Written answers

Wednesday, 17 January 2024

Department of Public Expenditure and Reform

Public Sector Pensions

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry, Independent)
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373. To ask the Minister for Public Expenditure and Reform his views on a matter (details supplied); and if he will make a statement on the matter. [56329/23]

Photo of Paschal DonohoePaschal 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, a frequently used method of post-retirement pension adjustment for retirees public service pension schemes is known as ‘pay parity’. This method of pension adjustment was agreed by Government in 2017 to be used in relation to pre-existing (pre-2013) public service pension schemes. This was in the context of the Public Service Stability Agreement (PSSA) 2018-2020, and was extended under the successor pay agreement, Building Momentum 2021-2023, which expired at the end of 2023.

Pensions in payment under the Single Public Service Pension Scheme do not use this method, and 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.

Under the policy of pay parity, general round pay increases are passed on to pensions awarded under pre-existing public service schemes (pre-2013 pension schemes). Where applicable, salary increases 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.

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.

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.

Photo of Jackie CahillJackie Cahill (Tipperary, Fianna Fail)
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374. To ask the Minister for Public Expenditure and Reform for an update on his work to ensure that retired members of An Garda Síochána retain pension parity in line with increases awarded to serving members of An Garda Síochána; and if he will make a statement on the matter. [56339/23]

Photo of Paschal DonohoePaschal 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, a frequently used method of post-retirement pension adjustment for retirees public service pension schemes is known as ‘pay parity’. This method of pension adjustment was agreed by Government in 2017 to be used in relation to pre-existing (pre-2013) public service pension schemes. This was in the context of the Public Service Stability Agreement (PSSA) 2018-2020, and was extended under the successor pay agreement, Building Momentum 2021-2023, which expired at the end of 2023.

Pensions in payment under the Single Public Service Pension Scheme do not use this method, and 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.

Under the policy of pay parity, general round pay increases are passed on to pensions awarded under pre-existing public service schemes (pre-2013 pension schemes). Where applicable, salary increases 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.

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.

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.

Photo of Jackie CahillJackie Cahill (Tipperary, Fianna Fail)
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375. To ask the Minister for Public Expenditure and Reform to ensure that members of An Garda Síochána who retired after 1995 on full service receive the same rate of pension as those who retired prior to 1995; and if he will make a statement on the matter. [56340/23]

Photo of Paschal DonohoePaschal 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 certain criteria.

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