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Pension Related Deduction (PRD)


The Pension Related Deduction (PRD), sometimes referred to as the ‘Public Service Pension Levy’, was introduced on 1 March 2009 under the Financial Emergency Measures in the Public Interest (FEMPI) Act 2009, as amended.

It was a progressively structured temporary reduction imposed on the pay, including any non-pensionable pay elements, of serving public service employees who had a public service pension entitlement (as defined in the relevant legislation), whether linked to their current employment at that time or from a previous employment.

PRD formed part of a wider set of financial emergency measures affecting public service pay and pensions, aimed at securing a stabilisation in the public finances during the post-2008 economic downturn Ireland.

Application of PRD

Section 2(1)(b) of the 2009 Act provided that PRD would apply to any public servant who was a member of a public service pension scheme, entitled to benefit under such a scheme or received a payment in lieu of membership of such a scheme. PRD applied to those pensionable public servants, as defined in the 2009 Act, whose pay in a calendar year exceeded applicable exemption thresholds and was chargeable on all taxable remuneration, including any non-pensionable pay elements.

Removal and replacement of PRD

Under the Public Service Pay and Pensions Act 2017, PRD was abolished. It was replaced with a permanent Additional Superannuation Contribution (ASC) with effect from 1 January 2019.

ASC was a major public service pension reform, intended to secure a significant additional contribution from public servants towards the sustainability of public service pensions.

Further information on ASC may be found here.

Supporting information