{"id":28096,"date":"2023-10-07T21:44:56","date_gmt":"2023-10-07T21:44:56","guid":{"rendered":"https:\/\/legalblog.ie\/?p=28096"},"modified":"2023-12-14T21:54:16","modified_gmt":"2023-12-14T21:54:16","slug":"fempi-2009-2013","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/fempi-2009-2013\/","title":{"rendered":"FEMPI Measures"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/legalblog.ie\/fempi-2009-2013\/#FEMPI_Acts\" title=\"FEMPI Acts\">FEMPI Acts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/legalblog.ie\/fempi-2009-2013\/#First_Act_Pension_Levy\" title=\"First Act Pension Levy\">First Act Pension Levy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/legalblog.ie\/fempi-2009-2013\/#Health_Professionals\" title=\"Health Professionals\">Health Professionals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/legalblog.ie\/fempi-2009-2013\/#Review\" title=\"Review\">Review<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/legalblog.ie\/fempi-2009-2013\/#Child_Care_Supplements\" title=\"Child Care Supplements\">Child Care Supplements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/legalblog.ie\/fempi-2009-2013\/#Second_2009_Act_Pay_Cuts\" title=\"Second 2009 Act Pay Cuts\">Second 2009 Act Pay Cuts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/legalblog.ie\/fempi-2009-2013\/#Consequential_Measures\" title=\"Consequential Measures\">Consequential Measures<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/legalblog.ie\/fempi-2009-2013\/#2010_Act\" title=\"2010 Act\">2010 Act<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/legalblog.ie\/fempi-2009-2013\/#Minimum_Wage\" title=\"Minimum Wage\">Minimum Wage<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/legalblog.ie\/fempi-2009-2013\/#2011_Act_Judiciary\" title=\"2011 Act Judiciary\">2011 Act Judiciary<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/legalblog.ie\/fempi-2009-2013\/#Further_Reductions_for_Higher_Paid\" title=\"Further Reductions for Higher Paid\">Further Reductions for Higher Paid<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/legalblog.ie\/fempi-2009-2013\/#Increment_Suspension\" title=\"Increment Suspension\">Increment Suspension<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"FEMPI_Acts\"><\/span>FEMPI Acts<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There have been a number of Financial Emergency Measures in the Public Interest Act. The Acts were introduced in the context of stabilization of public finances.\u00a0 A \u20ac2 billion reduction was required in expenditure.<\/p>\n<p>The first 2009 Act provided for a pensions levy. The second 2009 Act\u00a0 required a reduction in the remuneration of all public servants.<\/p>\n<p>Public servants were widely defined to include government officers and employees and employees and officers of a public service body.\u00a0 Remuneration refers to total earnings.<\/p>\n<p>Public bodies include Garda Siochana, local authorities, defence forces, health service executives, vocational education committees, third-level primary secondary schools and non-commercial semi-state bodies, where public service pension scheme may exist.<\/p>\n<p>The deductions are tax deductible.\u00a0 Public servants who are making AVCs were not brought above the relevant limits as a result of the deductions.<\/p>\n<p>The provisions applied to local authority employees and there is a consequent reduction of the required funding to local authorities.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"First_Act_Pension_Levy\"><\/span>First Act Pension Levy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The first Act provided for a pension levy, mostly financed by deduction. The legislation provided that \u00a0public servants who had less than three year service could terminate their employment by 1st April 2009 without a pre-notice if they did not wish to make the deductions.<\/p>\n<p>A deduction was applied at the following rates<\/p>\n<ul>\n<li>3 percent on first \u20ac15,000,<\/li>\n<li>6 percent the next \u20ac5,000 and<\/li>\n<li>10 percent thereafter.<\/li>\n<\/ul>\n<p>Deductions could be repaid to persons who leave public service with no preserved benefits i.e. with less than two year service.\u00a0 No additional pension benefit is conferred by the deductions.<\/p>\n<p>The Minister was empowered to exempt certain classes or groups from the deduction if he was satisfied that they distinguished were \u00a0by some particular aspect of their employment terms from other subjective deduction.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Health_Professionals\"><\/span>Health Professionals<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Minister for Health may by regulation made together with the Minister for Finance fix a rate of payment to be paid to health professionals for services they render to health bodies.<\/p>\n<p>Consultations were required.\u00a0 Health professionals who did not wish to continue to provide services could give notice of withdrawal of services.<\/p>\n<p>There is provision for regulations by the Minister for finance to fix payments for services rendered to be exercised by any other Minister with appropriate modifications.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Review\"><\/span>Review<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The legislation provided an annual review of the operation of the measures and in particular consideration as to whether the provisions continued to be necessary.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Child_Care_Supplements\"><\/span>Child Care Supplements<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The social welfare code was amended providing a reduction in the age limit for child care supplements for five and half to five and a reduction in the rate of payment from \u20ac1,140 to \u20ac996.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Second_2009_Act_Pay_Cuts\"><\/span>Second 2009 Act Pay Cuts<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Financial Emergency Measures in the Public Interest (No.2) Act 2009 was introduced to achieve further savings of over \u20ac1 billion in public service pay and pensions bill in 2010.\u00a0 The definitions of public service and public servants were similar to that applicable to the public service pensions levy enacted in the above mentioned legislation.<\/p>\n<p>The legislation amended public service pay in a manner set out below.\u00a0 This\u00a0 cut cross all existing strategy provisions, contractual provisions, sectors, instruments or anything else fixing the rate of the salary.<\/p>\n<p>Public servant with salaries, basic salaries not more than \u20ac125,000 were subjected to the following reductions,<\/p>\n<ul>\n<li>up to \u20ac10,000 5 percent,<\/li>\n<li>\u20ac30,000-\u20ac70,000 7.5 percent,<\/li>\n<li>amounts over \u20ac70,000 but not over \u20ac125,000<\/li>\n<li>10 percent.<\/li>\n<\/ul>\n<p>Allowances relating to basic salary were reduced correspondingly.\u00a0 Fixed or periodic allowances are reduced by 5 percent, for those of salaries up to a \u20ac 125,000 and 8 percent above that level.\u00a0 Reimbursement of expenses are not affected.<\/p>\n<p>Public servants with basic salaries above \u20ac125,000 were adjusted in line with the recommendations of the public review body on high remuneration in the public sector.\u00a0 The reductions applied were as follows<\/p>\n<ul>\n<li>\u20ac125,000-\u20ac165,000 8 percent,<\/li>\n<li>\u20ac165,000-\u20ac200,000 12 percent,<\/li>\n<li>\u20ac200,000 or more 15 percent.<\/li>\n<\/ul>\n<p>The Minister was empowered to modifying any reductions to remove anomalies.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Consequential_Measures\"><\/span>Consequential Measures<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The deduction in public servants salaries to be disregarded for the purpose of calculation of the pension entitlements of public servants who have previously retired or will retire up to 31st December 2010.<\/p>\n<p>Where rate of remuneration has been reduced under the Act, a public servant has no entitlement to receive a higher rate than that provided under the legislation.\u00a0 No body responsible for payment of remuneration is entitled to pay a higher rate.\u00a0 Overpayment may be recovered by the body concerned.\u00a0 The over payment may be deducted from funding to the body concerned.<\/p>\n<p>The Minister is obliged to undertake an annual review of the operation and effectiveness of the legislation and consider whether the provisions continue to be necessary.\u00a0 Having regard to its purposes states revenues and public pay and service bill.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2010_Act\"><\/span>2010 Act<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Financial Measures in the Public Interest Act 2010 reduced pay for the members of the Government and reduced the national minimum wage.\u00a0 It reduced annualized public service pension payable to pensioners or someone who becomes a pensioner after the relevant date.\u00a0 It applied to pension survivors.<\/p>\n<p>In the case of pensions the reductions are as follows,<\/p>\n<ul>\n<li>below \u20ac12,000 exempt,<\/li>\n<li>between \u20ac12,000-\u20ac24,000 6 percent,<\/li>\n<li>between \u20ac24,000 and \u20ac60,000 9 percent,<\/li>\n<li>above \u20ac60,000 12 percent.<\/li>\n<\/ul>\n<p>The reduction takes effect notwithstanding any other legislation.\u00a0 In the same manner as above the reductions are applicable to all other public sector bodies.<\/p>\n<p>The Minister may grant an exemption if satisfied that there are materially distinguished grounds applicable to a class or group of pensioners that make the reduction justifiable.<\/p>\n<p>There are specific reductions in the remuneration of certain senior government ministers of 19.5% and 25%.<\/p>\n<p>The legislation is to be subject to annual review in the same manner as the above legislation.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Minimum_Wage\"><\/span>Minimum Wage<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The 2010 Act allows the Minister for Enterprise Trade and Innovation to reduce the minimum wage to \u20ac7.65 per hour.\u00a0 The order may be varied from time to time.<\/p>\n<p>The Minister may or may not revoke the order whether or not a recommendation has been provided for international economic agreement or labour court recommendation criteria to be taken into account by the Minister before making any future orders specified.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2011_Act_Judiciary\"><\/span>2011 Act Judiciary<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Financial Emergency Measures in the Public Interest Act 2011 applied to\u00a0 members to the judiciary. It followed the outcome of the 29th Amendment of the Constitution.\u00a0 The Amendment\u00a0 confirmed that the remuneration of judges is subject to the imposition of taxes and levies and other charges imposed by law.<\/p>\n<p>The 2011 Act provided where before or after enactment into law of the Amendment to the Constitution, reductions have been made or are to be made to classes of persons whose remuneration is paid out of public money, reductions may also be made in the remuneration of judges.<\/p>\n<p>Judges and military judges were subjected to the above mentioned reductions.\u00a0 The legislation applied both of the previous rates including the pension levy. A 10 percent reduction applied at the beginning of 2011 to new entrants in the case of new judges.<\/p>\n<p>The pay reductions for judges appliws as of 1st January 2012 ranging from 8 to 15 percent\u00a0 in accordance with the above reductions. Equivalent provisions applied to the office of the President.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Further_Reductions_for_Higher_Paid\"><\/span>Further Reductions for Higher Paid<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Financial Emergency Measures in the Public Interest Act 2013 reduced the remuneration of certain public servants&#8217; with rates of pay higher than \u20ac65,000 per annum.\u00a0 It provided for the reduction of the amount of payment of pensions or other benefits payable in respect of certain categories of persons.<\/p>\n<p>It provided for suspension of\u00a0 progression increments for three years for all public servants unless they are covered by a collective agreement that modifies the terms of the increment suspension which has been registered with the Labour Relations Commission.<\/p>\n<p>A further pay reduction was applied to public services with\u00a0 remunerations greater than \u20ac65,000 as of 1st July 2013.\u00a0 The reductions are as follows,<\/p>\n<ul>\n<li>up to \u20ac80,000 5.5 percent,<\/li>\n<li>\u20ac80,000 to \u20ac150,000 8 percent,<\/li>\n<li>\u20ac150,000 to \u20ac185,000 9 percent,<\/li>\n<li>over \u20ac185,000 10 percent.<\/li>\n<\/ul>\n<p>There was provision for marginal relief for those whose service and allowances are marginally above \u20ac65,000.<\/p>\n<p>Pensions<\/p>\n<p>The reduction that applies to public service pensions in payment for persons retired prior to 29th February 2012 on pensions of greater than \u20ac33,500 is as follows<\/p>\n<p>The following figures are the annualized amount of public service pension and the relevant reductions<\/p>\n<ul>\n<li>Up to \u20ac12,000 exempt,<\/li>\n<li>\u20ac12,000 to \u20ac24,000 8 percent,<\/li>\n<li>\u20ac24,000 to \u20ac60,000 12 percent,<\/li>\n<li>\u20ac60,000 to \u20ac100,000 17 percent,<\/li>\n<li>over \u20ac 100,000 28 percent.<\/li>\n<\/ul>\n<p>Reductions to public service pensions in payment of greater than \u20ac32,500 applied\u00a0 to\u00a0 those who retired after 29th February 2012 but before the specified grace period. It was significantly less being respectively at the various threshold<\/p>\n<ul>\n<li>exempts<\/li>\n<li>2 percent,<\/li>\n<li>3 percent,<\/li>\n<li>5 percent and<\/li>\n<li>8 percent.<\/li>\n<\/ul>\n<p>No public service pension is to be reduced below \u20ac32,500 by the above provisions.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Increment_Suspension\"><\/span>Increment Suspension<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Provisions were made for freeze of incremental progression for public services on incremental pay scales for a period of three years commencing 1, July 2013.\u00a0 Groups or grades may be excluded from the effect of the provision.\u00a0 The effect may be modified on the basis of the collective agreement that has been registered with the LRC.<\/p>\n<p>Persons retiring before 31st August 2014 or such later date as may be ordered by the Minister were entitled to have their pensions calculated as if certain of the above provisions had not applied.<\/p>\n<p>As above there is to be an annual review and report on the legislation.\u00a0 The continued necessity is to be considered in the same criterion as above.<\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-28096\" data-postid=\"28096\" class=\"themify_builder_content themify_builder_content-28096 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n","protected":false},"excerpt":{"rendered":"<p>FEMPI Acts There have been a number of Financial Emergency Measures in the Public Interest Act. The Acts were introduced in the context of stabilization of public finances.\u00a0 A \u20ac2 billion reduction was required in expenditure. The first 2009 Act provided for a pensions levy. The second 2009 Act\u00a0 required a reduction in the remuneration [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[380],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/28096"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=28096"}],"version-history":[{"count":11,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/28096\/revisions"}],"predecessor-version":[{"id":30241,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/28096\/revisions\/30241"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=28096"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=28096"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=28096"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}