940. Deputy Niall Collins asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation his views on matters raised in correspondence (details supplied); and if he will make a statement on the matter. [60401/26]

983. Deputy Niall Collins asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation for his views on matters raised in correspondence (details supplied); and if he will make a statement on the matter. [63032/26]

I propose to take Questions Nos. 940 and 983 together.

Occupational Supplementary Pensions (OSP) are a feature of pre-existing public service pension schemes. Public servants with integrated pensions have an overall pension package which is comprised of their occupational pension, the State Pension Contributory (SPC)/other relevant social insurance benefits and, where eligible, an OSP. Public servants with non-integrated pensions, such as those who pay Class D PRSI, do not have their pension benefits integrated with the social insurance as they are not eligible for the SPC or other social insurance benefits. In this regard their entire pension package is received via their occupational pension.

An OSP may be payable where a retired public servant, in receipt of an integrated pension, does not qualify for the SPC upon retirement; or where they qualify for the SPC, or another social insurance benefit, at less than the full rate of SPC. Payment of an OSP is not automatic and is subject to the individual meeting the relevant eligibility criteria. The OSP only applies to public service retirees who have been members of a pre-existing public service pension scheme (non-Single Scheme) and who are fully insured - i.e. those who pay Class A PRSI or those appointed on/after 1 April 2004 who pay Class H PRSI and in general, where appointed before 1 January 2013.

One of the criteria which must be met is that the individual must be fully retired. However, similar to abatement, where a retired public servant returns to work part-time, OSP is calculated on pro-rata basis.

When comparing the overall pension package of the individual who is fully insured (integrated) with the pension package of a colleague who is not fully insured (non-integrated) where either or both return to work, one must examine all factors.

In this regard, it should be noted that abatement, which applies where a retired public servant is re-employed in the public service, is applied to the occupational pension but does not apply to any social insurance benefit in payment or associated OSP. Thus, while the fully insured pensioner may lose a portion of their OSP and be subject to abatement on a smaller occupational pension; the non-integrated pensioner’s pension is fully subject to abatement.

Accordingly, the OSP is not subject to abatement, however an OSP is reduced on a pro-rata basis where the recipient is engaged in part-time employment. For example, where an individual works one day a week in a normal five-day working week, they will be deemed to be working 20% and the OSP payable would be reduced by 20%.

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 criterion 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.