Dáil Éireann Debate, Wednesday - 9 October 2013
10. Deputy Seán Kyne asked the Minister for Public Expenditure and Reform with regard to the Haddington Road agreement, if the reduction in the pension related deduction, currently at 5% of the salary portion €15,000 to €19,999 and due to be reduced to 2.5%, has been implemented; and if not, if he will indicate the timeframe for the introduction of this measure. [42509/13]
Amharc ar fhreagraAs legislated for in the Financial Emergency Measures in the Public Interest Act 2013, and as noted in the Haddington Road agreement, the rate of pension related deduction on the €15,000 to €20,000 band of pay received in a year will fall from 5% to 2.5% on 1 January 2014. This rate cut will be worth €125 annually in gross terms to most public servants, with those taxed at the standard rate enjoying the greater gain in terms of take-home pay boost.
I thank the Minister for that clarification. I have been contacted by individuals who believed that this measure would be in effect from 1 July. I will revert to them on the matter. I also acknowledge the Minister's work on the Haddington Road agreement, which signifies the solidarity of public sector workers in restoring our public finances.
I thank the Deputy.
