Written answers

Thursday, 15 September 2022

Department of Communications, Climate Action and Environment

Public Sector Pensions

Photo of Neale RichmondNeale Richmond (Dublin Rathdown, Fine Gael)
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167. To ask the Minister for Communications, Climate Action and Environment if he has considered proposals that have been put to him to increase the pensions of those who worked for An Post; and if he will make a statement on the matter. [45240/22]

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Social Democrats)
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174. To ask the Minister for Communications, Climate Action and Environment the reason that a 2% increase for members of the An Post Superannuation Scheme has not been implemented; the timeline that An Post is working towards for implementation of this rate, which was effective from 1 January 2022; and if he will make a statement on the matter. [45391/22]

Photo of Patrick CostelloPatrick Costello (Dublin South Central, Green Party)
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175. To ask the Minister for Communications, Climate Action and Environment when he will sign-off on the agreed pay rise for An Post pensioners; and if he will make a statement on the matter. [45395/22]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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I propose to take Questions Nos. 167, 174 and 175 together.

I received a recommendation from my officials on 1 September and granted my consent on 2 September to the payment of an increase of 2% to An Post pensioners with effect from 1 January 2022. The consent of the Minister for Public Expenditure and Reform for the proposal was subsequently provided on 7 September. An Post has been made aware of this and has communicated with the Group of Unions.

An Post formally sought Ministerial approval on 4th May of this year, in accordance with the relevant Code of Practice from the Department of Public Expenditure and Reform (DPER), to increase pensions and deferred pensions (for members of the An Post superannuation scheme) by 2% per annum with effect from 1st January 2022 and up to a further 2% per annum with effect from 1st January 2023.

In line with the Code of Practice, NewERA’s views on the proposal were sought. This is to inform the business case required under DPER Circular 16/2021 (setting out the strategic, policy and financial rationale for providing the increases). The process is required to ensure good governance.

On 9 August NewERA provided  a recommendation on the proposals and my Department is obliged to be satisfied that the business case is justified,  before the relevant approvals are formally sought from DPER.

NewERA and the Departments worked as quickly as possible to finalise their assessment, in accordance with the governance requirements. This is the same procedure that must be followed for any State body.

In relation to the proposed increase for 2023, neither my Department nor DPER is legally permitted to grant pre-approval for a pension increase at this point. An Post has accordingly undertaken to submit that request in 2023 with the appropriate financial and actuarial reports required for further analysis.

When this is received the same process will have to be followed, with NewERA’s views and assessment by officials again being required for the 2023 proposed increase prior to the consent of both Ministers being sought.

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