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.