The 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.
Under the 2012 Act, the principle of abatement applies in cases where a public service pensioner is appointed to a public service position on or after 1 November 2012.
The measure applies across all of 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.
Operation of the system of abatement depends upon notification by the second/new Public Service Body and/or the individual in question to the pension paying authority that the person has taken up employment again within the public sector. In the case above (details supplied) the person started work with a second public sector body in September 2017. The Department of Defence was not notified of this until November 2025 and was therefore unaware until that point that the pension required to be abated. Once the Department of Defence became aware of the position the person in question was contacted and informed of the situation and abatement of their pension immediately commenced in accordance with the legislative requirements. Unfortunately, by that stage, a significant pension overpayment had accumulated in respect of his pension not having been abated on foot of his employment with the second public service body from Sept 2017 to November 2025.
The Department of Defence has an accounting responsibility to recover any loss to public funds and is not in a position to write off the debt in question as to do so would contravene government accounting rules. It would also contravene the relevant public sector pensions legislation which provides that abatement be applied in such cases. In addition, in the interests of equity, it is essential that the abatement policy is applied consistently in the treatment of individuals impacted by it.
The Department of Defence is nonetheless agreeable to negotiating a reasonable repayment plan with the person in question, taking into account the circumstances of this case and the potential hardship which repayment of this substantial debt could cause.
I recognise that the second public service body in this case also falls under my remit. I will also ask my officials in that Department to examine the circumstances of this case in full.
It should be noted that 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. My understanding is that no such application was made, by the other employing Department, or approved in respect of the case of the individual referred to.
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.