Dáil Éireann Debate, Tuesday - 23 April 2024
218. Deputy Peadar Tóibín asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if she plans to review the rules of the supplementary pension whereby, if a person takes up any paid employment of any duration, they would lose the entire supplementary element of their pension; and if he will make a statement on the matter. [17687/24]
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, 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 also be entitled to the maximum rate of the State Pension Contributory (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:
• fails to qualify for Social Insurance Benefit or
• qualifies for Social Insurance Benefit at a reduced rate and
• 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. A pro-rated occupational supplementary pension is based on number of days during which the pensioner is not employed, rather than monetary amount earned, e.g. if an individual in receipt of an occupational supplementary pension takes up employment for 1 day a week, the occupational supplementary pension would be payable at 80% (i.e. 4/5th), rather than ceasing in its entirety. The onus is on the individual to notify their pension paying authority should there be any change in their employment status.
