Enda Kenny (Mayo, Fine Gael) | Oireachtas source

I will come back to Deputy Martin on it. Deputy Howlin raised an important point. The report sets out a basic bedrock for valuable discussions and it is not for me to predetermine what the Government outcome on it might be. As I understand it, the next step is that officials from what was at one time Deputy Howlin's Department will engage with personnel in the public sector unions and the Minister will start the negotiations as soon as possible for an extension of the Lansdowne Road agreement.

In respect of pensions, the commission was tasked, first, with assessing the overall value of the public service remuneration package, which includes not only pay but pensions. That was provided for in the terms of reference of the commission. The work undertaken in that regard was both significant and important and I commend Mr. Duffy on his report. The approach of the Government to the issue of public service pensions is based on the fiscal sustainability of providing public service pensioners, current employees and future employees with public service pensions now and into the future. Deputy Howlin made a specific point on that. Both the State and its employees who are public servants have a shared interest in securing the sustainability of the pension system. Reform measures over the years such as integrating the occupational pension with the contributory State pension, extending the minimum retirement date from 60 to 65 and the introduction of a new career single public service pension scheme linked to the Civil Service pensions, CSP, age and the consumer price index, CPI, have contributed to the future sustainability of the public service occupational pension system.

However, we know from right across the economy that pensions have become increasingly expensive. The outputs from the commission confirm that and they reflect the values of the pension entitlements for various pension cohorts currently within the public service. The proposal by the commission that any agreed adjustment in pension contributions for public servants in respect of pension benefits should be linked with the discontinuance of the pension related deduction, PRD, imposed by the Financial Emergency Measures in the Public Interest, FEMPI, 2009 Act has been noted. Those are matters which will undoubtedly feature in the proposed public service pay discussions. That is best left for that engagement and interaction to take place.

The commission considers that the values identified for those on legacy standard accrual pension schemes and fast accrual schemes should be addressed by providing for an increased employee contribution for those who continue to benefit from such schemes. Rates of contribution are a matter for negotiation. While the commission considers it would be reasonable to apply any agreed adjustments in contributions in conjunction with the discontinuance of the pension related deduction currently imposed on public servants under the FEMPI Act, in the commission's view the value of public service pensions could be reasonably fixed in a range of 12% to 18% over private sector norms for pre-2013 standard-accrual pension schemes but that fast accrual schemes incur greater costs. The point raised by Deputy Howlin is an important one and I expect it will feature centrally in the discussions.

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