Paschal Donohoe (Dublin Central, Fine Gael)
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As Minister for Public Expenditure, NDP Delivery and Reform, I have overarching responsibility for public service pension policy, including in relation to pension increases in the public service.

As the Deputy may be aware, the current method of post-retirement pension adjustment for retirees of pre-existing (pre-2013) public service pension schemes is known as ‘pay parity’.

This method of pension adjustment was agreed by Government in 2017 the context of the Public Service Stability Agreement (PSSA) 2018-2020, and was extended under the successor pay agreement, Building Momentum 2021-2023, which is due to expire at the end of this year.

Under the current policy, pay increases granted under those agreements fall to be passed on to pensions awarded under pre-existing public service schemes where the salary on which the pension is based is lower than or equal to the salary of serving staff with the same grade and scale point, after the pay increase has been applied. If it qualifies, the pension is eligible for an increase to the extent that this will ensure alignment with the pay of serving staff. This means that, in general, a salary increase awarded to serving public servants will be passed through to the pensions of those persons who have retired on an equivalent grade and pay scale point.

While I have overall responsibility for pension increase policy, responsibility for implementing pension increases, where they fall due, rests with individual public service bodies and their associated pension administrator.

Pensions in payment under the Single Public Service Pension Scheme are adjusted in line with increases in the Consumer Price Index (CPI), as provided for under section 40 of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012.

As the Deputy may be aware, confidential negotiations are currently ongoing in relation to the successor to the Building Momentum agreement. These public service pay talks are attended by Trade Unions and Staff Representative Associations, who represent current public service employees.

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy may be aware, I have overall policy responsibility in relation to public service occupational pension schemes payable to retired public servants.

For all new entrants to the public service (including members of An Garda Síochána) on or after 6 April 1995 (the date of introduction of full social insurance for public servants who now pay Class A PRSI) and before 1 January 2013 (the date of introduction of the Single Public Service Pensions Scheme) pension payment comprises of three components:

1. A Public Service Occupational Pension payable by the public service employer;

2. Social Insurance benefit(s) payable, subject to eligibility, by the Department of Social Protection (DSP) and;

3. Where the Social Insurance benefit payable does not equate to the full rate of State Pension Contributory (SPC), an occupational supplementary pension may be payable by the public service employer subject to an individual meeting eligibility criteria.

An occupational supplementary pension seeks to make up the difference between the occupational pension which would have been payable had that pension not been integrated, and the occupational pension in payment when combined with any Social Insurance Benefits in payment. The payment of an occupational supplementary pension is not automatic and is subject to an individual meeting the following criteria:

• The retired public servant is not in paid employment;
• The retired public servant, due to no fault of their own, fails to qualify for Social Insurance benefit(s) or qualifies for a benefit at less that the value of the SPC; and
• The retired public servant must have reached minimum pension age or retired on grounds of ill-health.

The second condition is important to ensure no duplication of payments from public funds. To verify this condition, prior to payment of the Occupational Supplementary Pension, a retired public servant must engage with the DSP and obtain proof that they have exhausted any relevant benefits for which they may be eligible under the social insurance system. The rules surrounding qualifying for a Social Insurance benefit are a matter for the DSP.

My Department is aware that there are some issues concerning the procedures for qualifying for the payment of an Occupational Supplementary Pension and we are liaising with the DSP and other key stakeholders to review the processes involved and establish if a more efficient and streamlined approach is possible.