The principle of abatement of a public service pension is longstanding within the rules of various public service pension schemes. Abatement is an important aspect of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012 (the Single Scheme Act). Section 52(1) to 52(5) provides for the abatement of a public service pension where a retired public servant, whose pension is in payment, is re-employed in the public service such that no more of the pension when combined with the remuneration in the new job shall exceed the pensionable remuneration of the old job.
Abatement policy remains a key component of the Single Scheme Act and addresses valid concerns about simultaneous payment of both pension and salary in the public service. Consistency in the application of abatement principles across the public service is also important to ensure that the policy is implemented. While the high level operation of abatement is monitored on an ongoing basis, there no current plans to review the application of overall pension abatement policy to specific sectors of the public service.