Information Circular No 34/2011 – New Public Service Pension Scheme

By Industrial Relations Officer

The Department of Public Expenditure and Reform has recently published new public service pension legislation – Public Service Pensions (Single Scheme) and Remuneration Bill 2011.

New Entrants:                         The Public Service Pensions (Single Scheme) and Remuneration Bill 2011 will reduce the future cost of pensions by introducing a new career averaging system for all new entrants to the Permanent Defence Force (PDF).

In relation to contributions, the proposed pension scheme introduces a new contribution rate of 7.5% for all future Enlisted Personnel recruited into the PDF. 


Serving Public Servants:        The recently published public service pension legislation proposes to change the method of indexing of pensions from the current parity link with existing staff to linking future changes to changes in the Consumer Price Index (CPI).  However, under theCrokePark agreement the indexation move toCPI will not take place until 2014.

The new pension’s bill also provides for the abatement* of a public service pension that is payable to a person who takes up public service employment.

*Abatement is the practice of reducing the rate of occupational pension to take account of public service salary payable on employment subsequent to retirement, or other occupational or state pension entitlements.


PDFORRA have forwarded their observations on the new pension’s bill to the Department of Defence.  The new pension’s legislation is currently passing through the houses of the Oireacthas.

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