RTAI Fact Sheet
PUBLIC SERVICE PENSION REDUCTION
What rate of Public Service Pension Reduction (PSPR) applies to my pension?
The rate of PSPR deducted from pension is not the same for every retired public servant. Two factors determine which particular rate applies: when did you retire and how much is your gross annual pension?
When did you retire?
If you retired on or before 29 Feb 2012, either the rates @ A or B will apply.
If you retired from 1 March 2012, either C or D will apply
I retired before 29 February 2012, which of A or B applies to me
If you pension is up to €34,132 per annum the rates @ A apply.
If your pension is over €34,132 per annum the rates @ B apply.
I retired after 1 March 2012, which of C or D applies?
If you pension is up to €32,500 per annum C applies [No PSPR]
If your pension is over €32,500 per annum the rates @ D apply.
Why are the rates lower for those who retired from 1 March 2012 onwards?
Though teachers had a salary cut on 1 Jan 2010 teachers who retired on or before 29 Feb 2012 [the grace period] retired on their ‘pre pay-cut salary’ i.e. their pension and lumpsum was calculated on their previous salary rather than on their reduced salary.
Teachers who retired since 1 March 2012 [after the grace period] have pension and lumpsum calculated on their actual salary at the time of retirement.
Retired prior to 1 March 2012
(A) Treatment of pension up to €34,132 per annum
| PSPR rates @ 31 December 2015 | Up to 12K | Exempt |
| 12K to 24K | 6% | |
| 24K to €34,132 | 9% |
RPSP Reversal
| (a) | 1 Jan 2016 | Up to 18,700K | Exempt |
| 18,700K to 24K | 6% | ||
| 24K to €34,132 | 9% | ||
| (b) | 1 Jan 2017 | Up to 26K | Exempt |
| 26K to €34,132 | 9% | ||
| (c) | 1 Jan 2018 | Up to €34,132 | Exempt |
(B) Treatment of pensions over €34,132 per annum
| PSPR rates @ 31 December 2015 |
Up to 12K | Exempt |
| 12K to 24K | 8% | |
| 24K to €60k | 12% |
RPSP Reversal
| (a) | 1 Jan 2016 | Up to 17K | Exempt |
| 17K to 24K | 8% | ||
| 24K to 60K | 12% | ||
| (b) | 1 Jan 2017 | Up to 22K | Exempt |
| 22K to 24K | 3% | ||
| 24k to 60K | 12% | ||
| (c) | 1 Jan 2018 | Up to 30K | Exempt |
| 30K to 60K | 12% |
[*Higher rates apply to pensions over €60k (17%) and for pensions over €100k (28%) but these are not shown]
Retired from 1 March 2012
(C) Treatment of pension under €32,500 per annum
There is no deduction for PSPR for teachers who retired from 1 March 2012 onwards for pensions up to €32,500.
Retired from 1 March 2012
(D) Treatment of pension over €32,500 per annum
| PSPR rates @ 31 December 2015 |
Up to 12K | Exempt |
| 12K to 24K | 2% | |
| 24K to €60k | 3% |
RPSP Reversal
| (a) | 1 Jan 2016 | Up to 29,300K | Exempt |
| 29,300K to 60K | 3% | ||
| (b) | 1 Jan 2017 | Up to 39K | Exempt |
| 39K to 60K | 2% | ||
| (c) | 1 Jan 2018 | Up to €60K | Exempt |
[*Higher rates apply to pensions over €60k (5%) and for pensions over €100k (8%) but these are not shown]