Information Circular No 30/2016: Lansdowne Road Agreement and Pension Related Deduction Thresholds

By Industrial Relations Officer

Members and Committees have sought clarification regarding the increased exemption thresholds below which the 0% and 10% rates of Pension Related Deduction (PRD) are paid under the Lansdowne Rd Agreement (LRA) for the years 2016 and 2017.

The fact that PDFORRA has not agreed to sign up to the LRA but still operates within it has not prevented the benefits of greater exemptions from the PRD applying to members. However, the membership remains under threat of an increment freeze because of the foregoing position which has been adopted to advance the pay position of 2013 entrant Privates. The position on the adjustment to the PRD exemption threshold is as follows:

  • In 2015, the PRD rate was 0% on income up to €17,500; 2.5% on income between €17,500 and €20,000 – and 10% on income between €20,000 and €60,000.
  • From 1st January 2016, the PRD rate of 0% on income was increased to €26,083 and 10% on income between €26,083 and €60,000.
  • From 1st January 2017, the PRD rate 0% on income will increase further to €28,750 and 10% on income between €28,750 and €60,000. This will reduce the PRD charge by approximately €260 for the 2017 tax year – in the case of those earning €28,750 or over.

While these adjustments have been and will be implemented and received by members, the same will not apply to the pay rises scheduled under the LRA until PDFORRA signs-up to the Agreement. A separate Information Circular will be issued on the small pay rises provided under the LRA.

PDFORRA intends to ballot the membership on the terms of LRA when it has secured an acceptable clarification of the pay levels that are to apply to 2013 entrant Privates and expects to reach such an acceptable resolution shortly. The solidarity and support of the wider membership for this group and its legitimate demands is important to a successful outcome and is appreciated.


Issued on the 20/12/2016

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