Financial Emergency Measures in the Public Interest Act 2010
Acts of the Oireachtas
Source: Acts of the Oireachtas

num: 1
paragraphs: — In this Act—
“Act of 2009” means the Financial Emergency Measures in the Public Interest (No. 2) Act 2009 ;
“Civil Service” means the Civil Service of the Government and the Civil Service of the State;
“lump sum” means a lump sum payment or gratuity payable on retirement, at a preserved pension age or on death, under a public service pension scheme;
“Minister” means the Minister for Finance;
“office holder” means—
(a) the President,
(b) the holder of a qualifying office,
(c) a member of either House of the Oireachtas,
(d) a member of the judiciary,
(e) a military judge appointed under Chapter IVC of Part V of the Defence Act 1954 (as amended by the Defence (Amendment) Act 2007 ),
(f) a member of a local authority within the meaning of the Local Government Act 2001 , or
(g) a member of the European Parliament for a constituency in the State, being a member who is in receipt of the salary specified in section 2 (2) of the European Parliament (Irish Constituency Members) Act 2009 ;
“paying authority”, in relation to a public service pension, means the person or body responsible for making payments of the public service pension under the public service pension scheme concerned, or causing such payments to be made, to or in respect of a public servant or former public servant;
“pensioner” means a person who—
(a) is entitled to payment of a public service pension under a public service pension scheme,
(b) has a preserved benefit in a public service pension scheme in respect of which the preserved pension age of the person falls on or before the relevant date, or
(c) is a spouse or child of a public servant or former public servant and who becomes entitled to payment of a public service pension as a spouse or child of that public servant or former public servant, as the case may be, under a public service pension scheme at any time after the relevant date but only if that public servant or former public servant, as the case may be, was entitled before that date to payment of a public service pension under a public service pension scheme in respect of service as a public servant from which the entitlement of the spouse or child derives;
“preserved benefit” has the meaning it has in the Public Service Superannuation (Miscellaneous Provisions) Act 2004 ;
“preserved pension age”, in relation to a preserved benefit in a public service pension scheme, means the age of the public servant or former public servant concerned at which the preserved benefit becomes payable to him or her under the scheme;
“public servant” means a person who is employed by, or who holds any office or other position in, a public service body and includes an office holder;
“public service body” means—
(a) the Civil Service,
(b) the Garda SÃ­ochÃ¡na,
(c) the Permanent Defence Force,
(d) a local authority for the purposes of the Local Government Act 2001 ,
(e) the National Treasury Management Agency,
(f) the Health Service Executive,
(g) the Central Bank of Ireland,
(h) a vocational education committee established under section 7 of the Vocational Education Act 1930 ,
(i) the Economic and Social Research Institute,
(j) the Institute of Public Administration,
num: 2
paragraphs: — (1) With effect on and from 1 January 2011, the annualised amount of a public service pension payable in accordance with his or her entitlement to a person who—
(a) is a pensioner, or
(b) becomes a pensioner on or at any time before the relevant date or, in the case of a pensioner falling under paragraph (c) of the definition of “pensioner” in section 1 , at any time after that date,
shall be reduced in accordance with the Table in this subsection.
TABLE
Annualised amount of public service pension
Reduction
Up to €12,000
Exempt
Any amount over €12,000 but not over €24,000
6 per cent
Any amount over €24,000 but not over €60,000
9 per cent
Any amount over €60,000
12 per cent
(2) This section has effect notwithstanding—
(a) any provision by or under—
(i) any other enactment,
(ii) any statute or other document to like effect of a university or other third level institution,
(iii) any pension scheme or arrangement,
(iv) any circular or instrument or other document,
(v) any written agreement or contractual arrangement, or
(b) any verbal agreement, arrangement or understanding or any expectation.
num: 3
paragraphs: — Nothing in section 2 shall affect the calculation of any public service pension entitlement (including an entitlement to a lump sum and an entitlement to periodic payments of pension or other benefits) of a person who is a pensioner or becomes a pensioner on or at any time before the relevant date or, in the case of a pensioner falling under paragraph (c) of the definition of “pensioner” in section 1 , at any time after that date.
num: 4
paragraphs: — (1) Without prejudice to subsection (2), reductions of public service pensions under section 2 shall be paid or disposed of as the Minister may direct.
(2) Where the amount of any reduction in a public service pension under section 2 has not been duly paid or disposed of in accordance with a direction of the Minister under subsection (1), the Minister may recover the amount from the paying authority concerned as a simple contract debt in any court of competent jurisdiction.
(3) If a paying authority, having failed or refused to pay or dispose of reductions of public service pensions under section 2 in accordance with a direction of the Minister under subsection (1), does not do so within 28 days after the service by post by the Minister of a notice on the authority requiring it to do so, the High Court may, on an application made to the Court by the Minister, make an order directing the authority to remit the reductions to the Minister within such time as may be specified in the order.
(4) An order of the High Court under subsection (3) may contain such terms and conditions (if any) as to the payment of costs as the Court considers appropriate.
num: 5
paragraphs: — (1) Where the amount of a public service pension is reduced by section 2 —
(a) a pensioner is not entitled to receive an amount of public service pension greater than the amount so reduced, and
(b) no paying authority is entitled to pay an amount of public service pension to the pensioner greater than the amount so reduced.
(2) If a paying authority pays to a pensioner an amount of public service pension greater than the amount reduced under section 2 , then—
(a) the pensioner shall have no legal entitlement to the overpayment, and
(b) the paying authority shall recover the amount of the overpayment from the pensioner, either directly or by a deduction taken from the public service pension subsequently payable to that pensioner or otherwise.
(3) Subsection (2) shall not be taken as limiting the liability under statute of any person to account for such overpayment.
(4) Where an overpayment of an amount to which subsection (2) relates has not been recovered by the paying authority concerned, the Minister may direct in writing that authority to recover, by a specified date, the amount in accordance with subsection (2)(b) and, where that authority fails or refuses to so recover the amount, the Minister may deduct the amount from any grant or vote, or other payment, to that authority out of moneys provided directly or indirectly by the Oireachtas or from the Central Fund or the growing produce of that Fund.
num: 6
paragraphs: — Where the Minister is satisfied that exceptional circumstances exist (because of some particular aspect or condition relating to the public service pension or the public service pension scheme concerned, including the funding of that pension or scheme) in respect of a particular class or group of pensioners and those circumstances materially distinguish that class or group from other classes or groups of pensioners to which section 2 applies, then, the Minister, if he or she considers it to be just and equitable in all the circumstances to do so, may by direction—
(a) exempt that class or group from the operation of section 2 , either entirely or to such extent as the Minister considers appropriate, or
(b) modify the operation of section 2 to reduce their public service pensions in such manner as the Minister thinks fit, having regard to the nature and degree of the financial burden that would otherwise be borne by that class or group,
and this Act, and any regulations made under this Act, shall be read subject to any such direction.
num: 7
paragraphs: — (1) Section 2 of the Act of 2009 is amended by the insertion of the following subsection after subsection (2):
“(2A) The provisions of subsections (1) and (2) and Table 1 to this section shall, for the purpose of the application of those provisions to the remuneration of the holders of certain offices specified in this subsection, have effect on and from 1 January 2011 as if the reductions provided for in subsection (2) and that Table were as follows and a relevant provision that fixes the remuneration, or any part of the remuneration, of the holders of any of those offices shall be taken to have been so amended with effect on and from that date:
(a) in the case of the Taoiseach, a 25 per cent reduction of remuneration in lieu of a reduction of 20 per cent of remuneration;
(b) in the case of the TÃ¡naiste, a 19.5 per cent reduction of remuneration in lieu of a reduction of 15 per cent of remuneration; and
(c) in the case of a Minister of the Government, a 19.5 per cent reduction of remuneration in lieu of a reduction of 15 per cent of remuneration.”.
(2) The reference in Table 1 to section 2 of the Act of 2009 to “Minister” shall be construed as being, and always to have been, a reference to a Minister of the Government.
num: 8
paragraphs: — Section 3 of the Act of 2009 is amended—
(a) in subsection (1)(a), by the substitution of “in receipt of a pension under a public service pension scheme” for “in receipt of a pension or has a preserved benefit in a public service pension scheme, and”,
(b) in subsection (1)(b), by the substitution of the following for subparagraph (ii):
“(ii) a later date specified by the Minister by order in accordance with subsection (3),
or a person who was at some time before the date specified under subparagraph (ii) a public servant and has a preserved benefit in a public service pension scheme in respect of which the preserved pension age of the person falls on or before that date, and”,
(c) in subsection (1), by the addition of the following paragraph:
“(c) a person who is a spouse or child of a public servant or former public servant and who becomes entitled to payment of a public service pension as a spouse or child of that public servant or former public servant, as the case may be, under a public service pension scheme at any time after the date specified under paragraph (b)(ii) but only if that public servant or former public servant, as the case may be, was entitled before that date to payment of a public service pension under a public service pension scheme in respect of service as a public servant from which the entitlement of the spouse or child derives.”, and
(d) by the addition of the following subsection:
“(4) In this section—
‘preserved benefit’ has the meaning it has in the Public Service Superannuation (Miscellaneous Provisions) Act 2004 ;
‘preserved pension age’, in relation to a preserved benefit in a public service pension scheme, means the age of the public servant or former public servant concerned at which the preserved benefit becomes payable to him or her under the scheme.”.
num: 9
paragraphs: — The Act of 2009 is amended by the insertion of the following section after section 9:
“Restriction on application of direction given by Minister.
9A.— The direction given by the Minister under section 6 in respect of a particular class or group of public servants to whom Table 2 to section 2 applies shall apply only in relation to the remuneration payable to that class or group and shall not apply for the purposes of calculating the pension entitlements (including an entitlement to a lump sum and an entitlement to periodic payments of pension or other benefits) of members of that class or group at any time after the date specified in an order made under section 3(1)(b)(ii).”.
num: 10
paragraphs: — Before 30 June in 2012 and every year after 2012, the Minister shall—
(a) carry out a review of the operation, effectiveness and impact of this Act (other than section 13 ), having regard to the overall economic conditions in the State and national competitiveness,
(b) consider whether or not any of the provisions of this Act (other than section 13 ) continue to be necessary having regard to the purposes of this Act, the revenues of the State and State commitments in respect of public service pensions,
(c) make such findings as he or she thinks appropriate consequent on the review and consideration, and
(d) cause a written report of his or her findings resulting from the review and consideration to be prepared and laid before each House of the Oireachtas.
num: 11
paragraphs: — (1) The Minister may make regulations for the purposes of this Act or in consequence of any of its provisions or for the purpose of enabling any provision to have full effect.
(2) Without prejudice to the generality of subsection (1), the Minister may make regulations for the purposes of the calculation, making, collection, disposal and recovery of the reductions of public service pensions under section 2 .
(3) Regulations made by the Minister under this section may contain such incidental, supplementary and consequential provisions as appear to the Minister to be necessary or expedient for the purposes of the regulations.
(4) Regulations under this section shall be laid before each House of the Oireachtas as soon as may be after they are made and if a resolution annulling the regulations is passed by either such House within the next 21 days on which that House has sat after the regulations are laid before it, the regulations shall be annulled accordingly but without prejudice to the validity of anything previously done under the regulations.
num: 12
paragraphs: — Where a doubt, question or dispute arises in the operation of this Act in respect of whether a person is or is not a person whose public service pension is subject to section 2 , then such doubt, question or dispute shall—
(a) be submitted to the Minister by the paying authority in relation to the public service pension concerned, and
(b) be determined by the Minister after consulting such persons (if any) as the Minister considers appropriate in the circumstances,
and the determination of the doubt, question or dispute by the Minister shall be final.
num: 13
paragraphs: — The National Minimum Wage Act 2000 is amended—
(a) by the substitution of the following section for section 11:
“11.— (1) The Minister shall, by order, declare a national minimum hourly rate of pay for the purposes of this Act of €7.65.
(2) The Minister may, by order, amend or revoke an order under this section (including an order under this subsection).
(3) The Minister may make an order under subsection (2) whether or not a recommendation under section 12 or 13 has been made.
(4) The Minister shall, for the purpose of deciding whether or not to make an order under subsection (2), take account of the following matters:
(a) changes in earnings during the period since the most recent making of an order under this section;
(b) changes in currency exchange rates during that period;
(c) whether during that period—
(i) unemployment has been increasing or decreasing, and
(ii) employment has been increasing or decreasing;
(d) the likely effect that the proposed order will have on—
(i) levels of employment and unemployment,
(ii) the cost of living, and
(iii) national competitiveness; and
(e) where a recommendation has been made under section 12 or 13, that recommendation.
(5) The national minimum hourly rate of pay declared by order under this section may include an allowance in respect of board and lodgings, board only or lodgings only at such rates as are specified in the order.”,
(b) by the substitution, in subsection (2) of section 12, of “(4)” for “(1)”,
(c) in section 13, by—
(i) the substitution, in subsection (5), of the words “matters specified in paragraphs (a), (b), (c) and (d) of subsection (4) of section 11.” for “following matters:”,
(ii) the deletion, in that subsection, of paragraphs (a), (b) and (c),
(iii) the insertion of the following subsection:
“(5A) A recommendation under subsection (4) or (5) shall not be made after the expiration of 13 weeks from the making of the request under subsection (3).”, and
(iv) the substitution, in subsection (7), of “section 11(4)” for “section 11(1)”.
num: 14
paragraphs: — This Act may be cited as the Financial Emergency Measures in the Public Interest Act 2010.