As the Deputy will be aware, my Department is responsible for overall policy relating to pension abatement. The principle of abatement of a public service pension is longstanding within the rules of various public service pension schemes, and pension abatement is an important aspect of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012 (the “2012 Act”).
Section 52 (1) - (5) of the 2012 Act provides for the abatement of public service pensions. In the context of public service pensions, abatement is the suspension or reduction in an individual’s public service pension(s) where that individual is re-employed in the public service. This applies to all public servants, including former uniformed service personnel.
Abatement of a public service pension where a retired public servant, whose pension is in payment, is re-employed in the public service ensures that no more of the pension when combined with the remuneration in the new position shall exceed the pensionable remuneration of the old position. Abatement policy is a key component of public service pension policy and addresses valid concerns about simultaneous payment of both pension and salary in the public service. It should be noted that it is the pension which is abated and not the salary in the new position.
There are no plans to review the application of Section 52 (1) - (5). Circular 24/2022 provides guidance on the operation of abatement.
Question No. 90 answered with Question No. 52.