Public Sector Pensions Levy

Dáil Éireann Debate, Tuesday - 5 March 2019

Tuesday, 5 March 2019

Ceisteanna (149)

Michael McGrath

Ceist:

149. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the number of persons paying the pension-related deduction in each year since it was introduced; the revenue received in each year since it was introduced; the number and references to each circular relating to the deduction; the number of pensioners per annum who have received refunds due to the fact they were overcharged since reductions were announced; the value in monetary terms of refunds paid each year; the processes in place to ensure that pensioners are paying the correct additional superannuation contribution level; and if he will make a statement on the matter. [10270/19]

Freagraí scríofa

Minister for Public Expenditure and Reform

The Pension Related Deduction (PRD) was introduced in March 2009 under the Financial Emergency Measures in the Public Interest Act 2009 (as amended) and was a temporary deduction from the salary of any serving public service employee having a public service pension entitlement as defined in the legislation.  PRD did not apply to pensioners and therefore should not be applied to pension payments.  PRD has now been replaced by the Additional Superannuation Contribution (ASC) as provided under the Public Service Pay and Pensions Act 2017 with effect from 1 January 2019.  ASC is a permanent contribution towards the cost of public service superannuation.  As with PRD, ASC only applies to serving public service employees who have a public service pension entitlement.  It does not apply to pensioners.  PRD was, and ASC is, deducted at source from employee remuneration at payroll level and, deductions, refunds or underpayments where they arise are managed through the relevant payroll for the individual concerned.

All public service employees who have a public service pension entitlement were liable for PRD and are now liable for ASC with those earning less than €32,000 in the case of members of a "standard accrual" pension scheme or the Single Scheme and €28,750 in the case of members of a "fast accrual" pension scheme being exempt from ASC.

It should be noted that PRD and ASC are different to the Public Service Pension Reduction (PSPR) which impacted on pensioners.  PSPR was introduced under the Financial Emergency Measures in the Public Interest Act 2010 with effect from 1 January 2011 and imposed reductions to pensions at levels which varied according to the date of retirement and the pay cut already suffered.

Please see PRD receipts detailed on a yearly basis since its introduction in 2009. 

	PRD Yield
Year	Amount (€ millions)
2009	€837.419
2010	€948.605
2011	€960.224
2012	€934.739
2013	€925.986
2014	€877.800
2015	€875.985
2016	€705.998
2017	€478.617
2018	€522.499

Note 1: The years 2011 to 2016 do not include Local Government PRD yields

Note 2: The years 2017 & 2018 do not include the HSE PRD yield.  These figures will be provided directly to Deputy McGrath by the Department of Health.