Senior officials from the Gardaí express frustration over recent tax changes on sizeable public sector pensions by the Government, implying that this may pose hurdles in filling numerous high-ranking Garda roles, including replacing Drew Harris as Garda Commissioner.
Nevertheless, the Policing Authority, responsible for nominating applicants for top-ranking roles and overseeing recruitment, states the high-paying nature of these roles should appeal to many top-ranking officers.
Sources within the Gardaí speculate that any veteran member seeking to step into Drew Harris’s shoes as Commissioner will be confronted with a minimum tax burden of €500,000 upon retirement, causing scepticism that any long-term Garda members would put their hat in the ring.
This brings forth the likelihood of applicants being sourced externally from the Republic or from individuals who have joined the Gardaí recently from other forces, as they won’t be affected by the immense tax burden. The position of Garda Commissioner is slated for advertisement during the first half of the forthcoming year. Tensions over this issue may rekindle soon as an Assistant Commissioner role becomes available.
Resolving the pension tax problem was seen as a solution to the embarrassing delay in filling the vacant deputy commissioner position. As a result, Assistant Commissioner Justin Kelly was declared the incumbent a year after the position was first listed.
The Government’s commitment was sufficient to encourage numerous high-level Garda members to apply for the deputy commissioner role. However, with the recent announcement of the pension tax alterations which were not as favourable as the officers had hoped, discontent has only amplified.
According to the Policing Authority, while it recognises the personal worries expressed by some members of the Garda, it does not hold sway over the Standard Fund Threshold (SFT). The Authority emphasises that the SFT rule applies across the board, affecting both public and private sector workers. How one is affected by the taxation matters tied to it is contingent upon their individual circumstances.
Furthermore, the Authority highlighted the high level of compensation that comes with the senior positions in An Garda Síochána, stating that these demanding and stimulating roles should appeal to a diverse array of candidates.
The main contention revolves around the SFT. As per this regulation, once a pension surpasses the €2 million mark, taxes of up to 72% are levied on any surplus, leading to substantial tax obligations upon retirement. This has resulted in a number of Garda officers retiring in the past few years with large financial liabilities, up to several hundred thousand euros.
However, following a review by Dr Donal de Buitléir, an independent expert, the Government announced a gradual increase in the SFT to €2.8 million. This increase is slated to commence in 2026, with an increment of €200,000 annually until 2029.
The Government also decided not to apply all the recommendations from the review in full. These included a proposed 10% reduction in the excess tax on hefty pensions, down from the current 40%.
Issuing a detailed response, the Department of Finance declared that the Minister took Dr Buitléir’s report into thorough consideration. Following an evaluation of the recommendations in the report, the Government decided to progressively implement changes to the SFT system. Some of these changes are set to be legislated this year, while the possibility of introducing other changes will be revisited in the future.
The Department of Justice emphasised that decisions pertaining to the SFT are under the jurisdiction of the Department of Finance.