Section modifies the definition of "pensioner" so references to the relevant date in that definition are read as 31 August 2014 or such other date as may be specified under section 9(1)(b)(ii) of the Financial Emergency Measures in the Public Interest Act 2013. It defines "relevant (post 29 February 2012) pensioner" as a person who became a pensioner after 29 February 2012 (or after the passing of the FEMPI Act 2013) but no later than 31 August 2014 (or such other specified date) whose annual pension exceeds €32,500; the ‘‘no later than 31 August 2014’’ limitation is disregarded for pensioners falling under paragraph (c) of the pensioner definition as applied.

Annualised public service pensions for relevant pensioners are reduced: from 1 January 2016 in accordance with Table A, from 1 January 2017 in accordance with Table B, and from 1 January 2018 in accordance with Table C. Table A: exempt up to €29,300, 3 per cent over €29,300–€60,000, 5 per cent over €60,000–€100,000, 8 per cent over €100,000. Table B: exempt up to €39,000, 2 per cent €39,000–€60,000, 5 per cent €60,000–€100,000, 8 per cent over €100,000. Table C: exempt up to €60,000, 1 per cent €60,000–€100,000, 6 per cent over €100,000. Reductions shall not reduce annualised pensions below €32,500; multiple pensions are aggregated; reductions apply before any pension adjustment order payment. The section operates notwithstanding any enactment, university statute, pension scheme, circular, instrument, written or verbal agreement, arrangement, understanding or expectation.