The Financial Emergency Measures in the Public Interest Act
2009 introduced a number of financial emergency measures in the public interest including the making of a pension-related deduction (PRD) from the pay of public servants (including civil servants) who are members of a public service pension scheme or who have an analogous arrangement.
The deduction is calculated by reference to remuneration. Remuneration is defined at section 1 of the Act as emoluments to which Chapter 4 of Part 42 of the Taxes Consolidation Act 1997 applies or is applied and payable by or on behalf of a public service body to a public servant for his or her services as a public servant. This definition includes non-pensionable pay, including overtime, acting-up allowances and benefit-in-kind. The PRD is not a pension contribution and does not confer pension entitlements. As the Deputy will be aware, the Act was introduced in the context of the need to give priority to the stabilization of the public finances and to reflect the substantial benefits generally available to staff under public service pension terms. The provisions of the Act are subject to annual review.