Éamon Ó Cuív (Galway West, Fianna Fail)
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372. To ask the Minister for Public Expenditure and Reform if retired public servants will be represented at the pay talks by associations representing specifically retired public servants; if an organisation (details supplied) are or will be participants in the talks; and if he will make a statement on the matter. [27275/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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When inviting the Public Services Committee of the Irish Congress of Trade Unions last month to the public service pay talks, which have now concluded, I indicated that a separate process of consultation would take place with an association representing public service pensioners. That process is ongoing, and my officials met recently with representatives of the Alliance of Retired Public Servants, who articulated the concerns and interests of public service pensioners in relation the impact of the Financial Emergency Measures in the Public Interest (FEMPI) legislation on pensions in payment through the operation of the Public Service Pension Reduction (PSPR) and related matters. A further meeting is planned. 

The period since the Alliance’s engagement with my Department commenced in 2013 has been marked by notable legislated pension improvements for many public service pensioners. Specifically, public service pensioners are benefitting significantly from the substantial reversal of the cuts to public service pensions above specified thresholds which were originally imposed by way of the Public Service Pension Reduction (PSPR) under the FEMPI legislation.  

I and my Department are fully committed to maintaining the well-established dialogue with the Alliance of Retired Public Servants. Through ongoing recourse to that dialogue process, I believe that retired public servants and their representatives can be confident that their pension concerns will receive full and proper consideration as they have done in the past.

Clare Daly (Dublin Fingal, Independent)
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373. To ask the Minister for Public Expenditure and Reform his plans regarding retaining the link between occupational pensions received by public service pensioners and the wages or salary of the person's grade at retirement. [27292/17]

Eamon Scanlon (Sligo-Leitrim, Fianna Fail)
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378. To ask the Minister for Public Expenditure and Reform his plans to restore pro rata pension increases for retired public sector workers; and if he will make a statement on the matter. [27394/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 373 and 378 together.

In the past, the occupational pensions of public service pensioners were generally adjusted in line with changes in the wages or salary of the pensioner's grade at retirement. Sometimes referred to as "pay parity", this non-statutory linkage lapsed in 2010, when the values of pensions in payment were left unchanged notwithstanding salary cuts at the beginning of that year which affected all public servants under the financial emergency legislation.

Due to a grace period associated with the 2010 salary cuts, public servants, who retired in the 26 months following those cuts, i.e. in the period to end-February 2012, had their pensions based on the higher pre-cut salary levels. This has lead to the current situation whereby post February-2012 retirees, on a like-for-like basis, mostly receive lower pensions than their earlier-retired counterparts.

In addition, since the beginning of 2011 a progressively-structured "Public Service Pension Reduction" (PSPR) has decreased the values of public service pensions above specified thresholds. A significant part-reversal or unwinding of PSPR is under way as set out in the Financial Emergency Measures in the Public Interest Act 2015.

The lapsing of pay parity along with the pension differential arising between pre and post-2012 retirees, have created the conditions under which, as we move beyond "FEMPI" legislation and the progressive removal of the Public Service Pension Reduction (PSPR) towards more normal pay and pension setting conditions in the public service, the issue of how to adjust the post-award value of public service pensions, through appropriate pay or other linkages has required consideration.

In this context, Section 6.2 of the proposed Public Service Stability Agreement 2018-2020, which was published last week, indicates that, over the duration of that agreement if ratified, policy on public service pensions in payment will be guided by the following three elements:

First, the need to adopt an equitable approach to the various public service pensioner cohorts differentiated by date of retirement (in particular pre and post end-February 2012) is affirmed.

Second, for those who retired or will retire post end-February 2012, to the extent that they retired on reduced salaries for pension award purposes, they will receive pension increases in line with pay increases received by their peers currently in employment in accordance with the terms of the collective agreement.

Third, when alignment is achieved between pre and post end-February 2012 pensioners, as will happen progressively for salary ranges up to €70,000 in 2020 under the proposed collective agreement, pay increases will continue to benefit pensions in payment for the duration of the agreement.