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Tuesday, 17 Nov 2020

Written Answers Nos. 280-299

Departmental Budgets

Questions (281)

Catherine Murphy

Question:

281. Deputy Catherine Murphy asked the Minister for Finance the way in which his Department’s annual amount for contingent liability is set; the factors considered when setting contingent liability; if forecasting is undertaken regarding setting future amounts; the contingent liability figure for his Department for 2020; and if the contingent has been utilised to date in 2020. [36903/20]

View answer

Written answers

My Department does not have any annual contingent liability amount set aside for 2020.

Tax Credits

Questions (282)

Jennifer Murnane O'Connor

Question:

282. Deputy Jennifer Murnane O'Connor asked the Minister for Finance the estimated full-year cost if the guide dog allowance increased to €950; and if he will make a statement on the matter. [36955/20]

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Written answers

I am advised by Revenue that the estimated full year cost of increasing the guide dog allowance to €950 is approximately €5,000.

The allowance is provided at the standard rate of income tax, where an increase from the current rate of €825 to €950 equates to an increased cost to the Exchequer of €25 (€125 at 20%) per individual.

Less than 200 people are currently benefiting from the allowance.

Covid-19 Pandemic Supports

Questions (283)

Robert Troy

Question:

283. Deputy Robert Troy asked the Minister for Finance if he will make changes to the TWSS and EWSS to allow persons over 70 years of age and still working to be in receipt of same (details supplied). [37005/20]

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Written answers

I wish to advise the Deputy that there are no age restrictions for any of the Covid-19 related schemes that are under the remit of my Department including the Employment Wage Subsidy Scheme (EWSS) and its predecessor the Temporary Wage Subsidy Scheme (TWSS).

The TWSS was in place for 22 weeks between 26 March and 31 August. It was introduced as an emergency income support for employees of vulnerable firms (where turnover had reduced by at least 25% during Q2 while the strictest public health measures were in place) and was paid via the employer so as to maintain employment links between the employee and employer insofar as was possible.

Since 1 September the EWSS has completely replaced the TWSS. The EWSS is an employer subsidy to help support viable firms and encourage employment. The level of subsidy given to the employer is based on the number of paid workers on the payroll per week, applying prospectively so that claims may be made for new hires and seasonal workers. Subject to the other relevant qualifying criteria being met, there is no restriction on persons who are over 70 in the application of the EWSS. The primary qualifying criteria for the EWSS is the “turnover test” and has been specifically designed to target the subsidy at otherwise viable employers whose businesses continue to be adversely impacted by COVID-19 by requiring a comparison of the firm’s pre-pandemic operations with their current operations. The legislation provides that the employer must be able to demonstrate that they are operating at no more than 70% in either the turnover of the employer’s business or the customer orders received by the employer by reference to the period from July to December 2020 compared with the same period in 2019.  The employer must have a tax clearance certificate to be eligible to join the EWSS and must continue to meet the requirements for tax clearance throughout the scheme.

Question No. 284 answered with Question No. 252.
Question No. 285 answered with Question No. 272.

Banking Sector

Questions (286)

Gerald Nash

Question:

286. Deputy Ged Nash asked the Minister for Finance if his Department has received a copy of the terms of reference for the strategic review being undertaken by a bank (details supplied); and if so, if he will publish the terms of reference without delay. [37112/20]

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Written answers

As the Deputy is aware as Minister for Finance I have no role in the commercial decisions made by the banks, including any strategic reviews undertaken. This applies equally to the banks in which the State has a shareholding.

Decisions in this regard are the sole responsibility of the board and management of the banks which must be run on an independent and commercial basis. The independence of banks in which the State has a shareholding is protected by Relationship Frameworks which are legally binding documents that cannot be changed unilaterally. These frameworks, which are publicly available, were insisted upon by the European Commission to protect competition in the Irish market. 

In relation to the specific matter raised by the Deputy, I can confirm that my Department has not received a copy of the terms of reference of the strategic review which he has referred to. I note that the bank involved commented at the time of its 2020 H1 results announcement that it would provide an update in this regard when it announces its full year results.

Banking Sector

Questions (287)

Gerald Nash

Question:

287. Deputy Ged Nash asked the Minister for Finance his plans to broaden the save-as-you-earn scheme out to financial institutions that take deposits but which may not be a bank. [37115/20]

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Written answers

Approved Save-As-You-Earn (SAYE) share option schemes were introduced in 1999 and are provided for in Chapter 3 of Part 17 of the Taxes Consolidation Act, 1997 (TCA) and Schedule 12A of that Act. The schemes are designed to foster employee financial participation and provide for relief from Income Tax, PRSI and Levies on share option gains.

As set out in section 519C of the Taxes Consolidated Acts,  to qualify as a savings institution for the purpose of SAYE, a bank/savings institution must be:

- a person who is a holder of a licence granted under section 9 or an authorisation granted under section 9A of the Central Bank Act 1971, or a person who holds a licence or other similar authorisation under the law of an EEA state, other than the State, which corresponds to a licence granted under the said section 9,

- a building society within the meaning of section 256,

- a trustee savings bank within the meaning of the Trustee Savings Banks Act, 1989,

- the Post Office Savings Bank,

- a credit union within the meaning of the Credit Union Act, 1997, or

- such other person as the Minister for Finance may by order prescribe. 

The Deputy will also be aware that I have recently prescribed by order two UK financial institutions - Yorkshire Building Society (YBS) and Barclays - in order to address a potential problem whereby, in the absence of action, in the case of no deal on EU-UK financial passporting rules by 31 December, Irish employees would lose any benefit in the form of tax relief associated with being members of their SAYE schemes. 

I have no plans at present to extend the arrangements for save as you earn schemes beyond the those outlined above. 

EU Budgets

Questions (288)

Gerald Nash

Question:

288. Deputy Ged Nash asked the Minister for Finance his views on Ireland’s position on the indicative roadmap on the introduction of new EU own resources over the 2021 to 2027 period agreed by the EU on 10 November 2020 which includes a plastics-based contribution as of 2021, an emissions trading system-based own resource from 2023, possibly linked with a carbon border adjustment mechanism, a digital levy from 2023, a financial transactions tax-based own resource in addition to a financial contribution linked to the corporate sector or a new common corporate tax base from 2026; and if he will make a statement on the matter. [37116/20]

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Written answers

 As the Deputy will be aware, on 21 July 2020, Heads of State and Government at European Council reached agreement on the Post-2020 MFF and Next Generation EU, totalling €1.82 trillion. I welcome this agreement and think this is a fair and balanced outcome and demonstrates that Europe can work collectively to deal with this once-in-a-generation crisis.

That agreement included the introduction of a plastics-based own resource in 2021, along with the expectation that the Commission will put forward proposals on a digital levy and a carbon border adjustment in 2021 and on an amended Emissions Trading System, and that the Union would work towards other new own resources, possibly including a financial transactions tax.

The agreement was then subject to discussions with the European Parliament with a view to securing its consent. The German Presidency of the Council of the EU on 10 November reached a political agreement with the European Parliament’s negotiators in those talks. The deal will now be submitted to Member States for endorsement.

Part of that agreement includes an indicative roadmap on the introduction of new own resources over the 2021 to 2027 period. This sets out that a plastics-based own resource will be introduced in 2021, and Commission proposals are expected in the coming years on own resources based on the Emissions Trading System, a carbon border adjustment mechanism, a digital levy, and possibly a financial transactions tax and/or a financial contribution linked to the corporate sector/new common corporate tax base.

If and when such proposals are received, Ireland will consider them on their merits and engage in constructive negotiations in Council following the applicable procedures under the Treaties.

Vehicle Registration Tax

Questions (289)

Aindrias Moynihan

Question:

289. Deputy Aindrias Moynihan asked the Minister for Finance if consideration is being given to increase the VRT refund available to disabled drivers, given the recent increases in VRT in budget 2021; and if he will make a statement on the matter. [36696/20]

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Written answers

From January 2021 a new vehicle registration tax (VRT) table is being introduced to: use the CO2 values from a new EU emissions test for passenger cars, known as “WLTP”; and strengthen the environmental rationale of the VRT regime in line with Government commitments to radically reduce emissions from road transport and to reform the VRT regime.

The existing 11 band table is replaced with a 20 band table with a revised rates structure. Whereas current VRT rates range from 14% to 36%, the new VRT table has a range from 7% to 37% resulting in significant reductions in VRT for Hybrids and other well performing cars.

The Disabled Driver and Disabled Passengers (Tax Concessions) Scheme provides for relief on VAT and VRT, based on how much the car has been adapted and whether the beneficiary is a driver or passenger, up to a maximum of 

- Disabled drivers: €10,000

- Disabled passengers: €16,000

- Specifically adapted vehicles for drivers with severe disabilities: €16,000 (Specifically adapted vehicles are vehicles that need significant adaptations)

- Extensively adapted vehicles for drivers and passengers: €22,000 (Extensively adapted vehicles are vehicles that need adaptations that cost more than the open market selling price of the vehicle being adapted)

The scheme also provides for  an exemption from motor tax and an annual fuel grant. The cost of the scheme in 2019, excluding motor tax, was €72m.

As the changes to VRT do not represent an increase in many cases and the refund reflects both VRT and VAT, I will not be amending the refund bands at this time.

Question No. 290 answered with Question No. 272.

Insurance Costs

Questions (291)

Aindrias Moynihan

Question:

291. Deputy Aindrias Moynihan asked the Minister for Finance the legislative steps planned to tackle the ongoing high cost of insurance, especially motor insurance; and if he will make a statement on the matter. [36698/20]

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Written answers

The Programme for Government sets out a range of commitments to reform the insurance sector, including to increase both the affordability and availability of cover. Work has begun to implement these.  In this regard, a Sub-Group of the Cabinet Committee on Economic Recovery and Investment was established by Government to oversee insurance reform implementation, and held its first meeting on 30 September.  This is chaired by the Tánaiste, and also includes as standing members, Ministers McGrath, McEntee, O’Gorman and myself, together with Ministers of State Troy and Fleming.  I strongly believe this cross-departmental approach provides the best opportunity to address the cost and availability of insurance and will build and expand upon previous commendable work done by the Cost of Insurance Working Group (CIWG), which published its Eleventh and Final Progress Update report on 30 October. 

By way of update, a new insurance reform Action Plan is being developed which will outline a range of deliverables, including potential legislation where required in a number of Government Department policy areas, and will be published before the end of the year.  Work is already underway in relation to a number of areas, including:

- increasing market transparency following the publication of the second private motor report of the National Claims Information Database (NCID), and the planned expansion of the scope of the NCID to include employer and public liability insurance;

- reviewing duty of care legislation;

- providing for the Judicial Council’s accelerated adoption by 31 July 2021 of new personal injuries guidelines to replace the Book of Quantum;

- consideration by the Department of Justice of the Law Reform Commission’s recent Report on Capping Damages in Personal Injuries Actions, with a view to presenting options for progressing this by the end of the year;

- looking at how to further enhance the role of the Personal Injuries Assessment Board; and,

- making proposals on increasing competition in the Irish insurance market. 

It is anticipated that the Sub-Group should be able to report on progress in relation to these before the end of this year.  In addition to this work, there has been a fresh round of intensive engagement with key stakeholders. In this regard, Minister of State Fleming has held meetings with the Alliance for Insurance Reform; the State Claims Agency; Insurance Ireland; Irish Public Bodies Mutual Insurance; the Central Bank of Ireland; and Brokers Ireland.  More recently, he has concluded a series of meetings with the main insurers in the Irish market.  It is also his intention to meet shortly with the Law Society of Ireland, the Bar Council of Ireland and MIBI.

With regard to the issue of motor insurance premiums more specifically, I would draw the Deputy’s attention to data from the recently published second NCID Private Motor Insurance Report from the Central Bank. This shows that, after peaking in Q2 2018, the earned premium for private motor insurance decreased by 9 per cent up to the end of 2019.  I would reasonably expect that the next year’s report will show further reductions in the average earned premiums for private motor insurance into 2020.  Separately, the Central Statistics Office (CSO) in last week’s October Consumer Price Index, the private motor insurance component shows that premiums have reduced by about 30 per cent from their July 2016 peak.  While for methodological reasons, these datasets are not directly comparable, both have indicated the same downward trend for some time. This reflects the positive work done by the CIWG, and it is the Government’s intention to build on this success.

In conclusion, seeking to secure a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key priority issue for this Government.  Minister of State Fleming and my Department will continue to play a lead role in this policy area.

Motor Insurance

Questions (292)

Aindrias Moynihan

Question:

292. Deputy Aindrias Moynihan asked the Minister for Finance the status of the implementation of the recommendations made in the report of the working group on reducing the cost of motor insurance; the number of recommendations that have not been implemented to date; the reason for same; and if he will make a statement on the matter. [36699/20]

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Written answers

At the outset, I want to emphasise the key importance that Government places on the insurance reform agenda. This is reflected in the Programme for Government which identifies a range of issues that need to be tackled on a Whole-of-Government basis, including inter alia: continued reform of the Personal Injuries Assessment Board (PIAB); review of duty of care; the need to reduce award levels for general damages; and tackling fraud. I also look forward to the Judicial Council’s Personal Injuries Guidelines being adopted and implemented by mid-2021.

This ambitious reform agenda is being led by the Cabinet Committee on Economic Recovery and Investment’s sub-Group on Insurance Reform.  It is chaired by the Tánaiste, and includes Minister Donohoe, Minister McGrath, Minister McEntee, Minister O’Gorman, Minister of State Troy and myself as standing members.   I strongly believe this cross-departmental approach provides the best opportunity to address the cost and availability of insurance and will build and expand upon previous commendable work done by the Cost of Insurance Working Group, which was established in July 2016 and produced two primary reports, the first on the cost of motor insurance and the second on the cost of employer and public liability insurance. 

My Department published the CIWG’s Eleventh and Final Progress Update Report on 30 October.  This showed that the vast majority of recommendations had been completed.  It was also noted that taking account of the new Whole-of-Government approach, that the outstanding CIWG recommendations will now be implemented through the Cabinet Committees Sub-Group on Insurance Reform.  In that context, the four outstanding recommendations from the CIWG’s Report on the Cost of Motor Insurance, including the reason for their delay, are as follows:

- Recommendation 16 – Ascertain and set out the measures necessary to implement Pre-Action Protocols (PAPs) for personal injury cases:  The Department of Justice has advised that draft regulations on PAPs for medical negligence actions remain under discussion with the Office of the Parliamentary Counsel (OPC).  It has advised that they intend to move this work forward as a matter of urgency.  The finalisation of these Regulations will then inform the work on the PAPs for personal injuries actions.

- Recommendation 22 – Examine the impact of legal and other fees on personal injury awards:  The implementation of this recommendation was contingent on the establishment of the Office of the Legal Costs Adjudicators (OLCA), as provided for under the Legal Services Regulation Act 2015. The OLCA came into operation with effect from 7 October 2019.  The Department of Justice has outlined that a period of at least one to two years from the time this new body became operational will be required before they will have an appropriate data baseline to commence a meaningful review.

-Recommendation 24 – Examine the setting of the discount rate (in personal injury lump sum awards), without prejudice to the outcome of relevant proceedings, and to be reviewed at regular intervals:  The Department of Justice recently ran a public consultation and will provide a report once its review of the discount rate has concluded in the context of the new reform agenda.

- Recommendation 25 – Establish a fully functioning integrated insurance fraud database for industry to detect patterns of fraud:  This recommendation has been delayed as a result of a number of data protection issues.  These are currently being examined by the Department of Justice and other stakeholders.

Notwithstanding these outstanding recommendations, the Deputy will be aware that many positive reforms have been introduced to address the cost and availability of insurance through the CIWG.  These include legislation to: strengthen the role of PIAB; to clarify and widen the role of the Insurance Compensation Fund; to provide access to information regarding claims; to provide more information to consumers at renewal; and to make it easier for businesses to challenge fraudulent claims.  The cumulative impact of these changes has undoubtedly been a factor in helping to reduce motor premiums over the last number of years. The most recent CSO data indicates that the cost of motor insurance is now almost a third lower than it was at its peak in July 2016. 

In conclusion, the CIWG’s remaining recommendations will be part of the Cabinet Sub-group’s work.  The Deputy can rest assured that seeking to secure sustainable competition through deepening and widening the supply of insurance in Ireland is a key priority issue for the new Government and that Minister of State Fleming and I will play a lead role to ensure that progress is made in this policy area.

Departmental Contracts

Questions (293)

Catherine Murphy

Question:

293. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform if his Department has lease arrangements with co-working real estate companies; and if so, the details of the leases, including the terms of the lease, location, price and duration. [35865/20]

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Written answers

`The Commissioners of Public Works (OPW) have not entered into lease arrangements with co-working real estate companies.  A number of licences have been agreed with companies in respect of serviced offices to meet urgent, specialised, generally short term requirements which cannot be met from within the existing portfolio or through traditional lease arrangements.

EU Funding

Questions (294)

Neale Richmond

Question:

294. Deputy Neale Richmond asked the Minister for Public Expenditure and Reform the various EU funds available for cross-Border purposes; and the way in which they are and will be structured and managed pre Brexit and post Brexit. [36298/20]

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Written answers

Cross-border EU funding on the island of Ireland is currently provided via two 2014-20 cooperation programmes, PEACE IV and INTERREG VA.  These two programmes cover an eligible area of Northern Ireland, the border counties of Ireland (Counties Cavan, Donegal, Leitrim, Louth, Monaghan and Sligo) and, (in the case of INTERREG VA only), western Scotland.  The PEACE IV programme has total funding of €270 million, and supports the fostering of peace and reconciliation.  INTERREG VA has total funding of €283 million, and supports economic and social cohesion.  Funding on both programmes is now fully committed to 130 projects across the eligible region.

 The PEACE IV and INTERREG VA programmes are managed by the Special EU Programmes Body (SEUPB), a North South Implementation Body which is jointly sponsored by my Department and the Department of Finance in Northern Ireland.

The January 2020 Withdrawal Agreement between the EU and the UK provides for the full completion of the PEACE IV and INTERREG VA programmes following Brexit.  The current implementation structures for both programmes will be maintained post-Brexit, with SEUPB continuing to manage the programmes.

In addition to these ongoing programmes, the European Commission, in its May 2018 proposals for the Multi-Annual Financial Framework (MFF) and Cohesion Policy for the 2021-27, proposed a special new PEACE PLUS programme. Provision for the PEACE PLUS programme is included in the Withdrawal Agreement, as well as in the Political Declaration. PEACE PLUS will have an eligible area of Northern Ireland and the border counties of Ireland and will combine the current PEACE and INTERREG strands into one new cohesive cross-border programme.  The development process for the new programme is now well advanced.  This process is being led by the SEUPB, in close cooperation with my Department and with the Department of Finance in Northern Ireland.  Similar to arrangements for the current PEACE IV and INTERREG VA programmes, the SEUPB will manage the new PEACE PLUS programme during the 2021-27 programming period.

Data Protection Commissioner

Questions (295)

Patricia Ryan

Question:

295. Deputy Patricia Ryan asked the Minister for Public Expenditure and Reform the status of planned works at the Office of the Data Protection Commissioner, Portarlington, County Laois; and if he will make a statement on the matter. [36373/20]

View answer

Written answers

The Data Protection Commission Office in Portarlington is a leased property.  Therefore Landlord permission is required for works such as those proposed.  On 21 October OPW wrote to the landlord of the property requesting permission to carry out the proposed works.  On 3 November the Landlord reverted to OPW seeking technical information.  This information is currently being prepared.  When all required landlord permissions are in place OPW will be in a position to prepare estimates and tender documentation for the required works.

Budget 2021

Questions (296, 297)

Gerald Nash

Question:

296. Deputy Ged Nash asked the Minister for Public Expenditure and Reform the amount of additional ring-fenced funding to be provided to domestic violence services under budget 2021 in order that services can respond adequately to increased incidence of domestic violence through Covid-19 and beyond; and if he will make a statement on the matter. [37134/20]

View answer

Fergus O'Dowd

Question:

297. Deputy Fergus O'Dowd asked the Minister for Public Expenditure and Reform the additional ring-fenced funding to be provided by his Department to domestic violence services in budget 2021 in order that services can respond adequately to the shadow pandemic of domestic violence through Covid-19 and beyond; and if he will make a statement on the matter. [36348/20]

View answer

Written answers

I propose to take Questions Nos. 296 and 297 together.

The provision of appropriate supports to combat Domestic, Sexual and Gender Based violence is a key priority for Government and is clearly articulated as such in the Programme for Government.  The Cabinet Committee on Social Policy and Public Services has been receiving updates on the inter-agency plan which was specifically developed to address the increased risk of domestic abuse in the context of Covid-19 restrictions.  This plan includes, amongst other initiatives, the establishment of Operation Faoiseamh by An Garda Siochána to proactively call back on victims who had previously reported incidents of domestic violence, the launch of a Department of Justice led public awareness campaign on domestic abuse during lockdown, and increased funding for inter-agency supports this year.  

Although the Department of Public Expenditure and Reform does not have a direct role in relation to the provision of domestic violence services, funding for this issue was also prioritised in the recent Budget 2021 discussions with my Cabinet colleagues. 

Budget 2021 provides for €17.4 billion in additional public expenditure across all Government Departments.   An extra €2.7 million over and above existing funding levels was allocated to the Department of Justice and Equality to combat domestic, sexual and gender based violence, in addition to Budget 2021 funding for domestic violence services provided through other Government Departments and Agencies.  I have noted that other Government Departments and Ministers will be replying directly with further information concerning the funding which their respective Departments are allocating towards services to address domestic violence. 

Office of Government Procurement

Questions (298)

Sorca Clarke

Question:

298. Deputy Sorca Clarke asked the Minister for Public Expenditure and Reform the estimated cost of recruiting five additional full-time higher category specialists at the grade of higher executive officer for the Office of Government Procurement. [36393/20]

View answer

Written answers

Category Specialist Higher is a general service grade, equivalent to Higher Executive Officer, and unique to the Office of Government Procurement.  The current salary scale for civil servants at this grade as of 01 October 2020 is as per the table below.

The annualised first year salary cost of five full-time new entrants to this grade is €231,305 (€46,261 x 5).

Category Specialists

Pension Provisions

Questions (299)

Richard Bruton

Question:

299. Deputy Richard Bruton asked the Minister for Public Expenditure and Reform if recent increases have been made to the pensions of those who retired at the top of the assistant principal scale; if the FEMPI cuts have been fully restored; and if increases are due in respect of more recent pay agreements. [36452/20]

View answer

Written answers

As the Deputy may be aware, the previous Government approved the current pension increase policy for the pre-existing public service pension schemes (i.e. all pension schemes apart from the Single Public Service Pension Scheme) as part of its commitments under the Public Service Stability Agreement 2018-2020 (PSSA).

Under this policy, which applies for the duration of the PSSA, pay increases granted to serving staff over the course of the PSSA are passed on to those pensions awarded under the pre-existing public service schemes where the salary on which the pension is based does not exceed the salary of serving staff with the same grade and scale point, after the pay increase has been applied. If it qualifies, the pension is eligible for an increase to the extent that this will ensure alignment with the pay of serving staff.

The Deputy has asked about civil servants who retired at the maximum of the Assistant Principal (AP) grade. In the response, it is necessary to distinguish between those who retired before 1 March 2012 and those who retired after that date.

Generally, individuals who retired pre-March 2012 will have retired either before imposition of the first FEMPI pay reduction in 2010 or were protected by the first 'grace period' so their pension does not reflect this reduction. APs in this cohort who retired on the maximum point of the scale are not eligible for pension increases arising from PSSA increases to serving staff as the salary on which their pension is based is still higher than the salary of serving staff on the same grade/scale point.

Individuals who retired from 1 March 2012 onwards retired either before the second round of FEMPI reductions were imposed in July 2013, were not affected by this second round of reductions as it only applied to salaries above €65,000, or the salary on which their pension is based does not reflect these reductions as a result of the second 'grace period'. However, given that the salary on which their pension is based encompasses the first FEMPI reduction in 2010, this cohort of retirees are generally eligible for pension increases arising from PSSA pay increases as their pensionable salary will be lower than the salary of serving staff, following each of those pay increases.

The National Shared Services Offices, which administers the civil service pension schemes, has confirmed that the majority of individuals who retired at AP grade from the civil service, and who were eligible for a pension increase on 1 October 2020 have had this increase passed on to them, with a very small number of more complex outstanding cases currently being reviewed.

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