Vol. 397 No. 9
90 Mr. R. Bruton asked the Minister for Finance, in view of the fact that the national understanding provided a higher pay increase of 3 per cent for the first £120 in order to produce greater equity for the lower paid, the reason he has not applied this provision to Civil Service pensioners who, under the present arrangements, only receive the 3 per cent increase on the first £60 per week on their pension; and if he will make a statement on the matter.
Civil Service pensions are calculated and subsequently increased by reference to the rates of pay of serving officials. At retirement, a civil servant's pension is calculated at 1/80th of retiring salary for each year of service. Thereafter the pension is recalculated, on that same basis, with effect from the date on which subsequent salary increases are applied to the grade from which the civil servant retired.
Under the Programme for National Recovery, salary increases were applied with effect from 1 January in each of the years 1988, 1989 and 1990, as follows: 3 per cent on the first £120 of basic weekly salary and 2 per cent on any amount of basic weekly salary over £120.
In accordance with the normal practice, the pensions of retired civil servants were recalculated each January by reference to the revised salaries resulting from the increases under the programme.
