Dáil Éireann Debate, Tuesday - 27 June 2023
239. Deputy Róisín Shortall asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if a response will issue to matters raised in correspondence (details supplied); if he intends to make any changes to the supplementary pension to address this issue; and if he will make a statement on the matter. [31277/23]
View answerAs the Deputy may be aware, I have overall policy responsibility in relation to public service occupational pension schemes payable to retired public servants.
Since 6 April 1995, not just within the HSE but across the public service, all newly-appointed public servants became fully insured under the Social Insurance System (pay Class A PRSI). A public servant paying Class A PRSI will receive both an occupational pension and, it is assumed, they will be also be entitled to the maximum rate of the SPC. This is known as ‘integration’, and is also sometimes referred to as 'coordination', it is not unique to the public service.
In respect of public servants, their pension payment comprises of three components:
1. Public Service Occupational Pension payable by the public service employer;
2. Social Insurance Benefit(s) (State Pension Contributory (SPC), Jobseeker’s Benefit etc.), payable, subject to eligibility, by the Department of Social Protection; and
3. Where the full rate of SPC is not payable, a supplementary pension equivalent to a non-integrated pension, which is payable, subject to eligibility, by the public service employer.
Where a public servant does not qualify for the SPC or qualifies for a Social Insurance benefit at less than the value of the SPC they may be entitled to an occupational supplementary pension, subject to eligibility criteria, including the retired public servant shall not be in paid employment and:
1. fails to qualify for Social Insurance Benefit or
2. qualifies for Social Insurance Benefit at a reduced rate and
3. has reached minimum pension age or is in receipt of an ill-health pension.
It is worth noting that if an individual, in receipt of an occupational supplementary pension, takes up employment, for example, for one day, the occupational supplementary pension would cease for that one day and be payable for the other 4 working days in the week (on a pro-rata basis), similar to how an entitlement to Jobseeker’s Benefit is treated.
Separately, a retired public servant returning to work in the public service may be subject to abatement where their public service pension when combined with the remuneration in the new position exceeds their pensionable remuneration (as uprated) in their previous public service employment. In this regard, social welfare benefits are not included in these calculations and the pension of an individual whose pension is paid solely by the employer (i.e. no entitlement to the SPC and/or an occupational supplementary pension) would be subjected to a higher level of abatement than that of their colleagues whose pension is comprised of an occupational pension and a social welfare pension. Abatement is applied periodically and pro-rata - only the pension is abated. The policy rationale behind abatement is to avoid a situation where individuals benefit from both a valuable public service pension and also a public service salary. In that context, pension abatement represents a suitable and measured response to legitimate public concerns and remains a key component of Public Service pension policy.
