Public Service Pension Reduction (PSPR) Update

This reduction which applies to certain public service pensions was introduced under the Financial Emergency Measures in the public interest Act 2010 (FEMPI).

The Public Service Pension Reduction is applied to a pensioner’s gross annual rate of pension using a set of rates and income bands.

The PSPR- affected pensions can be grouped into three bands.

Group 1 Pensions awarded in respect of retirement pre- March 2012 with a gross annual value up to €34,132 before the application of PSPR.

Group 2 Pensions awarded in respect of retirement pre- March 2012 with a gross annual greater than  €34,132 before the application of PSPR.

Group 3 Pensions awarded in respect of retirement post-February 2012

Group 3 -Pensions awarded in respect of retirements from 1 March 2012 to 1 April 2019 (the expiry date of the FEMPI 2013 grace period):

Pensions which have a pre-PSPR value in excess of €60,000 are liable to PSPR in 2018. PSPR is imposed on such pensions by reference to the following table:

Changes to PSPR effective from 1 January 2019

Group 1 – Exempt from PSPR.

Group 2 – Pensions awarded in respect of retirements up to end-February 2012:

Pensions which have a pre-PSPR value in excess of €39,000 are liable to PSPR in 2019. PSPR is imposed on such pensions by reference to the following table:

Group 3 – Pensions awarded in respect of retirements from 1 March 2012 to 1 April 2019 (the expiry date of the FEMPI 2013 grace period):

Pensions which have a pre-PSPR value in excess of €60,000 are liable to PSPR in 2019.

Tim O’Meara, Treasurer