Reform history

##### 1.. **Interpretation.**

##### 2.. **Reduction in remuneration of public servants who earn more than €65,000.**

##### 3.. **Consequential amendments of Act of 2009.**

##### 4.. **Amendment of definition of “pensioner” in Act of 2010.**

##### 5.. **Reduction in certain public service pensions.**

(3) F1[…]

(4) Where the application to a pensioner of the amendment effected by *subsection (3)*would result in the annualised amount of his or her public service pension being reduced to less than €32,500, then the amendment effected by that subsection shall only operate to reduce the annualised amount of his or her public service pension to €32,500.

(5) The Act of 2010 is amended by inserting the following section after section 2:

“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’ in section 1 shall 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 with *section 9(1)(b)(ii)*of the *Financial Emergency Measures in the Public Interest Act 2013*;

(*b*) ‘relevant (post 29 February 2012) pensioner’ means, subject to subsection (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 with *section 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) In subsection (1)(*b*) the words ‘but no later than 31 August 2014 or such other date as may be specified in accordance with *section 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 in section 1 of ‘pensioner’, as that definition applies by virtue of subsection (1)(*a*).

(3) With effect on and from 1 July 2013, 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 in accordance with the Table in this subsection.

Table

*Annual Pensions of Relevant (Post 29 February 2012) Pensioners*

(4) Where the application to a pensioner of subsection (3)and the 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 applying subsection (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 arrange-ment,

(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.”.

##### 6.. **Consequential amendments of Act of 2010.**

**6**.— (1) The definition of “aggregation of public service pensions” (inserted by the Act of 2012) in section 1 of the Act of 2010 is amended by inserting “or subsection (5) of section 2A” after “subsection (1A) of section 2” and substituting “subsection (1) of section 2 or subsection (3) of section 2A, as the case may be,” for “subsection (1) of that section”.

(2) Section 2 of the Act of 2010 is amended by substituting the following subsection for subsection (1A):

“(1A) 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 applying subsection (1) in relation to the pensioner.”.

(3) The following section is substituted for section 3 of the Act of 2010:

“3.— Nothing in section 2 or 2A shall 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 of section 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 under paragraph (*c*) of the definition of “pensioner” in section 1, at any time after that date; and

(*b*) in the case of section 2A, falls within the definition of ‘relevant (post 29 February 2012) pensioner’ in that section.”.

(4) The following sections of the Act of 2010:

(*a*) section 4 (as amended by the Act of 2012);

(*b*) section 5 (as amended by the Act of 2012);

(*c*) section 6;

(*d*) section 11; and

(*e*) section 12 (as amended by the Act of 2012),

are amended by inserting “or 2A” after “section 2” in each place where it occurs.

##### 7.. **Pay scales: suspension, subject to exceptions, for certain period.**

**7**.— (1) Subject to the provisions of this section and *section 8*, for the F2[period of 5 years] beginning on 1 July 2013—

(*a*) no increment shall be awarded to a public servant; and

(*b*) the operation of the pay scale that applies in respect of a public servant shall stand suspended,

and with the effect that—

(i) the point on that pay scale that shall be applicable in respect of a public servant on F2[1 July 2018] shall be that which was applicable on 1 July 2013 in respect of him or her, and

(ii) the operation of that pay scale, on and from F2[1 July 2018], shall be by reference to service of the public servant on and from F2[1 July 2018], but this is subject to *subsection (2)*.

(2) *Subsection (1)(b)(ii)* does not operate to exclude for the purpose of the operation of the pay scale so much of the service of the public servant, before 1 July 2013, as would have been reckoned for the purpose of the next immediate increment that, but for the suspension of the pay scale by virtue of *subsection (1)*, would have fallen to be awarded to him or her on or after 1 July 2013.

(3) The reference in *subsection (1)* to the pay scale that is applicable in respect of a public servant (being a public servant to whom the amendment hereafter mentioned relates) is a reference to that pay scale as it stands adjusted by virtue or in consequence of the amendment of the Act of 2009 made by *section 2*.

(4) For the avoidance of doubt, s*ubsection (1)* has effect in relation to a pay scale that, in consequence of a public servant’s appointment or promotion to a position after 1 July 2013 (but before 1 July 2016), falls to be applied subsequent to 1 July 2013 as it has effect in relation to a pay scale that applies to a public servant on 1 July 2013, but with the substitution in that subsection for the reference to 1 July 2013 (where it secondly occurs) of a reference to the date of such appointment or promotion of the public servant.

(5) Notwithstanding anything in the preceding subsections of this section, *subsection (1)* shall—

(*a*) apply to a public servant only to the extent specified in the agreement, or

(*b*) apply to a public servant with such modifications as are specified in the agreement,

to whom a collective agreement relates and which agreement—

(i) for the time being stands registered with the Labour Relations Commission for the purposes of this section, and

(ii) provides for the application to such a public servant of *subsection (1)* in the manner described in *paragraph (a)*or *(b)*, as the case may be.

(6) A collective agreement for the purposes of *subsection (5)* may be entered into at any time (whether before or after 1 July 2013).

(7) In this section—

“collective agreement” means an agreement by or on behalf of a public service body on the one hand, and by or on behalf of a body or bodies representative of the public servants to whom the agreement relates on the other hand;

“public servant” has the meaning it has in the Act of 2010.

##### 8.. **Exemption, etc., from operation of section 7 in certain circumstances.**

**8**.— (1) Where in respect of a particular public servant or class or group of public servants the Minister is satisfied that—

(*a*) exceptional circumstances exist (because of some particular aspect or condition of their employment, office or position) in respect of such public servant, class or group and a substantial inequity would thereby arise, or

(*b*) any award under an arbitration agreement would, but for *section 7*, result in the amendment of an applicable pay scale,

and there is in the circumstances a necessity for a distinction from other public servants or from other classes or groups of public servants, as the case may be, then the Minister, if he or she considers it to be just and equitable in all the circumstances to do so, may by direction—

(i) exempt that public servant, class or group from the operation of *section 7*, either entirely or to such extent as the Minister considers appropriate, or

(ii) modify the operation of *section 7* to permit the awarding of increments in such manner as the Minister thinks fit,

and the provisions of *section 7* shall be read subject to any such direction.

(2) In this section “public servant” has the meaning it has in the Act of 2010.

##### 9.. **Certain pension rights not affected.**

**9**.— (1) This section applies to—

(*a*) a person who was at some time before 1 July 2013 a public servant but is on 1 July 2013 in receipt of a pension under a public service pension scheme,

(*b*) a person who was a public servant on 1 July 2013, but ceases to be a public servant on or before—

(i) 31 August 2014, or

(ii) a later date specified by the Minister by order in accordance with *subsection (3)*,

and who, on ceasing to be a public servant, is entitled to payment of a pension under a public service pension scheme in respect of his or her service as a public servant or a person who was at some time before 31 August 2014 or such later date as may be specified under *subparagraph (ii)* a public servant and 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 that date, and

(*c*) a person who becomes entitled to payment of a public service pension as a spouse, civil partner or child of a former public servant to whom *paragraph (a)* or *(b)*applied.

(2) The following shall be disregarded for the purpose of calculating any pension entitlement (including an entitlement to a lump sum and an entitlement to periodic payments of pension) of a person to whom this section applies—

(*a*) the amendment made by *section 2* inserting a section 2A in the Act of 2009,

(*b*) any suspension of the operation of a pay scale by virtue of *subsection (1)* of *section 7*, or

(*c*) the application of *subsection (1)* of *section 7* to a person, in the manner described in *paragraph (a)* or *(b)* of *subsection (5)* of that section, by a collective agreement referred to in that *subsection (5)*.

(3) For the purpose of making an order pursuant to *subsection (1)(b)(ii)*, the Minister shall take into account such legal, superannuation and personnel management issues affecting public service bodies as he or she considers appropriate, and shall consult with any body or other person that he or she considers appropriate.

(4) In this section—

“civil partner” has the meaning it has in the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010;

“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” has the meaning it has in the Act of 2010;

“public service pension scheme” has the meaning it has in the Financial Emergency Measures in the Public Interest Act 2009.

##### 10.. **Amendment of Schedule to Act of 2009.**

**10**.— (1) The Schedule to the Act of 2009 is amended by deleting the following:

“21. Railway Procurement Agency.

22. National Treasury Management Agency.”.

(2) The deletion effected by *subsection (1)*shall not have the effect of causing section 2 of the Act of 2009 to apply to a person who is employed by, or who holds any office or other position in, either of the bodies mentioned in that subsection.

##### 11.. **Amendment of Financial Emergency Measures in the Public Interest Act 2009.**

**11**.— With effect on and from 1 January 2014, section 2 of the Financial Emergency Measures in the Public Interest Act 2009 is amended—

(*a*) in paragraph (*d*) of subsection (3) by substituting “2014” for “2010”,

(*b*) by substituting the following for Table D to subsection (3):

“Table D

”,

(*c*) in subsection (3B) by substituting “2014” for “2012”, and

(*d*) by substituting the following for the Table to subsection (3B):

“Table

##### 12.. **Review of this Act and certain enactments of like character.**

##### 13.. **Short title.**