Richard Boyd Barrett
Question:280. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure and Reform the estimated full year cost of repealing the FEMPI legislation. [24803/20]
View answerTuesday, 22 September 2020
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Written answers
The unwinding of the emergency FEMPI legislation commenced with the Lansdowne Road Agreement, 2016 - 2018 and is continuing under the Public Service Stability Agreement, 2018 - 2020 (PSS). To date, salary rates up to €50,000 have been fully restored.
On 1 October 2020, under the PSSA, annualised salaries for all public sector employees will be increased by 2% . At this point, annualised salary rates up to €70,000, which accounts for over 90% of the public service, will be fully restored.
Allowances reduced under the 2009 FEMPI act are also set to be fully restored on the 1 October 2020. Both these measures are provided for in primary legislation in the Public Services Pay and Pensions Act 2017.
Separately, the Public Service Pay and Pensions Act 2017 provides for the full unwinding of the Public Service Pension Reduction (PSPR). To date, the vast majority of public service pensioners (an estimated 97%) have been removed from the PSPR. A residual group of 3 - 4,000 pensioners remain affected.
In addition, a Ministerial Order is required to complete FEMPI pay restoration for those public servants whose salary will not be fully restored (those on annualised remuneration greater than €70,000) through the PSSA increases. Under section 19 and section 20 of the Public Service Pay and Pensions Act, for those covered by the Agreement, the legislation provides for these remaining amounts to be paid no later than July 2022.
Combined, the full year cost of the measures above are estimated at €520m.