Financial Emergency Measures in the Public Interest Act 2013
In short
This law, the Financial Emergency Measures in the Public Interest Act 2013, is about reducing the pay and pensions of certain public servants and altering their pay scales to help the State save money during an economic crisis. It aims to address a serious disturbance in the economy and reduce the shortfall between government revenue and expenditure.
What it regulates
- The reduction of remuneration for certain public servants.
- The reduction of certain public service pensions.
- The alteration of pay scales for public servants, including the suspension of increments.
- Amendments to previous Financial Emergency Measures in the Public Interest Acts.
Who it concerns
- Public servants, including members of the Houses of the Oireachtas, the judiciary, and certain office holders.
- Persons who are or were in the public service and receive occupational pensions or other benefits.
Key points
- Remuneration of public servants earning more than €65,000 is reduced, effective from July 1, 2013.
- The reduction rates for remuneration are: up to €80,000 (5.5%), over €80,000 but not over €150,000 (8%), over €150,000 but not over €185,000 (9%), and over €185,000 (10%).
- If applying these reductions would lower annual remuneration below €65,000, it will only be reduced to €65,000.
- Powers to fix terms and conditions for public servants may be exercised to result in less favourable remuneration or increased working time (within limits of the Organisation of Working Time Act 1997).
Legal text
Financial Emergency Measures in the Public Interest Act 2013 Skip to content Disclaimer Feedback Helpdesk Gaeilge Léim go dtí an t-ábhar Séanadh Aiseolas Deasc chabhrach English Gaeilge English Produced by the Office of the Attorney General Táirgthe ag Oifig an Ard-Aighne Home Legislation Acts of the Oireachtas Statutory Instruments Pre-1922 Legislation Constitution External Resources Bills (Houses of the Oireachtas) Iris Oifigiúil / Official Gazette Revised Acts (LRC) Classified List of Legislation (LRC) Translations (acts.
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- s)or rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile ActsAchtanna 2013 Financial Emergency Measures in the Public Interest Act 2013 Financial Emergency Measures in the Public Interest Act 2013 Permanent Page URL View by SectionAmharc de réir Ailt View Full ActAmharc ar an Acht Iomlán Bill History Stair Bille Commencement, Amendments, SIs made under the Act Tosach Feidhme, Leasuithe, IRí arna ndéanamh faoin Acht Revised Act Acht Athbh… Open PDFOscail PDF Print Full ActPriontáil an tAcht Iomlán Number 18 of 2013 FINANCIAL EMERGENCY MEASURES IN THE PUBLIC INTEREST ACT 2013 ARRANGEMENT OF SECTIONS Section 1. Interpretation. 2. Reduction in remuneration of public servants who earn more than €65,000. 3. Consequential amendments of Act of 2009. 4. Amendment of definition of “pensioner” in Act of 2010. 5. Reduction in certain public service pensions. 6. Consequential amendments of Act of 2010. 7. Pay scales: suspension, subject to exceptions, for certain period. 8. Exemption, etc., from operation of section 7 in certaincircumstances. 9. Certain pension rights not affected. 10. Amendment of Schedule to Act of 2009. 11. Amendment of Financial Emergency Measures in the Public Interest Act 2009. 12. Review of this Act and certain enactments of like character. 13. Short title. Acts Referred to Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 2010, No. 24 Financial Emergency Measures in the Public Interest Act 2009 2009, No. 5 Financial Emergency Measures in the Public Interest (No. 2) Act 2009 2009, No. 41 Financial Emergency Measures in the Public Interest Act 2010 2010, No. 38 Financial Emergency Measures in the Public Interest (Amendment) Act 2011 2011, No. 39 Organisation of Working Time Act 1997 1997, No. 20 Public Service Pensions (Single Scheme and Other Provisions) Act 2012 2012, No. 37 Public Service Superannuation (Miscellaneous Provisions) Act 2004 2004, No. 7 Number 18 of 2013 FINANCIAL EMERGENCY MEASURES IN THE PUBLIC INTEREST ACT 2013 AN ACT, IN THE PUBLIC INTEREST, TO PROVIDE FOR— (A) THE REDUCTION OF THE REMUNERATION OF CERTAIN PUBLIC SERVANTS (INCLUDING MEMBERS OF THE HOUSES OF THE OIREACHTAS, THE JUDICIARY AND CERTAIN OFFICE HOLDERS); (B) THE REDUCTION OF THE AMOUNT OF THE PAYMENT OF PENSION OR OTHER BENEFITS (OTHER THAN LUMP SUMS) PAYABLE TO OR IN RESPECT OF CERTAIN PERSONS WHO ARE OR WERE IN THE PUBLIC SERVICE (INCLUDING MEMBERS AND FORMER MEMBERS OF THE HOUSES OF THE OIREACHTAS, FORMER MEMBERS OF THE JUDICIARY AND FORMER HOLDERS OF CERTAIN OFFICES) UNDER AN OCCUPATIONAL PENSION SCHEME OR PENSION ARRANGEMENT (BY WHATEVER NAME CALLED); AND (C) THE ALTERATION OF THE OPERATION OF SCALES OF PAY FOR PUBLIC SERVANTS (INCLUDING THE SUSPENSION OF THE AWARDING, FOR A CERTAIN PERIOD, OF INCREMENTS UNDER THOSE SCALES), AND TO PROVIDE FOR RELATED MATTERS. [5th June, 2013] WHEREAS budgetary and fiscal measures have been taken by the State since 2009 to address a serious disturbance in the economy and a decline in the economic circumstances of the State that have occurred; AND WHEREAS it is necessary for the State to achieve further significant savings in its expenditure, both directly and indirectly, on remuneration and in its expenditure on public service pensions as a contribution to the reduction of the shortfall between revenue and expenditure that is needed to put debt on a downward path; AND WHEREAS the State is availing itself of a financial assistance programme established by the European Union and the International Monetary Fund with funding provided by the European Financial Stabilisation Mechanism, the European Financial Stability Facility, the bilateral lenders (the United Kingdom, the Kingdom of Sweden and the Kingdom of Denmark) and the International Monetary Fund and it is necessary to adopt a range of measures to meet commitments included in that programme to address the economic crisis in the State; AND WHEREAS it is necessary for the State to take measures as part of remedial action to maintain the State’s path toward correcting the excessive deficit by 2015 in line with the recommendation to that effect of the Council of the European Union (Council Recommendation with a view to bringing to an end the situation of an excessive deficit in Ireland of 7 December 2010); BE IT THEREFORE ENACTED BY THE OIREACHTAS AS FOLLOWS: Interpretation. 1.—
- a)to an increment that may be awarded to a public servant are references to an increment, provided for in the applicable pay scale, that may be awarded to the public servant subject to there being satisfied the one or more conditions that are required by the pay scale, or a written statement governing its operation, to be satisfied before an award of such an increment may be made, and (
- b)to a point on a pay scale shall be read accordingly. Reduction in remuneration of public servants who earn more than €65,000. 2.— The Act of 2009 is amended by inserting the following sections after section 2: “Public servants’ remuneration: reduction, with effect from 1 July 2013, for certain public servants. 2A.—
- b)a reference to the annual remuneration of a public servant is a reference to the public servant’s annual basic salary, together with any fixed, periodic allowance that is— (
- i)reckonable for the purposes of calculating a pension entitlement of the public servant, and (
- ii)paid to the public servant as part of his or her annual remuneration, and, for the purposes of this section, the definition of ‘public servant’ in section 1 shall apply as if in paragraph (
- e)of that definition the words ‘who was appointed to judicial office before the commencement of section 10 of the FinancialEmergency Measures in the Public Interest (Amendment) Act 2011’ were omitted.
- a)is not reimbursement of any expense actually incurred, and (
- b)is expressed as a specified percentage or specified proportion of another part of the remuneration (referred to in this subsection as ‘basic salary’) of a public servant to whom the relevant provision applies, then the public servant’s basic salary, for the purposes of calculating the amount payable as the allowance, is his or her basic salary reduced in accordance with subsections
- a)any provision by or under— (
- i)any other Act, (
- ii)any statute or other document to like effect of a university or other third level institution, (iii) any circular or instrument or other document, (
- iv)any written agreement or contractual arrangement, or (
- b)any verbal agreement, arrangement or understanding or any expectation. Table Reduction in Remuneration of Public Servants Earning More Than €65,000 Annualised amount of Remuneration Reduction Up to €80,000 5.5 per cent Any amount over €80,000 but not over €150,000 8 per cent Any amount over €150,000 but not over €185,000 9 per cent Any amount over €185,000 10 per cent Alteration of remuneration (other than basic salary) or working time of public servants. 2B.—
- a)to result in less favourable remuneration for those persons, in respect of the employment, office or position held by them in the public service body concerned, than that enjoyed by them immediately before the exercise of the power, or (
- b)to provide that the working time, whether by reference to a day, a week or a month, of those persons in the employment, office or position held by them in the public service body concerned shall, to a specified extent, be greater (but not greater than that which is permitted by the Act of 1997) than that which stood provided, immediately before the exercise of the power, to be their working time in that employment, office or position.
- a)any provision by or under— (
- i)any other Act, (
- ii)any statute or other document to like effect of a university or other third level institution, (iii) any circular or instrument or other document, (
- iv)any written agreement or contractual arrangement, or (
- b)any verbal agreement, arrangement or understanding or any expectation.”. Consequential amendments of Act of 2009. 3.—
- a)the definition of ‘pensioner’ in section 1 shall apply with the modification that references to the relevant date in paragraphs (
- b)and (
- c)of the definition shall be read as references to 31 August 2014 or such other date as may be specified in accordance with section 9
- ii)of the Financial Emergency Measures in the Public Interest Act 2013; (
- b)‘relevant (post 29 February 2012) pensioner’ means, subject to subsection
- ii)of the Financial Emergency Measures in the Public Interest Act 2013’ shall be disregarded in the case of a pensioner falling under paragraph (
- c)of the definition in section 1 of ‘pensioner’, as that definition applies by virtue of subsection
- a)any provision by or under— (
- i)any other enactment, (
- ii)any statute or other document to like effect of a university or other third level institution, (iii) any pension scheme or arrange-ment, (
- iv)any circular or instrument or other document, (
- v)any written agreement or contractual arrangement, or (
- b)any verbal agreement, arrangement or understanding or any expectation.”. Consequential amendments of Act of 2010. 6.—
- a)in the case of section 2, is a pensioner or becomes a pensioner on or at any time before the relevant date or, in the case of a pensioner falling under paragraph (
- c)of the definition of “pensioner” in section 1, at any time after that date; and (
- b)in the case of section 2A, falls within the definition of ‘relevant (post 29 February 2012) pensioner’ in that section.”.
- a)section 4 (as amended by the Act of 2012); (
- b)section 5 (as amended by the Act of 2012); (
- c)section 6; (
- d)section 11; and (
- e)section 12 (as amended by the Act of 2012), are amended by inserting “or 2A” after “section 2” in each place where it occurs. Pay scales: suspension, subject to exceptions, for certain period. 7.—
- a)no increment shall be awarded to a public servant; and (
- b)the operation of the pay scale that applies in respect of a public servant shall stand suspended, and with the effect that— (
- i)the point on that pay scale that shall be applicable in respect of a public servant on 1 July 2016 shall be that which was applicable on 1 July 2013 in respect of him or her, and (
- ii)the operation of that pay scale, on and from 1 July 2016, shall be by reference to service of the public servant on and from 1 July 2016, but this is subject to subsection
- a)apply to a public servant only to the extent specified in the agreement, or (
- b)apply to a public servant with such modifications as are specified in the agreement, to whom a collective agreement relates and which agreement— (
- i)for the time being stands registered with the Labour Relations Commission for the purposes of this section, and (
- ii)provides for the application to such a public servant of subsection
- a)exceptional circumstances exist (because of some particular aspect or condition of their employment, office or position) in respect of such public servant, class or group and a substantial inequity would thereby arise, or (
- b)any award under an arbitration agreement would, but for section 7 , result in the amendment of an applicable pay scale, and there is in the circumstances a necessity for a distinction from other public servants or from other classes or groups of public servants, as the case may be, then the Minister, if he or she considers it to be just and equitable in all the circumstances to do so, may by direction— (
- i)exempt that public servant, class or group from the operation of section 7 , either entirely or to such extent as the Minister considers appropriate, or (
- ii)modify the operation of section 7 to permit the awarding of increments in such manner as the Minister thinks fit, and the provisions of section 7 shall be read subject to any such direction.
- a)a person who was at some time before 1 July 2013 a public servant but is on 1 July 2013 in receipt of a pension under a public service pension scheme, (
- b)a person who was a public servant on 1 July 2013, but ceases to be a public servant on or before— (
- i)31 August 2014, or (
- ii)a later date specified by the Minister by order in accordance with subsection
- ii)a public servant and has a preserved benefit in a public service pension scheme in respect of which the preserved pension age of the person falls on or before that date, and (
- c)a person who becomes entitled to payment of a public service pension as a spouse, civil partner or child of a former public servant to whom paragraph (
- a)or (
- b)applied.
- a)the amendment made by section 2 inserting a section 2A in the Act of 2009, (
- b)any suspension of the operation of a pay scale by virtue of subsection
- Railway Procurement Agency.
- National Treasury Management Agency.”.
- c)in subsection (3B) by substituting “2014” for “2012”, and (
- d)by substituting the following for the Table to subsection (3B): “Table Amount of Remuneration Rate of deduction Up to €15,000 Exempt Any excess over €15,000 but not over €20,000 2.5 per cent Any excess over €20,000 but not over €60,000 10 per cent Any amount over €60,000 10.5 per cent ”. Review of this Act and certain enactments of like character. 12.—
- a)in respect of the application of this section in the year 2013— (
- i)the Financial Emergency Measures in the Public Interest Act 2009 ; (
- ii)the Act of 2009; and (iii) the Act of 2010; (
- b)in respect of the application of this section in the year 2014 and subsequent years— (
- i)each of the enactments specified in paragraph (a), and (
- ii)this Act.
- a)carry out a review of the operation, effectiveness and impact of the relevant Acts, having regard to the overall economic conditions in the State and national competitiveness, (
- b)consider whether or not any of the provisions of the relevant Acts continue to be necessary having regard to the purposes of those Acts, the revenues of the State and State commitments in respect of public service pay and pensions, (
- c)make such findings as he or she thinks appropriate consequent on the review and consideration, and (
- d)cause a written report of his or her findings resulting from the review and consideration to be prepared and laid before each House of the Oireachtas.
- a)section 13 of the Financial Emergency Measures in the Public Interest Act 2009 ; (
- b)section 7 of the Act of 2009; and (
- c)section 10 of the Act of 2010.