Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

The Public Service Pay and Pension Act 2017 provides for the restoration of reductions made to public service pay and pensions by the Financial Emergency Measures in the Public Interest Acts 2010 to 2013. That process of restoration began on 1 January 2018 and is due to conclude by 1 July 2022.

In that regard, on 1 October 2020, public servants will receive a 2% pay increase by way of restoration. This will complete the pay restoration for public servants earning up to €70,000 per annum. Also on 1 October, reductions of between 5% and 8% made to certain allowances in 2010 will cease.

The Public Service Pay and Pensions Act 2017 provides that by end 2020, an order is made to restore, at a date to be decided, reductions made to certain public service pensions. In addition, section 20 of the Public Service Pay and Pensions Act 2017 provides explicitly that for certain public servants, pay restoration cannot be completed before 2 October 2021.

Under section 12 of the FEMPI Act 2013 the Minister for Public Expenditure and Reform is obliged, before 30 June each year, to submit a written report of the operation, effectiveness and impact of the FEMPI Acts of 2009, No. 2 of 2009, 2010 and 2013 to the Oireachtas. As part of that report, consideration must be given to whether or not any of the provisions of the relevant Acts continue to be necessary having regard to the purposes of those Acts, the revenues of the State and State commitments in respect of public service pay and pensions. Key considerations include the economic circumstances of the State, the budgetary outlook, debt, returns from taxation, Brexit and preparedness for other economic shocks.

The 2020 report that was laid before this House last June concluded, on the basis of the prevailing economic and fiscal outlook, that the timetable for pay and pensions restoration up to July 2022 continued to be appropriate and necessary. I assure the Deputy that the Government will continue to take the most appropriate course of action in this key policy area into the future.

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