Jack Chambers (Dublin West, Fianna Fail)
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169. To ask the Minister for Public Expenditure and Reform when the pro rata increases given to all public servants in April 2017 will be given to those who retired after March 2012; and if he will make a statement on the matter. [32249/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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It is assumed that the Deputy is referring to the €1,000 increase in 2017 applicable to public servants on annualised basic salaries up to €65,000 under the Financial Emergency Measures in the Public Interest Act 2015. This increase which, under FEMPI 2015, is to take effect from 1 September 2017, was advanced to 1 April 2017 for most qualifying public servants.

Increases to higher-value salaries above €65,000 on 1 April 2017, being part-restoration of the July 2013 pay cuts impacting such salaries, could not and did not have any effect on pensions in payment due to the grace period protection of such pensions under the FEMPI 2013 Act.

In that context, I would point out that section 6.2 of the proposed Public Service Stability Agreement 2018-2020, which was published at the conclusion of the public service pay talks, 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.

This means that for the duration of the proposed agreement, and subject to its ratification, public service pensions in payment will increase in line with pay increases where necessary to ensure that those pensions are equal to the pensions being awarded to same-grade retiring staff.