public servants.
My next review and report on the FEMPI legislation is due before the Houses of the Oireachtas before the end of June 2017, and will then include my assessment in relation to the continued application of PRD.
