912. Deputy Willie O'Dea asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation if he will consider making changes to the occupational supplementary pension (OSP) to allow a retiree to take up some employment without the OSP being impacted, in order to allow the retiree to still contribute to society and earn some extra income; and if he will make a statement on the matter. [60013/26]

Occupational Supplementary Pensions (OSP) are a feature of pre-existing public service pension schemes, where member benefits are integrated with social insurance benefits. The purpose of an OSP is to ensure that the overall pension package (occupational pension, and social insurance benefits) of the individual is no less than the pension they would have received, had their pension been calculated on a non-integrated basis. However, payment of an OSP is not automatic, and is subject to the individual meeting the relevant eligibility criteria.

Prior to the release of Circular 12/2024 "Arrangement for Occupational Supplementary Pensions (OSP)", an OSP was not payable where an individual availed of any form of paid employment. Following extensive review of OSP policy and engagement with various stakeholders, this criteria was amended under Circular 12/2024, to allow for the payment of a partial OSP on a pro-rata basis, where the individual is engaged in part-time employment.

It is the responsibility of the individual to decide whether it is more beneficial to them to avail of part-time work and a pro-rata OSP, or to avail of the full OSP potentially payable to them.