DUBLIN – A comprehensive review of pension deductions is underway, affecting approximately 13,000 current and former civil servants and ministers. public Expenditure Minister Jack Chambers announced the assessment following the finding of irregularities within the National Shared Services Office (NSSO).

According to Mr. Chambers, “serious and systemic operational issues” within the NSSO came to light in late March, prompting further inquiry and the uncovering of additional problems.

The administrative errors within the NSSO have resulted in the “incorrect application of pension deductions” for members of the current Government, some members of previous governments, and a number of office holders.The miscalculations also extend to retired civil servants who were receiving allowances prior to their retirement.

NSSO Errors Impacting Payroll and Pensions

The NSSO is responsible for providing essential services to public service bodies,including human resources,payroll,pension administration,and finance management. The full scope of the payroll and pension issues, and the total number of individuals affected, is still under assessment.

The Cabinet received a briefing on the administrative errors within the NSSO on Tuesday. The individuals impacted fall into three main categories: current and former ministers and office holders, Civil Service retirees with work-sharing patterns, and retired senior civil servants.

the Department of Public Expenditure has clarified that the issues are not the fault of the individuals affected. The review will focus on a pool of 13,000 retired civil servants, although only a fraction are expected to be impacted by the anomaly.

One specific issue involves the miscalculation and under-payment of pensions for some work-sharing civil Service retirees who were receiving allowances prior to retirement within the last 20 years. Another issue pertains to the incorrect application of pension deductions for most members of the current Government, Ministers of State, some members of previous governments, and recent office holders.

this involves superannuation deductions and Additional Superannuation Contributions (ASC) related to salaries, allowances, and gifted income. The NSSO is initiating a process to contact ministers,explain the issue,and arrange for the recoupment of monies owed or the issuance of refunds,as appropriate.

The amounts involved vary, ranging from hundreds of euros to the low 30,000s of euros in terms of monies to be recouped.Some ministers are due refunds ranging from hundreds of euros up to the low 20,000s of euros.

Chargeable Excess Tax and Withholding Tax Issues

A third issue involves the administration of Chargeable Excess Tax (CET) and Withholding Tax (WHT) concerning senior grade Civil Service pensioners. Chargeable Excess Tax is levied on pension funds at retirement that exceed the Standard Fund Threshold, currently set at €2 million.

In a small number of cases, the NSSO did not correctly apply this tax. Similarly, withholding tax is deducted from retirement lump sums exceeding €200,000, primarily affecting those at principal officer level and above.

The NSSO has identified 30 cases related to CET and WHT, with liabilities ranging from a few hundred euros to €280,000.

Minister for Public Expenditure Jack Chambers described the issues brought to his attention as “completely unacceptable.”

He stated, “The NSSO has obligation for the essential function of the provision of pay and pensions to public and civil servants and it has failed in this essential duty.”

Mr. Chambers added, “I have instructed the CEO of the NSSO that the multiple errors must be corrected by the NSSO as a matter of urgency, particularly regarding the treatment of retirees who had been on a work-sharing pattern in the Civil Service.”