The principle of pension abatement has existed in the public service for many years, with its application stemming from the relevant pension scheme rules and legislation applicable to a particular public service body or sector. This meant that, historically, pension abatement generally only applied to the pensions of retired public servants who secured another public service appointment in the body/sector from which they originally retired.
Section 52(1) - (5) of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012 (“the 2012 Act”) extended the principle of abatement to retired public servants in receipt of public service pension(s) who secure another public service appointment in any public service body. The 2012 Act does not amend or revoke the abatement provisions for individuals previously subject to abatement where such individuals were re-employed in the same sector prior to 1 November 2012.
Section 52(1)-(5) of the 2012 Act provides that abatement of pension shall apply where a public service pension is payable to a public service pensioner and that pensioner is appointed to a position in the public service in respect of which they are remunerated by a public service body. Abatement, in this instance, is a reduction in the amount of the public service pension payable to that pensioner.
Abatement ensures that the public service pension(s) which the pensioner receives, when combined with their remuneration in their new public service job (including pensionable and non-pensionable emoluments and allowances), does not exceed the ‘relevant former pensionable remuneration’ they would have received had they continued to serve in their former position.
Abatement is applied on a periodic and pro-rata basis. This means that the period over which the remuneration and pension are paid, and the work pattern applicable in the new public service job, are accounted for in determining whether and to what extent abatement will apply.
Abatement applies to the public service pension only and not to the new remuneration.
The 2012 Act provides that the Minister for Public Expenditure, NDP Delivery and Reform may exercise their discretion to grant a waiver of abatement in any particular case, including a case involving a class of person or persons, if the Minister is satisfied that particular conditions are met. It should be noted that abatement waivers are only granted in exceptional circumstances, for a limited period of time and subject to the strict criteria set out in section 52(4) of the 2012 Act. Each waiver application is assessed on its own merits.
More detailed information on the application of abatement, and on the criteria relating to waiver of abatement, is available in Circular 24/2022: ‘Guidance on the application of Abatement of Public Service Occupational Pensions under Section 52 (1) to (5) of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012’, and the accompanying ‘Explanatory Document’.
Circular 24/2022: Guidance on the application of Abatement of Public Service Occupational Pensions under Section 52 (1) to (5) of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012
Circular 24/2022: Explanatory Document
Public Service Pensions (Single Scheme and Other Provisions) Act 2012
