FEMPI Unwinding
FEMPI Act 2015
Between 2009 and 2013, there were five Financial Emergency Measures in the Public Interest (FEMPI) Acts passed to reduce the remuneration of public servants and pensions payable to former public servants. The Financial Emergency Measures in the Public Interest Act 2015 amends these previous Acts to begin a partial and phased restoration of the reductions made by them, as agreed by the Government and the unions representing public servants in the Lansdowne Road Agreement.
This Act also makes provision for the partial restoration of pension reductions to public servants. In addition the Act amends the Ministers and Secretaries (Amendment) Act 2011 and the Courts (Supplemental Provisions) Act 1961.
The 2015 Act provides for the amendment of the FEMPI (No. 2) Act 2009 so as to reduce the reductions effected by that legislation, as follows:
- where the annual basic salary of a public servant is up to €24,000, it shall, from 1 January 2016, be increased by 2.5 per cent;
- where the annual basic salary of a public servant is over €24,000 but not over €31,000, it shall, from 1 January 2016, be increased by 1 per cent;
- where the annual basic salary of a public servant is not over €65,000, it shall, on and from 1 September 2017, be increased by €1000;
- where the annual basic salary of a public servant is over €65,000 but not over €110,000, the amount by which it was reduced in 2013 shall be restored in two halves – the first on 1 April 2017, and the second on 1 January 2018;
- where the annual basic salary of a public servant is over €110,000, the amount by which it was reduced in 2013 shall be restored in three equal parts – the first on 1 April 2017, the second on 1 April 2018, and the third on 1 April 2019.
This section also grants the Minister power to deal with any anomalies arising in the course of administering the agreed changes in remuneration.
The 2015 Act amends the FEMPI Act 2013 to extend the suspension of the operation of incremental pay scales with respect to any public servants who are not encompassed by a registered collective agreement as referred to.
Pension Related Deductions
The 2015 Act  amends the FEMPI Act 2009, as follows:
- the exemption threshold for Pension Related Deduction 2015 will increase from €15,000 to €17,500 – this provides for a reduction in the rate of Pension Related Deduction in 2015 due to the delay in effecting a similar reduction in the rate on 1 July 2013 because of administrative and legal difficulties at that time;
- from 1 January 2016, the exemption threshold for payment of the Pension Related Deduction (PRD) will increase to €26,083 – this figure, effective from 1 January 2016, equates to the provisions of the Lansdowne Road Agreement, which provides for an increase to €24,750 from 1 January 2016 and €28,750 per annum from 1 September 2016.
The 2015 Act   amends the FEMPI Act 2010 so that those public servants who retired on or before 29 February 2012 will have the impact of their Public Service Pension Reduction reduced primarily by increasing the exemption threshold incrementally on 1 January 2016, 2017 and 2018.
The 2015 Act amends the FEMPI Act 2010 so that those public servants who retired post 29 February 2012 will have the impact of their Public Service Pension Reduction reduced primarily by increasing the exemption threshold incrementally on 1 January 2016, 2017 and 2018.
Various Sectors
The 2015 Act amends the FEMPI Act 2009 to allow that payments to health professionals for services rendered may be varied other than by being reduced.
The 2015 Act amends the FEMPI Act 2009 to allow that payments to persons other than health professionals for services rendered may be varied other than by being reduced.
The 2015 Act  amends the FEMPI (No. 2) Act 2009 so that the pay of public servants may be adjusted to reflect the terms of a collective agreement (the Haddington Road Agreement) registered in accordance with section 7 of the FEMPI Act 2013.
The 2015 Act amends the Courts (Supplemental Provisions) Act 1961 so that:
- those judges who were appointed to office prior to the commencement of the FEMPI Act 2011 shall have their annual salaries set by Government order;
- those judges appointed after the FEMPI Act 2011shall be on incremental pay scales, as set by Government order.
The time served shall be the only determining factor in moving from one point on the new scales to another, and what shall happen in the case of anomalies arising.
The 2015 Act amends the Ministers and Secretaries (Amendment) Act 2011 to give the Minister permanent powers to preclude public servants from benefiting from the payment of unsanctioned remuneration.
20i7 Restoration
The Public Service Pay and Pensions Act 2017  provides for restoration – further to that restoration provided for under the Financial Emergency Measures in the Public Interest (FEMPI) Act of 2015 – of the basic salaries of public servants, which were reduced under the FEMPI Acts of 2009, 2011 and 2013. It also provides for the restoration of pensions payable to public service pensioners through the phased further lessening of the Public Service Pension Reduction (PSPR).
This Act repeals the Financial Emergency Measures in the Public Interest Act 2009. It also institutes the conversion of the Pension-Related Deduction (PRD) provided for under that Act into a permanent Additional Superannuation Contribution (ASC) for all public servants who are members of a public service pension scheme or receive a gratuity in lieu of a public service pension scheme.It also provides for the regulation of professional fees and other payments.
Public Service Pay Act 2017
The Public Service Pay and Pensions Act 2017 repeals the FEMPI 2009 Act on 1 January 2018. It provides further restoration of a public servant’s basic salary, in addition to the restoration provided for under the FEMPI Act 2015.
This section also confirms that where restoration provided for in the Act increases a public servant’s basic salary beyond the amount it was at prior to the FEMPI reductions, the increase will nevertheless apply.
Restoration of Covered Public Servants’ Pay
The Public Service Pay and Pensions Act 2017 provides for increases to a covered public servant’s basic salary in 2018, as follows: an increase of 1 per cent from 1 January 2018; and an increase of 1 per cent from 1 October 2018. The basic salary is based on the salary after the application of the restoration provided for in the FEMPI Act 2015.
It provides for increases to a covered public servant’s basic salary in 2019, as follows: where their basic salary does not exceed €30,000, an increase of 1 per cent from 1 January 2019; and an increase of 1.75 per cent from 1 September 2019. It also clarifies that the percentage increases to basic salary provided for are applied cumulatively. The percentage increases to basic salary provided for are applied cumulatively.
The Public Service Pay and Pensions Act 2017 provides for increases to a covered public servant’s basic salary in 2020, as follows:
- where their basic salary does not exceed €32,000, an increase of 0.5 per cent from 1 January 2020; and
- an increase of 2 per cent from 1 October 2020.
Restoration of Non-covered Public Servants’ Pay
The Public Service Pay and Pensions Act 2017 provides for an increase to a non-covered public servant’s basic salary in 2018 as follows: an increase of 1 per cent from 1 October 2018.
The Public Service Pay and Pensions Act 2017 provides for increases to a non-covered public servant’s basic salary in 2019 as follows:
- an increase of 1 per cent from 1 July 2019; and
- where their basic salary does not exceed €30,000, an increase of 1 per cent from 1 October 2019.
The percentage increases to basic salary are applied cumulatively.
It provides for increases to a non-covered public servant’s basic salary in 2020 and 2021 as follows:
- an increase of 1.75 per cent from 1 June 2020;
- where their basic salary does not exceed €32,000, an increase of 0.5 per cent from 1 October 2020; and
- an increase of 2 per cent from 1 July 2021.
The Minister has the power to deal with any anomalies arising in the course of applying the restoration provided for in the preceding chapters.
Completion of Pay Restoration
The Public Service Pay and Pensions Act 2017  provides for the restoration of any outstanding amounts of basic salary reduced under the FEMPI No. 2 Act 2009 for public servants earning not more than €150,000. It  requires the Minister to make an order specifying the date by which this restoration must occur, as follows:
- for a covered public servant, a date after 1 October 2020 but not later than 1 July 2021; and
- for a non-covered public servant, on 1 July 2021.
This does not apply where a public servant’s basic salary is equal to or exceeds their salary as it stood prior to the enactment of section 2 of the FEMPI No. 2 Act 2009.
The Public Service Pay and Pensions Act 2017  provides for the restoration of any outstanding amounts of basic salary reduced under the FEMPI No. 2 Act 2009 for public servants earning more than €150,000.
The Minister to make an order specifying the date by which this restoration must occur as follows:
For a covered public servant, a date after 1 October 2020 but not later than 1 July 2022; and fFor a non-covered public servant, a date after 1 July 2021 but not later than 1 July 2022.
Exclusions
The Public Service Pay and Pensions Act 2017 Â excludes the following officeholders
- The Taoiseach;
- The Tánaiste;
- A Minister of the Government;
- A Minister of State; and
- Te Attorney General.
It  suspends the awarding of increments to non-covered public servants from 1 January 2018 to 31 December 2020. It  amends e FEMPI No. 2 Act 2009 to include the Public Service Stability Agreement 2018-2020.
Public Service Pension Reductions pre-March 2012
The Public Service Pay and Pensions Act 2017 Â Â amends section 2 of the FEMPI Act 2010 so that those public servants who retired on or before 29 February 2012 will have the impact of their Public Service Pension Reduction eliminated or lessened by increasing the exemption threshold incrementally on 1 January 2019 and 1 January 2020.
For 2019, the PSPR table for this cohort of pensioners is as follows:
| Annualised amount of public service pension | Reduction |
| Up to €39,000 | Exempt |
| Any amount over €39,000 but not over €60,000 | 12 per cent |
| Any amount over €60,000 but not over €100,000 | 17 per cent |
| Any amount over €100,000 | 28 per cent |
For 2020, the PSPR table for this cohort of pensioners is as follows:
| Annualised amount of public service pension | Reduction |
| Up to €54,000 | Exempt |
| Any amount over €54,000 but not over €60,000 | 12 per cent |
| Any amount over €60,000 but not over €100,000 | 17 per cent |
| Any amount over €100,000 | 28 per cent |
Public Service Pension Reductions post-March 2012
The Public Service Pay and Pensions Act 2017 Â amends section 2A of the FEMPI Act 2010 in order to reduce the Public Service Pension Reduction liability for public servants who retired after 29 February 2012 by decreasing the band-specific reduction rates on 1 January 2019 and 1 January 2020.
For 2019, the PSPR table for this cohort of pensioners is as follows:
| Annualised amount of public service pension | Reduction |
| Up to €60,000 | Exempt |
| Any amount over €60,000 but not over €100,000 | 3 per cent |
| Any amount over €100,000 | 8 per cent |
For 2020, the PSPR table for this cohort of pensioners is as follows:
| Annualised amount of public service pension | Reduction |
| Up to €60,000 | Exempt |
| Any amount over €60,000 but not over €100,000 | 1 per cent |
| Any amount over €100,000 | 6 per cent |
Remaining Deductions
The Public Service Pay and Pensions Act 2017 Â requires the Minister to make an order by a date no later than 31 December 2020 specifying a date on and from which any remaining Public Service Pension Reduction impacts will cease to apply.
Where a public servant is in receipt of a relevant benefit (a gratuity or annual payment in lieu of a public service pension scheme), this shall be deemed to be a pension entitlement for the purpose of the Additional Superannuation Contribution (ASC).
It specifies the categories of public servant who are exempt from this Part.
Additional Superannuation Contribution
An Additional Superannuation Contribution (ASC) will be paid in the year 2019 and subsequent years and that ASC is in addition to any other superannuation contribution currently made by a public servant.
Section 32 applies to a covered public servant and specifies the rates of ASC payable in 2019 and 2020. For 2019, the ASC tables are as follows:
| Member of a standard accrual pension scheme | |
| Band | Rate |
| €0 – €32,000 | Exempt |
| €32,000 – €60,000 | 10% |
| €60,000 and over | 10.5% |
| Member of a fast accrual pension scheme | |
| Band | Rate |
| €0 – €28,750 | Exempt |
| €28,750 – €60,000 | 10% |
| €60,000 and over | 10.5% |
| Member of the Single Public Service Pension Scheme | |
| Band | Rate |
| €0 – €32,000 | Exempt |
| €32,000 – €60,000 | 6.66% |
| €60,000 and over | 7% |
For 2020, the ASC tables are as follows:
| Member of a standard accrual pension scheme | |
| Band | Rate |
| €0 – €34,500 | Exempt |
| €34,500 – €60,000 | 10% |
| €60,000 and over | 10.5% |
| Member of a fast accrual pension scheme | |
| Band | Rate |
| €0 – €28,750 | Exempt |
| €28,750 – €60,000 | 10% |
| €60,000 and over | 10.5% |
| Member of the Single Public Service Pension Scheme | |
| Band | Rate |
| €0 – €34,500 | Exempt |
| €34,500 – €60,000 | 3.33% |
| €60,000 and over | 3.5% |
Section 33 applies to a non-covered public servant and specifies the rates of ASC for the years 2019 and 2020 as follows:
| Member of a standard accrual pension scheme | |
| Band | Rate |
| €0 – €28,750 | Exempt |
| €28,750 – €60,000 | 10% |
| €60,000 and over | 10.5% |
| Member of a fast accrual pension scheme | |
| Band | Rate |
| €0 – €24,869 | Exempt |
| €24,869 – €60,000 | 10% |
| €60,000 and over | 10.5% |
| Member of the Single Public Service Pension Scheme | |
| Band | Rate |
| €0 – €28,750 | Exempt |
| €28,750 – €60,000 | 6.66% |
| €60,000 and over | 7% |
Section 34 specifies the rates of ASC payable by pensionable public servants in the year 2021 and onwards, as follows:
| Member of a standard accrual pension scheme | |
| Band | Rate |
| €0 – €34,500 | Exempt |
| €34,500 – €60,000 | 10% |
| €60,000 and over | 10.5% |
| Member of a fast accrual pension scheme | |
| Band | Rate |
| €0 – €28,750 | Exempt |
| €28,750 – €60,000 | 10% |
| €60,000 and over | 10.5% |
| Member of the Single Scheme | |
| Band | Rate |
| €0 – €34,500 | Exempt |
| €34,500 – €60,000 | 3.33% |
| €60,000 and over | 3.5% |
ASC Applicable
The Public Service Pay and Pensions Act 2017  clarifies which particular ASC rates shall apply where a public servant is a member of multiple types of public service pension scheme in one year. It gives the Minister for Public Expenditure and Reform the power to make regulations for the purpose of the calculating, making, collection, disposal and recovery of ASC. The  ASC must be paid to the benefit of the Exchequer.
The Public Service Pay and Pensions Act 2017 Â provides for the refund of ASC where a person leaves the public service and has no preserved superannuation benefits or relevant benefits. This section also requires the repayment of any refund of ASC (with compound interest) where a person recommences employment in the public service and wishes to make such service reckonable for superannuation purposes.
The Public Service Pay and Pensions Act 2017 Â grants the Minister for Public Expenditure and Reform the power to make determinations where there is doubt concerning the application of ASC to a person.
Professional Services Fees
The Public Service Pay and Pensions Act 2017 Â Â grants a Minister of Government the power, by regulation and with the consent of the Minister for Public Expenditure and Reform, to vary the fees payable to professionals for services provided, in accordance with any contract, arrangement or other enactment.
Prior to making any such regulation, the section also requires the Minister of Government (or public service body concerned, under a Minister’s direction as appropriate) to engage in consultations. This also requires the relevant Minister of Government to carry out a review of the operation, effectiveness and impact of the regulations every third year after the introduction of such regulations.
2021 General Provisions
The 2021 Act amends the restrictions on increases to public service pay introduced by the Financial Emergency Measures in the Public Interest (FEMPI) No. 2 Act 2009.
In addition to changes to pay arising from an Act of the Oireachtas, an order of a Court, or a determination that there is a legal entitlement to a pay increase, the Minister for Public Expenditure and Reform may sanction increases in the pay or allowances of public servants.
Where a contract of employment is amended in accordance with amended provisions of the Act of 2009 that no further Ministerial sanction is required under that Act.
The 2021 Act amends the Public Service Pay and Pensions Act 2017 to align the date for repeal of certain restrictions on increases to public service pay with a date provided in this act.