Financial Emergency Measures in the Public Interest Act 2010

1. Interpretation.

1.— In this Act—

“Act of 2009” means the Financial Emergency Measures in the Public Interest (No. 2) Act 2009;

F1["aggregation of public service pensions" means the aggregation undersubsection (3)ofsection 2orsubsection (5)ofsection 2Aof two or more public service pensions payable to a pensioner for the purposes of the application ofsubsection (1)or(2)ofsection 2orsubsection (3)ofsection 2A, as the case may be, in relation to the pensioner;]

“Civil Service” means the Civil Service of the Government and the Civil Service of the State;

“lump sum” means a lump sum payment or gratuity payable on retirement, at a preserved pension age or on death, under a public service pension scheme;

“Minister” means the Minister for Finance;

“office holder” means—

(a) the President,

(b) the holder of a qualifying office,

(c) a member of either House of the Oireachtas,

(d) a member of the judiciary,

(e) a military judge appointed under Chapter IVC of Part V of the Defence Act 1954 (as amended by the Defence (Amendment) Act 2007),

(f) a member of a local authority within the meaning of the Local Government Act 2001, or

(g) a member of the European Parliament for a constituency in the State, being a member who is in receipt of the salary specified in section 2(2) of the European Parliament (Irish Constituency Members) Act 2009;

“paying authority”, in relation to a public service pension, means the person or body responsible for making payments of the public service pension under the public service pension scheme concerned, or causing such payments to be made, to or in respect of a public servant or former public servant;

F2["pension adjustment order" means an order under—

(a)section 12of theFamily Law Act 1995,

(b)section 17of theFamily Law (Divorce) Act 1996,

(c)section 121of theCivil Partnership and Certain Rights and Obligations of Cohabitants Act 2010, or

(d) section 187 of that Act;]

“pensioner” F3[, subject tosection 2A(inserted by the Financial Emergency Measures in the Public Interest Act 2013),] means a person who—

(a) is entitled to payment of a public service pension under a public service pension scheme,

(b) has a preserved benefit in a public service pension scheme in respect of which the preserved pension age of the person falls on or before the relevant date, or

(c) is a spouse or child of a public servant or former public servant and who becomes entitled to payment of a public service pension as a spouse or child of that public servant or former public servant, as the case may be, under a public service pension scheme at any time after the relevant date but only if that public servant or former public servant, as the case may be, was entitled before that date to payment of a public service pension under a public service pension scheme in respect of service as a public servant from which the entitlement of the spouse or child derives;

“preserved benefit” has the meaning it has in the Public Service Superannuation (Miscellaneous Provisions) Act 2004;

“preserved pension age”, in relation to a preserved benefit in a public service pension scheme, means the age of the public servant or former public servant concerned at which the preserved benefit becomes payable to him or her under the scheme;

“public servant” means a person who is employed by, or who holds any office or other position in, a public service body and includes an office holder;

“public service body” means—

(a) the Civil Service,

(b) the Garda Síochána,

(c) the Permanent Defence Force,

(d) a local authority for the purposes of the Local Government Act 2001,

(e) the National Treasury Management Agency,

(f) the Health Service Executive,

(g) F4[subject tosection 1A,] the Central Bank of Ireland,

F5[(h) an education and training board,]

(i) the Economic and Social Research Institute,

(j) the Institute of Public Administration,

(k) a body (other than a body specified or referred to in the Schedule) established—

(i) by or under an enactment (other than the Companies Acts), or

(ii) under the Companies Acts in pursuance of powers conferred by or under another enactment, and financed wholly or partly by means of moneys provided, or loans made or guaranteed, by a Minister of the Government or the issue of shares held by or on behalf of a Minister of the Government,

in respect of which a public service pension scheme exists or applies or may be made,

(l) a body (other than a body specified or referred to in the Schedule) that is wholly or partly funded directly or indirectly out of moneys provided by the Oireachtas or from the Central Fund or the growing produce of that Fund and in respect of which a public service pension scheme exists or applies or may be made,

(m) any subsidiary of, or company controlled (within the meaning given by section 10 of the Taxes Consolidation Act 1997) by, a body to which paragraph (d), (e), (f), (g), (h), (i), (j), (k)or(l) relates and in respect of which a public service pension scheme exists or applies or may be made;

“public service pension” means a periodic payment of a pension or other benefit by whatever name called, which is not a lump sum, payable to or in respect of a public servant or former public servant under a public service pension scheme;

“public service pension scheme” means an occupational pension scheme or pension arrangement, by whatever name called, for any part of the public service which—

(a) is provided for under—

(i) the Superannuation Acts 1834 to 1963, or

(ii) any other enactment or administrative measure for the like purpose and to the like effect as those Acts, or

(b) is made by a relevant Minister or has been approved or requires the approval or consent, however expressed, of a relevant Minister or the Minister or both of those Ministers of the Government,

F6[but, other than a scheme made in respect of the Central Bank of Ireland, does not include]—

(i) such a scheme or arrangement—

(I) in respect of a body specified or referred to in the Schedule, or

(II) in respect of a body other than a body specified or referred to in the Schedule that is a relevant scheme within the meaning of section 40 of the Pensions Act 1990 and to which Part IV of, and the Third Schedule to, that Act apply, or

(ii) the scheme entitled the Eircom Superannuation Scheme;

“qualifying office” has the same meaning as it has in section 13 (inserted by the Oireachtas (Allowances to Members) and Ministerial, Parliamentary and Judicial Offices (Amendment) Act 1977) of the Ministerial and Parliamentary Offices Act 1938, that is to say—

(a) a ministerial office within the meaning of that section as amended by the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices (Amendment) Act 1973), or

(b) a secretarial office within the meaning of that section as amended by the Oireachtas (Allowances to Members) and Ministerial, Parliamentary and Judicial Offices (Amendment) Act 1983 and the Ministerial, Parliamentary and Judicial Offices and Oireachtas Members (Miscellaneous Provisions) Act 2001);

“relevant date” means the date specified by the Minister in an order made pursuant to section 3(1)(b)(ii) of the Act of 2009;

“relevant Minister”, in relation to a public service pension scheme, means the Minister or Ministers of the Government responsible for the making or approval of, or the giving of consent to, the scheme;

“subsidiary” means a subsidiary within the meaning of the Companies Acts.

1A. F7[Application of Act to Central Bank of Ireland.

1A.—(1) This Act applies in respect of the Central Bank of Ireland only with its consent, given in writing to the Minister by the Governor of that Bank, and with the consent of the Minister for Finance given in writing to the Minister.

(2) Where the consents referred to insubsection (1)have been given to the Minister, the Minister shall cause a notice to that effect to be published inIris Oifigiúiland shall specify in the notice the date from which this Act applies to the persons concerned, which date shall not be earlier than the date on which the last such consent was given.]

2. F8[Reduction in public service pension.

2.—(1) The annualised amount of a public service pension payable in accordance with his or her entitlement to a person who—

(a) is a pensioner, or

(b) becomes a pensioner on or at any time before the relevant date or, in the case of a pensioner falling under paragraph (c) of the definition of“pensioner”insection 1, at any time after that date,

where the annualised amount payable is not more than€34,132 shall be reduced—

(i) with effect on and from 1 January 2016 and subject tosubparagraphs (ii)and(iii), in accordance withTable Ato this subsection,

(ii) with effect on and from 1 January 2017 and subject tosubparagraph (iii), in accordance withTable Bto this subsection, and

(iii) with effect on and from 1 January 2018, in accordance withTable Cto this subsection.

TABLE A

TABLE B

TABLE C

(2) The annualised amount of a public service pension payable in accordance with his or her entitlement to a person who—

(a) is a pensioner, or

(b) becomes a pensioner on or at any time before the relevant date or, in the case of a pensioner falling underparagraph (c)of the definition of“pensioner”insection 1, at any time after that date,

where the annualised amount payable is not more thanF9[€39,000]shall be reduced—

(i) with effect on and from 1 January 2016 and subject toF10[the following subparagraphs], in accordance withTable Ato this subsection,

(ii) with effect on and from 1 January 2017 and subject toF11[the following subparagraphs], in accordance withTable Bto thisF12[subsection,]

(iii) with effect on and from 1 January 2018,F13[and subject to the following subparagraphs]in accordance withTable Cto thisF14[subsection,]

F15[(iv) with effect on and from 1 January 2019 and subject tosubparagraph (v), in accordance withTable Dto this subsection, and

(v) with effect on and from 1 January 2020, in accordance withTable Eto this subsection.]

TABLE A

TABLE B

TABLE C

F16[TABLE D

TABLE E

(3) If—

(a) two or more public service pensions are payable to a person, and

(b) the annualised amount of all such pensions payable in accordance with the person’s entitlements exceeds€32,500,

all such pensions shall be aggregated for the purposes of the application ofsubsections (1)and(2).

(4) (a) Where the application to a pensioner ofsubsection (2)would result in the annualised amount of his or her public service pension being lower than would be the case if he or she had been on a pension specified insubsection (1)and that subsection applied to him or her, thensubsection (2)shall be deemed to operate, in relation to that pensioner, in such a manner and by reference to the provisions ofsubsection (1)(the“relevant provisions”), as will result in his or her pension standing at the highest it would have stood at, as a result of that operation ofsubsection (2)by reference to the relevant provisions, had he or she been on whichever lower amount of pension produces the most beneficial result for him or her in consequence of the relevant provisions.

(b) In this subsection a reference to a subsection or to the provisions of a subsection includes a reference to the Tables in that subsection.

(5) Where a pension adjustment order has been made in relation to a public service pension, the annualised amount of the public service pension shall be reduced under this section before it is paid in accordance with the provisions of the pension adjustment order.

(6) This section has effect notwithstanding—

(a) any provision by or under—

(i) any other enactment,

(ii) any statute or other document to like effect of a university or other third level institution,

(iii) any pension scheme or arrangement,

(iv) any circular or instrument or other document, or

(v) any written agreement or contractual arrangement, or

(b) any verbal agreement, arrangement or understanding or any expectation.

(7) In this section a reference to the annualised amount of a public service pension payable in accordance with a person’s entitlement is a reference to that entitlement not taking into account any reduction imposed by virtue of the operation of this Act whether as enacted or as amended by theFinancial Emergency Measures in the Public Interest Act 2013.]

2A. F17[Persons becoming pensioners after 29 February 2012: reduction in public service pension.

2A.—(1) For the purposes of this section—

(a) the definition of "pensioner" insection 1shall apply with the modification that references to the relevant date in paragraphs (b) and (c) of the definition shall be read as references to 31 August 2014 or such other date as may be specified in accordance withsection 9(1)(b)(ii) of the Financial Emergency Measures in the Public Interest Act 2013;

(b) "relevant (post 29 February 2012) pensioner" means, subject tosubsection (2), a person who became a pensioner after 29 February 2012, or becomes such after the passing of the Financial Emergency Measures in the Public Interest Act 2013, but no later than 31 August 2014 or such other date as may be specified in accordance withsection 9(1)(b)(ii) of the Financial Emergency Measures in the Public Interest Act 2013 and the annual pension of whom (in either case) exceeds€32,500.

(2) Insubsection (1)(b) the words "but no later than 31 August 2014 or such other date as may be specified in accordance withsection 9(1)(b)(ii) of the Financial Emergency Measures in the Public Interest Act 2013" shall be disregarded in the case of a pensioner falling under paragraph (c) of the definition insection 1of "pensioner", as that definition applies by virtue ofsubsection (1)(a).

F18[(3) The annualised amount of a public service pension payable in accordance with his or her entitlement to a person who is a relevant (post 29 February 2012) pensioner shall be reduced—

(a) with effect on and from 1 January 2016 and subject to paragraphs(b)and(c), in accordance withTable Ato this subsection,

(b) with effect on and from 1 January 2017 and subject to paragraph(c), in accordance withTable Bto this subsection, and

(c) with effect on and from 1 January 2018 in accordance withTable Cto this subsection.

TABLE A

TABLE B

TABLE C

(4) Where the application to a pensioner ofsubsection (3)F18[and the appropriate Table]in that subsection would result in the annualised amount of his or her public service pension being reduced to less than€32,500, then that subsection and Table shall only operate to reduce the annualised amount of his or her public service pension to€32,500.

(5) If two or more public service pensions, the annual amount of which, taken together, exceeds€32,500, are payable to a pensioner, all such pensions shall be aggregated for the purposes of applyingsubsection (3)in relation to the pensioner.

(6) Where a pension adjustment order has been made in relation to a public service pension, the annualised amount of the public service pension shall be reduced under this section before it is paid in accordance with the provisions of the pension adjustment.

(7) This section has effect notwithstanding—

(a) any provision by or under—

(i) any other enactment,

(ii) any statute or other document to like effect of a university or other third level institution,

(iii) any pension scheme or arrangement,

(iv) any circular or instrument or other document,

(v) any written agreement or contractual arrangement,

or

(b) any verbal agreement, arrangement or understanding or any expectation.]

3. Calculation of public service pension not affected.

F22[3.—Nothing insection 2or2Ashall affect the calculation of any public service pension entitlement (including an entitlement to a lump sum and an entitlement to periodic payments of pension or other benefits) of a person who—

(a) in the case ofsection 2, is a pensioner or becomes a pensioner on or at any time before the relevant date or, in the case of a pensioner falling underparagraph (c)of the definition of“pensioner”insection 1, at any time after that date; and

(b) in the case ofsection 2A, falls within the definition of "relevant (post 29 February 2012) pensioner" in that section.]

4. Obligation on paying authorities to make payments.

4.—F23[(1) Without prejudice tosubsection (2), reductions of public service pensions undersection 2F24[or2A]shall be paid or disposed of as the Minister may direct and, in particular, the Minister may, for the purposes of the aggregation of public service pensions, direct a paying authority—

(a) to reduce the annualised amount of a public service pension payable by the paying authority to a pensioner by the total amount of the reduction that applies in relation to the pensioner undersection 2F24[or2A]in respect of all public service pensions payable to him or her, or

(b) not to reduce the annualised amount of a public service pension payable by the paying authority to a pensioner in accordance withsection 2F24[or2A].]

(2) Where the amount of any reduction in a public service pension under section 2 F25[or2A] has not been duly paid or disposed of in accordance with a direction of the Minister under subsection (1), the Minister may recover the amount from the paying authority concerned as a simple contract debt in any court of competent jurisdiction.

(3) If a paying authority, having failed or refused to pay or dispose of reductions of public service pensions under section 2 F25[or2A] in accordance with a direction of the Minister under subsection (1), does not do so within 28 days after the service by post by the Minister of a notice on the authority requiring it to do so, the High Court may, on an application made to the Court by the Minister, make an order directing the authority to remit the reductions to the Minister within such time as may be specified in the order.