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

I am acutely aware of the increases in inflation in recent months and the challenges faced by households, particularly in terms of energy costs. That is why a package of measures was announced by the Government this year dealing with the energy costs challenges faced by households.

The Deputy has raised the specific issue of pension increases. As he may be aware, the most recent guidance and instructions on this matter for most retired public servants is outlined in Department of Public Expenditure and Reform circular 10/2021, which is available on the gov.iewebsite. Under the existing policy, pay increases under Building Momentum — A New Public Service Agreement 2021-2022 will be passed on to those pensions awarded under the pre-existing public service schemes where the salary on which a pension is based does not exceed the salary of serving staff at the same grade and scale point after the pay increases have been applied.

In practice this means that the vast majority of retired members generally receive pension increases in line with the pay increases due to their peers in employment. The next increase of 1% is due in October under the current deal, which is the subject of renegotiation at the moment, as the Deputy knows.

The position is different with wider public sector pension issues involving retired members of pension schemes in the commercial semi-State bodies. In the first instance, consideration of discretionary pension increases is a matter for review by the key stakeholders such as the parent Department, the scheme trustees and the relevant employer, in relation to each pension scheme. The understandable desire of retired scheme members of these schemes for pension increases to deal with inflation challenges must be balanced with the overall protection of pension benefits for all members of such schemes and with the long-term survival of schemes, particularly given the historical financial challenges which these schemes have had to face. The position of each commercial semi-State body is a matter for the relevant sectoral Department with primary responsibility for each of the bodies.

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