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Pension Related Deduction (PRD)

Published on May 12, 2023

Last update on May 29, 2023

Table of contents

Background

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