Alan Dillon (Mayo, Fine Gael)
Link to this: Individually | In context | Oireachtas source

245. To ask the Minister for Public Expenditure and Reform the level of increases that public sector pensioners will receive following the Government pay deal review; and if he will outline details of the lump-sum that will be backdated to February 2022 for public sector pensioners. [58848/22]

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

As the Deputy will be aware, as the Minister for Public Expenditure and Reform, I have over-arching responsibility for public service pension policy and hold an approval role for certain pension schemes in the wider public sector.

Under the review of, and subsequent extension to the Building Momentum Agreement, as agreed earlier this year, pay increases have been awarded to public servants on 2 February 2022. This agreement does not apply to organisations in the wider public sector.

In accordance with the agreement, pay increases are due to public service pensioners who are members of pre-existing public service pension schemes (non-Single Scheme) on the principle of ‘pay parity’. This means in general that, as the pay allocated for a role increases, so will the associated pensions of retirees who formerly occupied that role. This is excepting the portion of an individual’s pension that is based on pensionable remuneration that is higher than the current pay rate for the role.

Therefore, the rate of pension increase for 2 February 2022 mirrors the pay increase rate, and is a 3% increase. This applies as follows:

- For public servants who had retired before 2 February 2022 and who are members of a pre-existing scheme, the pension they receive from their public service pension scheme should increase by 3% going forward. However, as this is a retrospective increase, a once-off payment of pension arrears is expected for this cohort.

- For public servants who had retired before 2 February 2022 and who are members of the Single Public Service Pension Scheme, their lump sum and pension remains unchanged as a result of the agreement.

- For all public servants who retired on or after 2 February 2022, their pension and lump sum should both be recalculated as necessary in accordance with scheme rules, based on the 3% increase to their pay from that date. A once-off payment of pension arrears may apply for this cohort, and arrears arising from recalculation of their lump sum gratuity may also be payable.

The calculation of pension benefits for public servants varies depending on the pension scheme they are a member of, as well as other factors making up their individual careers in the public service.