Written answers

Wednesday, 1 February 2017

Department of Public Expenditure and Reform

Pension Provisions

Photo of Bobby AylwardBobby Aylward (Carlow-Kilkenny, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

243. To ask the Minister for Public Expenditure and Reform when he will commence negotiations on a successor to the Lansdowne Road agreement; if representatives of retired public servants will be included in such negotiations, having been excluded as part of the Haddington Road process; if he envisages any reduction or reversal to the current de facto pension cut of 5.5% for public sector workers who retired from March 2012 onward compared with those who retired previously; and if he will make a statement on the matter. [4873/17]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Preparatory work for Phase 2 of the Government's planned engagement on pay with the public service unions in 2017 is already underway, with parties making submissions to the Public Service Pay Commission. An initial report from the Commission is expected in Q2 2017. Once this report is available, the Government intends to initiate negotiations on a successor to the Lansdowne Road Agreement ahead of Budget 2018 considerations. These negotiations will be between the Government as employer and the public service trade unions and representative associations on behalf of public service workers. In that employer-employee negotiation context, the issue of pensioner representation in the talks does not arise.

The interests and concerns of public service pensioners on public service pension issues have been regularly articulated in meetings between the Alliance of Retired Public Servants and my Department. This engagement has also included meetings between the Alliance and I and my predecessor as Minister. On that basis I believe the Alliance have had, and continue to be afforded, a meaningful and direct means of articulating their concerns in relation to pensions and related issues.

This engagement by the Alliance over several years past has been reflected in legislated pension improvements for many public service pensioners. Specifically, many such pensioners are benefitting significantly from the substantial reversal of the Public Service Pension Reduction (PSPR) based cuts to public service pensions imposed by way of the FEMPI legislation. This reversal, which will incur a cost estimated at €90 million on a full-year basis in 2018, is happening in three stages under FEMPI 2015, with PSPR-affected pensioners getting pension increases via PSPR amelioration on 1 January 2016, 1 January 2017 and 1 January 2018.

As I have previously indicated, it will be for Government in due course to consider the issue of how to adjust the post-award value of public service pensions through appropriate pay or other linkages, as we move beyond FEMPI and PSPR restoration towards more normal pay and pension setting conditions in the public service.

In addition, I would also point out that public service pensions payable to persons who retired before March 2012, although acknowledged to be based on higher salaries payable before the 2010 public service pay reductions, are subject to a more onerous PSPR treatment than that applying to later retirees.

Comments

No comments

Log in or join to post a public comment.