Vol. 483 No. 1
158 Mr. Callely asked the Minister for Finance the developments, if any, on pension increases for public service pensioners; the reference to this matter in the interim report of the Commission on Public Service Pensions; and if he will make a statement on the matter. [19780/97]
I announced on 4 November 1997 that the Government had decided that public servants who retired before the commencement dates of restructuring pay deals under the Programme for Competitiveness and Work should benefit from those pay deals on a parity basis subject to a minimum adjustment of 3 per cent in their pensions (or a 2 per cent in the case of those pensioners who have already received an advance payment of 1 per cent).
This is in line with the joint Fianna Fáil-Progressive Democrats pre-election press statement of 4 June 1997 which said, inter alia, the “in Government they will resolve the problems surrounding the pensions of retired public service staff” and they are “committed to restoring the link between pensions and increases in current rates of public sector pay” and the Government undertaking in its programme, Action Programme for the Millennium, to protect public service pensions.
In its interim report, the Commission on Public Service Pensions stressed that its comments on pensions increase policy are necessarily incomplete and preliminary. It emphasised that it would be considering this issue within the broad range of pension issues coming within its remit and on which it is scheduled to report to Government in 1998. Nevertheless, its preliminary view was that pensions should be increased in order to provide a secure and fair level of retirement income to pensioners. The Commission went on to suggest that there are three principal pension increase options available (in line with pay, in line with the CPI or in line with some other index appropriate to pensioners) and it will consider each of these in its final report.
The Government welcomes the commission's interim report and looks forward to receiving its final report next year.
159 Mr. Callely asked the Minister for Finance the current position regarding pension increases for public service pensioners who retired after the commencement dates of restructuring pay deals under the Programme for Competitiveness and Work; and if he will make a statement on the matter. [19781/97]
Public servants who retired after the commencement dates of the various PCW restructuring deals will be pensionable in the normal way and will benefit from parity as traditionally applied.
