Pension reductions and universal social charges (USC) were introduced for Public Service pensioners on the 1st January 2011. Listed below are the various rates of deduction that have applied and currently apply since their introduction.
Pension Reductions
The following rates of reduction applied to pensioners, who retired prior to 1 March 2012, up to 30 June 2013.
|
Annualised Pension |
Percentage Reduction 1 Jan 2011 – 30 June 2013 |
|
First € 12,000 |
0% |
|
Between €12,001 and € 24,000 |
6% |
|
Between €24,001 and €60,000 |
9% |
|
Between €60,001 and €100,000 |
12% |
|
Balance above € 100,000 |
20% |
These rates continue to apply to pensioners on pensions of less than €32,500 from 1 July 2013 who retired prior to 1 March2012.
The rates listed below now apply to pensioners on pensions greater than €32,500 from 1 July 2013 and who retired prior to 1 March 2012.
|
Annualised Pension |
Percentage Reduction From 1 July 2013 |
|
First €12,000 |
0% |
|
Between €12,001 and €24,000 |
8% |
|
Between €24,001 and €60,000 |
12% |
|
Between €60,001 and €100,000 |
17% |
|
Balance above €100,000 |
28% |
The rates listed below apply to pensioners who retired after the 29 Feb 2012 or will retire prior to 1 Sept 2014 (pensions reflective of current pay rates).
|
Annualised Pension |
Percentage Reduction From 1 July 2013 |
|
Up to €12,000 |
0% |
|
Between €12,001 and €24,000 |
2% |
|
Between €24,001 and €60,000 |
3% |
|
Between €60,001 and €100,000 |
5% |
|
Balance above €100,000 |
8% |
A pension that would have been above €32,500 prior to the imposition of these reductions will not be reduced below €32,500.
Officers retiring after 1 September 2014 will have their pension calculated on the basis of the pay that they will be in receipt of at that time without further reductions.
Universal Social Charge (USC)
Prior to 1 Jan 2011 pensioners paid an Income Levy of 2% and PRSI rate of 4%.
These payments were replaced by USC on 1 Jan 2011 paid at the following rates.
|
Annualised Pension |
Percentage Deduction |
|
First €10,036 |
2% |
|
Next €5,980 |
4% |
|
Balance |
7% |
|
Balance (person over 70 years old or person of any age with full medical card) |
4% |
USC rates were adjusted from 1 Jan 2013 to the following rates.
|
Annualised Pension |
Pension Deduction |
|
First €10,036 |
2% |
|
Next €5,980 |
4% |
|
Next €83,984 |
7% |
|
Balance above €100,000 |
10% |
|
Next €83,984 (person over 70 years old or person of any age with full medical card) |
4% |
|
Balance above €100,00 (person over 70 years of age or person of any age with full medical card) |
7% |
Payments from Dept of Social Protection are not counted in calculation of USC. (Examples would be old age pension or widow’s pension.)
Income already subject to DIRT is exempt from USC.
