Dáil Éireann Debate, Tuesday - 27 March 2018
221. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform when the restoration of the various payments conceded under FEMPI will take place; and if he will make a statement on the matter. [13541/18]
Amharc ar fhreagraAs the Deputy is aware the unwinding of the emergency FEMPI legislation commenced with the Lansdowne Road Agreement 2016-2018 and will be completed under the Public Service Stability Agreement 2018 -2020.
The Public Service Pay and Pensions Act 2017 sets out a specific schedule of measures and dates in respect of deductions made under the FEMPI Acts including provisions in respect of the implementation of the Public Service Stability Agreement 2018-2020 (PSSA), the introduction of the Additional Superannuation Contribution (ASC) for public servants, elimination of Public Service Pension Reduction (PSPR) and a process of engagement in respect of contractor fees.
The Act gives effect to the pay measures of the PSSA 2018-2020, which provide further pay restoration (that is, in addition to that restoration under the Lansdowne Road Agreement/FEMPI Act 2015). In 2019 the Pension Related Deduction (PRD)will be converted to an Additional Superannuation Contribution (ASC) for public servants.
Unwinding of the PSPR is taking place under FEMPI 2015, with PSPR-affected pensioners getting pension increases via substantial restoration of the PSPR cuts on 1 January 2016, 1 January 2017 and 1 January 2018.
The Public Service Pay and Pensions Act 2017, provides for further significant lessening of the impact of PSPR by way of threshold and rate changes to apply on 1 January 2019 and 1 January 2020. When fully in place from the beginning of 2020, these changes will mean that the vast majority of public service retirees, comprising everyone with occupational pension values up to at least €54,000, will be entirely free of PSPR.
The 2017 Act also provides an alternative statutory basis for the setting and varying of fees for contractors currently subject to the FEMPI legislation. In future the relevant Government Minister, operating with the consent of the Minister for Public Expenditure and Reform will have the statutory power to set and vary the fees paid to contractors for goods and services based on a range of considerations, including affordability and value for money.
