The Pension-Related Deduction (PRD) was provided for in law under the Financial Emergency Measures in the Public Interest Act 2009, as amended (the “Act”). PRD was operational from 1 March 2009 to 31 December 2018. It was replaced by the Additional Superannuation Contribution (ASC) with effect from 1 January 2019. PRD was a deduction from the salary of Public Servants who -
1. are members of a Public Service pension scheme,
2. have an entitlement to a Public Service pension benefit, preserved or in payment, or
3. who receive/have received a payment-in-lieu of such a pension.
PRD confers no additional pension benefit and is not linked to the pension contribution an individual is required to make.
PRD was chargeable on all taxable remuneration as defined in the Act as follows:
“remuneration” means emoluments to which Chapter 4 of Part 42 of the Taxes Consolidation Act 1997 applies or is applied and payable by or on behalf of a public service body to a public servant for his or her services as a public servant;
As overtime is deemed to be taxable remuneration it was subject to PRD. There is no provision in the legislation to exempt overtime from PRD. Furthermore, there is no proposal to retrospectively provide for such an exemption.
It should be noted that the ASC, which replaces PRD, is charged only on pensionable remuneration and therefore is not chargeable on non-pensionable overtime.