Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

396. To ask the Minister for Public Expenditure and Reform the estimated annual cost over the next four years of the public pension contribution reforms agreed in June 2017; and if he will make a statement on the matter. [28418/17]

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

397. To ask the Minister for Public Expenditure and Reform the estimated annual cost over the next four years of the public sector pay changes agreed with unions in June 2017; and if he will make a statement on the matter. [28419/17]

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

I propose to take Questions Nos. 396 and 397 together.

The proposed Agreement runs from 2018- 2020 and has a total cost over that period of €887 million, with annual costs as follows:

2018: €178 million

2019: €370 million

2020: €339 million

The pay measures also have a carry-over cost into 2021 of €227 million.

The costs of the proposed pension contribution reforms are included in the annual cost outlined above. The yield from PRD will fall from over €700 million at present to some €550 million in 2020 which will now become a permanent additional pension contribution. These reforms will make a major contribution to the future sustainability of public service pensions.