Joe Higgins (Dublin West, Socialist Party)
Link to this: Individually | In context

Question 236: To ask the Minister for Communications, Marine and Natural Resources the steps he is taking to ensure that An Post pensioners receive the increases in their pensions. [14121/05]

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

The authority to implement pension increases was delegated to An Post, subject to certain conditions, as this activity was considered part of the day-to-day operations of the company. This allowed the company to implement pension increases following pay increases to employees. However, decisions outside the scope of the original delegated authority still require the consent of the Ministers for Communications, Marine and Natural Resources and Finance.

Following a proposal from the board of An Post to amend the company's existing pension increase terms in this instance, my Department and the Department of Finance undertook a review of the situation. While I fully empathise with An Post pensioners for the position in which they find themselves due to the failure of An Post management and unions to reach agreement on implementation of the recovery strategy, the wider overall policy issues raised by the proposal from An Post must also be considered.

The existing terms of the An Post superannuation scheme provide for pay parity, that is, that pensions are increased in line with the pay of serving staff. This is in accordance with public service defined benefit pension increase policy generally, pay parity being an integral and well established practice widely applied in public service defined benefit pension schemes.

Unfortunately, following examination of the issue and taking into consideration the implications of providing a precedent which could impact adversely on the cost of pensions in the wider public sector and the existing practice of pay parity, increases to pensioners of An Post, linked to increases under Sustaining Progress, are not possible at this time. While I understand the frustration of An Post pensioners with the situation, agreement in partnership with An Post unions to the restructuring plan aimed at securing the future of the company, and indeed providing sustainable long-term employment for An Post workers, is the way forward.

I have urged the unions and the management of An Post to fully engage with the industrial relations mechanisms of the State to agree a way forward for the future of the company and all stakeholders in this matter.

James Breen (Clare, Independent)
Link to this: Individually | In context

Question 237: To ask the Minister for Communications, Marine and Natural Resources if he will review the pension rights of a person (details supplied) in County Clare in order to reflect public service conditions; and if he will make a statement on the matter. [14151/05]

Pat Gallagher (Donegal South West, Fianna Fail)
Link to this: Individually | In context

The Department has been informed by Shannon Foynes Port Company, that the person concerned was a licensed pilot of the former pilotage authority for the Shannon Estuary. He is in receipt of pension benefits from a pilots' benefit fund established on foot of a by-law made under the Pilotage Act 1913 which continued in existence under section 41 of the Harbours Act 1996. Section 41 provides, inter alia, that the company shall ensure that persons in receipt of benefits under such a fund shall continue to receive benefits. Such receipt is subject to the same terms and conditions to which the said fund provided that the receipt of the said benefits was to be subject.

The person concerned has raised the issue of his pension benefits not being index linked. However, the company informs the Department that the by-law which established the fund did not provide for pension benefits to be index linked. The company has confirmed that the pilots' benefit fund is being executed in accordance with the relevant provisions of section 41 of the Harbours Act 1996.