Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Question 3: To ask the Minister for Public Expenditure and Reform in view of the fact that a pension levy was imposed on the income of ordinary public sector workers to secure their pension entitlements, if it is his intention to retain their current retirement age; if he will give an assurance that their current pension entitlements will be maintained; and if he will make a statement on the matter. [20609/11]

Brendan Howlin (Wexford, Labour)
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The Financial Emergency Measures in the Public Interest Act 2009 introduced a number of measures in the public interest. Section 2 of the Act provided for a pension-related deduction, PRD, to be made from the remuneration of public servants who are members of public service pension schemes or who have analogous arrangements. On average, this reduced pay by approximately 7%. The PRD was introduced in the context of the priority being given to the stabilisation of the public finances and the serious crisis facing the State. The deduction took account of the fact that public servants enjoyed relatively good pension provision in comparison with other workers.

The Croke Park agreement sets out our approach on the pension arrangements of existing public servants. The agreement makes no changes to the pension terms of serving staff. However, it provides for discussions to take place on the method of determining pension increases for existing public servants when they retire. A clarification to the agreement further provides that there will be no change in this method during the lifetime of the agreement.

The Government is preparing a single pension scheme for new entrants to the public service. This will provide career-average defined benefit pensions, inflation linkage of benefits and set pension age equal to the State pension age.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Does the Minister agree that the cut of 7% in the incomes of public sector workers as a result of the pension levy together with the universal social charge were a gross injustice, given that whatever flaws there may be in the public service, it was not public sector workers who created the economic crisis? In the context of pay, public sector workers have taken a massive hit with the result that many cannot meet their mortgage repayments and are struggling and it would be of great comfort to them to know they will not be faced with a further hit? As Deputy Mary Lou McDonald stated, the Minister outlined that there would be no tax increases or social welfare cuts, one would say there would be a fear that public sector workers might yet again be a target for possible cuts or diminutions in their conditions. I wish to ask a straight question, as it is not clear from the answer to the question, given that public sector workers have already paid the pension levies to give them their entitlements to a pension, will the age that public sector workers retire be retained or raised in line with that proposed for other workers? Does the Minister intend to raise the age of retirement for public sector workers and must they work for a longer period, having already paid the levies?

Brendan Howlin (Wexford, Labour)
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I agree with the Deputy to the extent that a big burden is being carried by a whole cross-section of our community, public servants, workers and all taxpayers on foot of disastrous decisions that were made by bankers and policy makers in the State. It is not fair but it is necessary in order for the country to survive and to thrive and there is no way that can be 'magicked' away. Whether it is deemed to be fair or unfair, it is a burden that the population must carry because we are determined to bring about solvency again.

To answer the Deputy's specific question, the Croke Park agreement has been accepted and is being implemented by the Government. Under the Croke Park agreement, there are conditionalities that will require fundamental change in the way that public services are delivered and a downsizing of the public service. If those conditionalities that are set out in the agreement are met, the Government side and the employers have said that it will not reduce pay or have compulsory redundancies. Also implicit in that agreement is that the one potential for negotiation which is to look at increases in pension to be linked to inflation rather than linked to the grade at which the person retired. Those negotiations will not be opened until after the conclusion of the agreement in 2014.

I will be bringing in a pensions Bill, as I have indicated, to link the retirement age of civil servants in the future, not of incumbents, to the retirement age of the State pension generally.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Is it fair or even prudent, when there is significant unemployment and graduates coming out of university not being able to find jobs, to make the working life longer for people employed in the public sector or elsewhere, instead of maintaining the existing retirement age as a consequence of which there would be more jobs for the young qualifying graduates?

Michael McCarthy (Cork South West, Labour)
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Our time is up.