Dáil Éireann Debate, Friday - 6 September 2019
177. Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform when he plans to remove the public service pension reduction from public service pensioners; and if he will make a statement on the matter. [35631/19]
View answerThe Financial Emergency Measures in Public Interests (FEMPI) Act 2015 and the Public Service Pay and Pensions Act 2017 (the 2017 Act) substantially lessened the impact of the public service pension reduction (PSPR) by way of changes which have occurred or are due to occur on 1 January in each of the years 2016, 2017, 2018, 2019 and 2020. These changes mean that, as of 1 January 2018, most public service pensions have not been subject to the PSPR.
The PSPR rates applying in 2019 and from 2020 are set out as follows. When the PSPR amelioration provisions in the 2017 Act are fully in place from 1 January 2020, only a small number of public service pensions will remain affected by the PSPR. Section 27 of the 2017 Act states that the Minister for Public Expenditure and Reform will, no later than 31 December 2020, issue an order which will specify a date for the full removal of the PSPR from that residual group of PSPR-affected pensions. The date so specified in the order will effectively be the date of the complete abolition of the PSPR.
Pensions awarded pre-March 2012: The PSPR position with effect from 1 January 2019 and 2020 is as per the following table.
|
Annualised amount of public service pension |
Reduction |
|
Up to €39,000 (€54,000*) |
Exempt |
|
Any amount over €39,000 (€54,000*) but not over €60,000 |
12% |
|
Any amount over €60,000 but not over €100,000 |
17% |
|
Any amount over €100,000 |
28% |
* Effective 1 January 2020
Pensions awarded in the period 1 March 2012 to 1 April 2019: The PSPR position with effect from 1 January 2019 and 2020 is as per the following table.
|
Annualised amount of public service pension |
Reduction 2019 |
Reduction 2020 |
|
Up to €60,000 |
Exempt |
Exempt |
|
Any amount over €60,000 but not over €100,000 |
3% |
1% |
|
Any amount over €100,000 |
8% |
6% |
Pensions awarded in respect of retirements after the FEMPI 2013 grace period, which expired on 1 April 2019, have not been subject to PSPR.
