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). This scheduled further lessening of the PSPR impact on pensions means that from 1 January 2019 all pensions up to €39,000 per annum will be exempt from PSPR, removing some 12,000 pensioners from the impact of PSPR.
From 1 January 2020, further PSPR-amelioration will mean that all pensions up to €54,000 per annum will be exempt from PSPR, removing some 10,500 additional pensioners from the impact of PSPR.
When fully in place from the beginning of 2020, these changes will mean that the vast majority of public service retirees - approximately 97% - comprising everyone with occupational pension values up to at least €54,000, will be entirely free of PSPR. For those who retired since end-February 2012 that threshold will be even higher at €60,000.
Section 26 of the Public Service Pay and Pensions Act, 2017 requires the Minister for Public Expenditure and Reform to make an order, no later than 31 December 2020, setting a date for the complete elimination of PSPR from all public service pensions.
This approach can be seen in the context that restoration of the public service pension reductions has proceeded at a faster pace than has applied to the FEMPI pay measures.
This implies that only those pensions whose associated contemporary salaries are, at a minimum, €108,000 (or €120,000 for the post-February 2012 retiree group), will bear any PSPR impact beyond the end of 2020. I can assure the Deputy that the timetable set out in the Act will be complied with.