Dáil Éireann Debate, Tuesday - 25 April 2023
153. Deputy Matt Carthy asked the Tánaiste and Minister for Defence if he is aware that Defence Forces personnel who complete their 21 service and are in receipt of a pension see a 50% reduction in their pension if they enter employment elsewhere in the public sector; his position on such; and if he will make a statement on the matter. [18974/23]
Amharc ar fhreagraThe issue raised by the Deputy relates to the operation of Section 52 of the Public Service Pensions (Single Scheme and other Provisions) Act 2012. This legislation comes under the remit of my colleague the Minister for Public Expenditure and Reform.
The Public Service Pensions (Single Scheme and other Provisions) Act 2012 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 position shall exceed the pensionable remuneration of the old position. It should be noted that it is the pension which is abated and not the salary in the new position.
The measure applies across the public service, including the Defence Forces. It does not apply in relation to employment with the commercial state bodies or where public service pensioners are employed outside the public service.
Pension abatement operates to ensure that pensions payable to public servants do not have the effect of making a pensioner's earnings from their current public service job, plus their existing public service retirement pension, exceed the current equivalent of pensionable salary from their old public service job. The pension payable is reduced as appropriate, that is, abated, to stay within the overall limit.
The actual impact (if any) from the measure on a person’s public service pension will vary from person to person, in some cases there will be full abatement, in some cases only part of the pension is abated, and in some cases there may be no abatement at all.
Where a retired public servant, including a retired member of the Defence Forces, is subject to abatement, the appropriate level of abatement which will apply is calculated on a periodic basis. As stated, the amount of the abatement can range from zero all the way through to full abatement depending on the figures applicable in each individual case and in each separate period (i.e monthly/fortnightly). There is no fixed rule that a reduction of 50% will apply after 21 years’ service, each individual’s earnings and pension in each pay period are assessed individually and the amount of abatement will vary accordingly.
There is provision, under Section 52(4) of the legislation, for a waiver of abatement, in exceptional circumstances, where the position requires a person with particular training and experience and that position cannot be filled other than by the employment of the pensioner. Applications for waivers of abatement must be made by the new employing department or public body rather than by the pension administrator. Such applications are assessed on their own merits on a case by case basis and are subject to the approval of, and can only be granted by, the Minister for Public Expenditure and Reform.
As the Deputy may be aware, the principle of abatement of a public service pension is long-standing within the rules of various public service pension schemes. Abatement policy remains a key component of Public Service pension policy and addresses valid concerns about simultaneous payment of both pension and salary in the Public service. There are no current plans to review pension abatement policy.
