Seán Fleming
Ceist:91. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform the yield from the pension-related deduction in 2014; and if he will make a statement on the matter. [15086/15]
Amharc ar fhreagraThursday, 16 April 2015
Ceisteanna (91)
Freagraí scríofa
The public service Pension-related Deduction (PRD), which was introduced in March 2009 under the Financial Emergency Measures in the Public Interest Act 2009 is provisionally estimated to have yielded €891 million in 2014. This estimated total does not include non-Exchequer PRD receipts, as arising for example in the local government sector.
PRD is a progressively structured reduction to the pay of pensionable public servants with staff on higher pay rates impacted more adversely than those on lower rates. Given the significant yield each year, PRD is a critical component of the public service pay and pension measures adopted as part of our national fiscal consolidation. However it should be noted that a start has already been made on ameliorating the impact of PRD on public servants. As legislated for in the Financial Emergency Measures in the Public Interest Act 2013, and as provided for in the Haddington Road Agreement, the rate of PRD on the €15,000 to €20,000 band of pay received in a year fell from 5% to 2.5% on 1 January 2014. This cut is 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.