Public Service Pension Reduction (PSPR)
The 3rd phase of the unwinding of the reduction to pensions in payment is effective from 1 January 2018. The DES is currently working to apply the reduced rates to the relevant pensions. However, the reduction is not reflected in the pension payment issued on Thurs 11 Jan.
The DES intended to have this work complete for the pension issue of 25 Jan next which will also include retrospection. [Note 1]
Details of the changes to the PSPR rates are carried on page 5 of the last Comhnasc and can be accessed under the pensions>pensions restoration tab on this website.
The DES is giving priority to implementing the payroll adjustments and will not be dealing with individual queries in relation to PSPR in the interim.
Universal Social Charge (USC)
Budget 2018 provided for a further reduction in the USC. Though the overall cost of this reduction amounts to €177 million per annum the reduction for each individual is very modest!
This reduction is reflected in the pension payment of Thurs 11 Jan. [Note 2]
Details of the changes to the USC rates are carried on page 9 of the last
Budget 2018 also provided for an increase in the standard rate income tax band of €750 from 1 January.
This change is reflected in the pension payment of Thurs 11 Jan. [Note 2]
In the case of a single person the standard rate band width is increased from €33,800 to €34,550; and in the case of a couple with one income from €42,800 to €43,550.
See www.revenue.ie for full schedule.
Note 1: See: www.education.gov.ie: Education Staff/Pensions/Recent announcement.
Note 2: The pension payment issued on Thurs 11 Jan covers the fortnight 26 Dec ’17 to 8 Jan ’18. Accordingly, the full impact of the changes to USC & Tax are not reflected in this payment.