Dáil Éireann Debate, Tuesday - 24 April 2018
154. Deputy Seán Haughey asked the Minister for Public Expenditure and Reform the schedule to fully restore the pensions of retired public servants having regard to previous deductions under FEMPI legislation; and if he will make a statement on the matter. [17917/18]
View answerOn 1 January 2018, public service pensions impacted by the Public Service Pension Reduction (PSPR) qualified for an effective increase by way of a lessening or amelioration of PSPR, as required under the Financial Emergency Measures in the Public Interest Act 2015. I understand that such increases have, in general, been implemented through pension payrolls across the various public service sectors.
In addition to this, the Public Service Pay and Pensions Act 2017 provides for the significant further lessening of PSPR, occurring by way of threshold and rate changes to apply on 1 January 2019 and 1 January 2020.
This scheduled further lessening of the PSPR impact on pensions will mean that from 1 January 2019 all pensions up to €39,000 per annum will be exempt from PSPR, removing some 12,000 pensioners from the impact of PSPR.
From 1 January 2020, further PSPR amelioration will mean that all pensions up to €54,000 per annum will be exempt from PSPR, removing some 10,500 additional pensioners from the impact of PSPR.
When fully in place from the beginning of 2020, these changes will mean that the vast majority of public service retirees - approximately 97% - comprising everyone with occupational pension values up to at least €54,000, will be entirely free of PSPR. For those who retired since end-February 2012 that threshold will be even higher at €60,000.
