THE BILL giving effect to the public sector pension levy and other cost-saving measures was published yesterday by Minister for Finance Brian Lenihan and will be debated in the Dáil today.
The Financial Emergency Measures in the Public Interest Bill 2009 contains a number of cost-cutting measures designed to save the exchequer €2 billion in a full year.
“The Bill gives statutory provision to a number of the measures decided by the Government and announced by the Taoiseach on February 3rd last to stabilise the public finances and achieve expenditure adjustments of €2 billion in 2009,” Mr Lenihan said in a statement.
The key elements of the Bill are a pension-related deduction for the public service, a reduction in professional fees paid by the State, changes in the early childcare supplement, and the deferral of certain payments under the Farm Waste Management Scheme.
Mr Lenihan said that Ireland was facing major economic and budgetary challenges which must be dealt with and the Government recognised that the future prosperity of the country would be determined by the actions taken now.
“The Government has a clear strategy for the future development of the economy and for dealing with the budgetary shortfalls which have emerged.
“The measures contained in the Bill are an important element of this strategy, achieving savings from public service pay, from the fees paid by the State to professionals, from the farming sector, and in respect of the early childcare supplement,” said the Minister.
The Bill specifies that the pensions levy will apply at the rate of 3 per cent for the first €15,000 of remuneration, 6 per cent for the next €5,000 and 10 per cent on all remuneration above that figure.
It will apply to those who work in the Civil Service, An Garda Síochána, the Defence Forces, local authorities and all HSE employees including nurses.
Teachers and local government employees will also pay the levy.
TDs, Senators and MEPs are included, as are office holders such as Ministers, the Attorney General, the Ceann Comhairle and Leas Ceann Comhairle of the Dáil, and Ministers of State.
Under the Constitution, the President and members of the judiciary cannot be included in this measure, according to the Department of Finance.
Remuneration is defined in the Bill as total earnings, including allowances, overtime or any other like payment, payable by or on behalf of a public service body to a public servant for his or her services as a public servant.
The Minister has power to exempt certain groups from the deduction. He can also modify the extent of the deduction if he is satisfied they are materially distinguished by some particular aspect of their employment terms from others subject to the deduction.
The Bill also includes a provision that the Minister for Health may, by regulation, fix the payment or rate of payment to be made to health professionals for services which they render to a health body.
The Bill specifies that the Minister for Health must engage in consultations on this issue and it allows any health professional who does not wish to continue to provide services to give notice of withdrawal.
The deferral of certain payments under the Farm Waste Management Scheme is also provided for in the Bill.
It also deals with the changes to the early childcare supplement, involving a reduction in the age limit for eligibility from six to five years.
The amount payable per child is being reduced from €1,104 to €996, to be paid in monthly instalments of €83. The savings resulting from these changes will amount to about €77 million in a full year.
Pension levy: politicians and judges
Salaries of elected representatives after pension levy deduction on March 1st this year (previous figure in brackets)
TD
€91,421.61 (€100,190.68)
Senator
€64,370.22 (€70,133.58)
Minister of State and Leas-Cheann Comhairle
€126,589.52 (€139,266.14)
Attorney General
€183,658.42 (€202,676.02)
Minister and Ceann Comhairle
€183,658.42 (€202,676.02)
Tánaiste
€199,962.87 (€220,792.07)
Taoiseach
€232,571.76 (€257,024.18)
The President'ssalary as at October 2008, when she indicated that she would voluntarily surrender 10 per cent, was €325,508. Incorporating the surrender, this is now €292,957. The President is not subject to the levy.
Judges’ salaries (not subject to Levy)
Chief Justice€295,916
President, High Court€274,779
Judge, Supreme Court€257,872
President, Circuit Court€249,418
Judge, High Court€243,080
President, District Court€183,894
Judge, Circuit Court€177,554
Judge, District Court€147,961
