Robert Troy (Longford-Westmeath, Fianna Fail)
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177. To ask the Minister for Public Expenditure and Reform if the increase scheduled in public service pensions from October 2018 will be issued without delay; and if he will make a statement on the matter. [41740/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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I wish to advise the Deputy that in January this year my Department issued DPER Circular 02/2018 authorising pension increases to qualifying public service pensions of certain public service pay increases, and giving guidance on the implementation of those pension increases. The pay increases involved are those covering the 2018 to 2020 period under the Public Service Stability Agreement (PSSA), as legislated for in the Public Service Pay and Pensions Act 2017. The pay increase of 1% of salary on 1 October 2018 is the second such increase, the first, also 1%, having come into effect on 1 January 2018.

The principle of pay parity underlies the pension increases sanctioned in the Circular. This means that pay increases agreed as part of the PSSA are to be passed on to pension recipients to bring the salary on which their pension is based up to the current salary of those still serving after the pay increases are applied. It is important to note that not all pension recipients will be due these increases. This is because of protections in place (known as ‘grace periods’) for public servants retiring after the application of pay cuts under the FEMPI legislation, whereby their pensions were calculated using the higher pay rates that were in effect prior to the application of the pay cuts.

It is a matter for the large number of public service pension payroll managers in the various sectors of the public service to implement Circular 02/2018. I understand that work is underway to apply the pay increases I have mentioned to those qualifying pensions in payment that have not yet benefitted from such increases, and that this will include the calculation and payment of arrears as appropriate.