The principle of abatement of a public service pension is longstanding within the rules of various public service pension schemes and is an important aspect of Public Service Pensions.
Where previously abatement applied to the pension of a retired public servant returning to work in the sector from which they retired, the Public Service Pensions (Single Scheme and Other Provisions) Act 2012 (the “2012 Act”) extended abatement to retired public servants returning to any part of the public service.
The 2012 Act 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.
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.