Dáil Éireann Debate, Tuesday - 22 September 2020
283. Deputy Robert Troy asked the Minister for Public Expenditure and Reform if he will address a matter regarding section 52 of the Public Service Pensions (Single Scheme and other Provisions) Act 2012 (details supplied). [24892/20]
View answerAs the Deputy may be aware, the principle of abatement of a public service pension is longstanding within the rules of various public service pension schemes and pension abatement is an important aspect of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012 ("the Single Scheme Act"). Abatement addresses valid concerns about simultaneous payment of both pension and salary in the Public Service.
Section 52 (1) of the Act provides for the abatement of a public service pension where a retired public servant, whose pension is in payment, is re-employed in the public service such that no more of the pension when combined with the remuneration in the new position shall exceed the pensionable remuneration of the old position.
More detailed responses to the Deputy's specific questions are set out below:
(i) List of commercial semi-state bodies, including subsidiaries, where the imposition of a pension abatement is not a feature of employment contracts
The Single Scheme Act provides that where a public service pensioner is re-employed in a Public Service Body, any pension in payment will be subject to abatement. The Act defines what a public service body is and the Schedule to the Act defines a list of Bodies to which the definition of "Public Service Body" does not apply. This is set out as follows below:
1. A body corporate established by Act of Parliament before 6 December 1922 that, upon its establishment, was of a commercial character.
2. Irish Bank Resolution Corporation Limited.
3. Bord Gáis Éireann.
4. Bord na gCon.
5. Bord na Móna.
6. Córas Iompair Éireann.
7. Coillte Teorants (being a company formed and registered under the Companies Acts as provided for by Section 9 of the Forestry Act 1988).
8. Cork Airport Authority, public limited company.
9. Dublin Airport Authority, public limited company.
10. Electricity Supply Board.
11. EirGrid.
12. A harbour authority within the meaning of the Harbours Act 1946 or company to which section 7 of the Harbours Act 1996 relates.
13. Horse Racing Ireland.
14. Irish National Stud Company Limited.
15. Irish Aviation Authority.
16. An Post.
17. An Post National Lottery Company.
18. Raidió Teilifís Éireann.
19. Shannon Airport Authority, public limited company.
20. Teilifís Na Gaeilge.
21. Railway Procurement Agency.
22. Voluntary Health Insurance Board.
23. A subsidiary of a body to which this Schedule relates, including a subsidiary of such a subsidiary.
The exact details regarding subsidiaries is a matter for each body listed above to clarify as the full range of subsidiaries is not set out in the Act.
(ii) Other state, semi-state, or publicly funded body or company (either in part or wholly), where the imposition of pension abatement is not a feature of employment contracts Retired public servants appointed to the bodies listed above would not be subject to pension abatement. Appointments to all other public service bodies are subject to pension abatement in accordance with Section 52(1) of the Single Scheme Act, 2012.
Spike Island Development CompanyI am informed that Spike Island Development Company is a subsidiary of Cork County Council and therefore would be encompassed by the definition of a public service body provided in Section 5 of the Single Scheme Act, 2012. This definition notes that any subsidiary of, or company controlled (within the meaning given by section 10 of the Taxes Consolidation Act 1997) by, a body to which paragraph (d) (e) or (h) relates and in respect of which a pre-existing public service pension scheme exists or applies or may be made. Paragraph (d) refers to local authorities( i.e. Cork County Council in this instance) bringing the development company within the scope of abatement.
Accordingly, an individual who takes up a position in Spike Island Development Company and who is in receipt of a public service pension or whose public service pension comes into payment during such employment will be subject to abatement in accordance with Section 52 of the Single Scheme Act, 2012.
Queries in relation to employment in a particular organisation and the possible conditions attached to such employments, such as abatement, should be addressed to the Local HR unit of the relevant organisation and/or the Body to which the organisation a subsidiary.
