Duncan Smith (Dublin Fingal, Labour) | Oireachtas source

I congratulate the Minister of State on his elevation and new appointment.

Deputy Sherlock and I are here 12 months after bringing this issue up previously regarding the treatment of pensioners in An Post. It is always topical and it has come to our attention again, given developments in pay increases for An Post workers announced in recent months and other issues. What is rooted in all of this is the exceptionalism with which pensioners in An Post are being treated. This year, the CWU reached a two-year pay agreement with An Post that provided for an 8% increase, paid to workers in three phases, which is most welcome. However, only 2% of the 1 January 2024 increase will be pensionable for current workers and the extent to which the 2025 will be pensionable is uncertain. Why the pensioners are angry is there is absolutely no news about if or when the minimal increases in pensionable pay will be reflected in their own pensions. Why are they angry? They are angry because section 46 of the Postal and Telecommunications Services Act 1983 provided guarantees that civil servants transferring to An Post would continue to have their pensions calculated in accordance with civil service rules. This is not happening. In a report to the High Court, Vodafone Ireland Limited v. Farrell & Ors, Mr. Paul Kenny, the former Pensions Ombudsman stated:

My understanding based on my experience is that ... pension increases in the civil service were regarded as, and were in practice, "automatic". That is to say, a Minister has never exercised his or her discretion in any way other than to grant increases in line with any salary increases.

An Post has repudiated such pay parity increases since 2008. Again, why the exceptionalism? There is a statutory obligation regarding mandatory increases in preserved pensions outlined in section 33 of the Pensions Act 1990, to revalue preserved pensions by the change in CPI, subject to a cap of 4%. The Minister for Social Protection has exempted the An Post main superannuation scheme from these obligations. Why is the Minister exempting An Post from its obligations when An Post increases pensions by less than a percentage point of the regulations?

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