Alan Dillon (Mayo, Fine Gael) | Oireachtas source

The Senator’s arguments which she presented here are fully valid about those who feel less well-off about any budgetary measures around the State pension. It is not directly linked to their level of income after retirement and they do feel aggrieved about that. However, as part of the public service wage indexation, they do benefit from any additional public pay sector deals which may have a positive impact on their pensions.

The integration of defined-benefit public service pension schemes with social welfare entitlements plays a crucial role in safeguarding the financial well-being of retired public servants. We cannot take away from the enormous service many have given to this State and they should be supported. The approach we take ensures that pensions that are fully insured under class A PRSI can benefit both from their occupational pensions and State pension enhancing their overall retirement income.

The system is designed to provide a fair and equitable framework. I will bring the matter back to the Minister. It is important that it is raised again in terms of fairness where pension adjustments reflect changes in the State pension rate and provide stability for retirees.Even in the past two budgets, this Government has increased the pension by €24, with an increase of €12 in each budget cycle. That has been of enormous benefit to those who are still being challenged with the cost-of-living measures. As increases are made in social welfare provisions, it is vital those increases flow to the public service pension in order that retired public servants enjoy the benefits of their service without the fear of a reduction in their overall income. As I said, the wage indexation of occupation and pensions under the current pay deal reinforces that commitment.