Dáil Éireann debate -
Wednesday, 5 Mar 1997

Vol. 475 No. 8

Written Answers. - State and Semi-State Pensions.

Noel Ahern

Question:

78 Mr. N. Ahern asked the Minister for Finance whether the pensions of all ex-State and semi-State employees will continue to be based on the full equivalent salary scale including productivity or other payments of existing staff; the talks, if any, which have taken place with the ICTU to reduce pensions or base them on salary levels minus productivity payments; and if he will make a statement on the matter. [6192/97]

Minister for Finance (Mr. Quinn)

Pension increases in commercial semi-State bodies are primarily a matter for the body itself. As regards the area for which I have direct responsibility, the civil and public service, the position has been that, since the 1960s, pension increases have been linked to pay. In practice, pensions are calculated and subsequently increased by reference to the rates of pay of serving officials. Full parity has applied, on this basis, since 1986.

As regards the restructuring deals currently being negotiated under the PCW, they are, in the main, being dealt with under Option A of Clause 2 (iii) of Annex I to the PCW which requires "changes in structures, work practices or other conditions of service" and "flexibility and change" by employees. The various Option A deals differ widely from each other in their structure and the outcome of talks has still to be finalised in the case of several major public service groups.

Pending completion of the latter and consideration of the pensions issue generally, I am not in a position, at this stage, to set out the effect of such deals on pensions in payment in respect of former public servants. I should say, however, that the issue of pensions increases in the foregoing context is the subject of ongoing discussions with the public services committee of ICTU.