James Lawless (Kildare North, Fianna Fail) | Oireachtas source

I thank both Deputies for their kind wishes. I appreciate them. In response to Deputy Sherlock, John, Billy and Auntie Alice O'Brien and all the Mitchelstown clan are very proud indeed of my appointment. I thank him for acknowledging them.

I welcome the opportunity to outline the position on this matter. I have not had sight of the response the Minister of State, Deputy O'Donnell, gave so I will outline my position, subject to revisiting it in due course. I look forward to engaging with the Deputies on the matter as it progresses.

Under section 46 of the Postal and Telecommunications Services Act 1983, the Minister for the Environment, Climate and Communications, with the concurrence of the Minister for Public Expenditure, NDP Delivery and Reform, approves any superannuation schemes submitted by An Post. The operation of the schemes is a matter between the management of An Post, staff representatives and the trustees of the schemes. The 1983 Act requires that, for civil servants who transferred to An Post on vesting day, 1 January 1984, An Post’s pension scheme must provide not less favourable conditions than those to which the members of staff were entitled immediately before the vesting day. Section 46 sets a minimum level of parity between the An Post scheme and the scheme that applied to staff members of the Department of Posts and Telegraphs, as it was on the day before vesting day. Section 46 does not provide that the conditions in the An Post scheme must continue to match any subsequent improvements in pension conditions for the award of pension increases in the Civil Service. It was and is intended to be a transitional provision to ensure that transferring employees were no worse off on vesting day than they were immediately before the transfer. It does not give rise to an entitlement to pension increases other than those granted in accordance with the An Post superannuation scheme rules. Prior to vesting day, any increases to pensions in payment were discretionary. They were awarded at the discretion of the Minister for Finance. The rules of the scheme accurately reflect the pre-vesting day discretionary nature of pension increases in the public sector. The pension increase rule has remained unaltered since the commencement of the scheme.

An Post wrote to the Department on 3 April 2024 with an updated consent request seeking approval to increase pensions payments for 80 members of the An Post superannuation scheme who are aligned to the principal officer grade in the Civil Service. The 80 members in this cohort were former civil servants and are referred to collectively as the pre-1984 pensioners. An Post also wrote to the Department on 21 June 2024, seeking approval to increase pensions in payment for members of the An Post superannuation scheme by 2% per annum, with effect from 1 January 2024. In accordance with the code of practice for the governance of State bodies, An Post must seek ministerial approval for all proposals to increase pensions and deferred pensions for members of the An Post superannuation scheme. As per Circular 16/2021, all such proposals require NewERA’s views, as well as a business case setting out the strategic, policy and financial rationale for the proposed increase. Proposals should be submitted well in advance of any decision to implement changes, in acknowledgement of the necessary processes that must be completed and to ensure that pension increases are not unduly delayed. The time taken for the pension approval process is necessary to ensure that robust governance procedures are in place.

Following receipt of both proposals from An Post, the standard process is being followed. NewERA’s views and assessment are being sought as part of that consideration and the Ministers will then consider those proposals. There has been ongoing engagement with An Post on the matter. This is the same procedure that must be followed for any State body. It is not possible, therefore, at this point, to set out the specific timeframe within which the decision-making process will be concluded. However, I note the points made by the two Deputies and the understandable great interest and urgency of members of those schemes in it being expedited.

See this speech in context