Dáil Éireann Debate, Wednesday - 7 May 2014
102. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform if he will provide in tabular form the gross annual yield since 2011 from the public service pension reduction paid by retired public servants; and if he will make a statement on the matter. [20403/14]
Amharc ar fhreagraSince its introduction on 1 January 2011 as provided for in the Financial Emergency Measures in the Public Interest Act 2010, the Public Service Pension Reduction (PSPR) is estimated to have delivered annual savings to the public finances as follows: 2011 - €100 million; 2012 - €100 million; 2013 - €114 million. These savings constitute estimates of reduced pension payments attributable to PSPR. There are no actual inflows to the public finances or payments by pensioners associated with PSPR, since the measure operates by reducing pension payment rates at source.
While there have been several changes to PSPR rates and rules since 2011, the only such change with significant yield implications occurred last year, when the Financial Emergency Measures in the Public Interest Act 2013 altered the PSPR regime in order to reduce annual public service pensions valued in excess of €32,500. This PSPR alteration, which took effect on 1 July 2013, is the main reason for the increase in the estimated PSPR saving in 2013.
