Written answers

Tuesday, 28 February 2017

Department of Public Expenditure and Reform

Public Sector Pay

Photo of Seán HaugheySeán Haughey (Dublin Bay North, Fianna Fail)
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484. To ask the Minister for Public Expenditure and Reform if retired public servants will be engaged with as part of the Public Sector Pay Commission; and if he will make a statement on the matter. [9849/17]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I refer the Deputy to my reply to Parliamentary Question No. 356 on 21 February 2017.

Under the remit set out in its terms of reference, the Public Service Pay Commission is tasked with reporting to Government on the pay of public servants, in the context of the Financial Emergency Measures in the Public Interest (FEMPI) Acts. The Commission's remit does not extend to considering the position of retired public servants.

The Public Service Pension Reduction (PSPR) applies as a progressively structured imposition on public service pensions in payment to retired public servants under terms set out in the Financial Emergency Measures in the Public Interest (FEMPI) Act  2010, as amended. PSPR is being significantly reversed in three stages under FEMPI 2015, with PSPR-affected pensioners getting pension increases via substantial restoration of the PSPR cuts on 1 January 2016, 1 January 2017 and 1 January 2018.  When fully rolled out from 1 January 2018, the changes will mean that all public service pensions with pre-PSPR values of up to €34,132 will be fully exempt from PSPR, while those pensioners not fully removed from the reach of PSPR will, in the majority of cases, benefit by €1,680 per year. The cost of these changes is estimated at about €90 million on a full-year basis from 2018.

Both I and officials of my Department have engaged with representatives of the Alliance of Retired Public Servants and will continue to do so, to ensure retired public servants and their representatives have a suitable and appropriate opportunity to articulate their issues and concerns in relation to public service pensions in payment. 

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