Vol. 500 No. 7
289 Mrs. B. Moynihan-Cronin asked the Minister for Finance if his attention has been drawn to the concern that prevails among public service pensioners and widows of deceased public servants in relation to their pension structure; if he will allay these fears by clearing stating that the traditional policy of pay and pension parity is, and will remain, Government policy; and if he will make a statement on the matter. [5198/99]
I would expect public service pensioners to have an interest in the outcome of the deliberations of the Commission on Public Service Pensions which is due to report within the next few months. As the Deputy is aware, the Commission was established in 1996 to carry out a fundamental review of public service pensions arrangements. Pensions increases policy is clearly an important element of the pensions system and as such it is appropriate for the Commission to examine it as an integral part of its review.
As far as Government policy is concerned, the Government undertook – in its Action Programme for the Millennium – to protect public service pensions. On foot of this commitment, I announced in November 1997 that public servants who retired before the commencement dates of restructuring pay deals under the Programme for Competitiveness and Work would benefit from those pay deals on a parity basis subject to a minimum adjustment on 3 per cent in their pensions, or 2 per cent in the case of those pensioners who had already received an advance payment of 1 per cent. The announcement also indicated that the decision to apply parity with a floor increase in the context of PCW restructuring deals was a one-off measure which was designed to meet the Government's commitment in full and to resolve the complex issue of pensions parity in relation to those deals. The announcement went on to say that the policy in relation to any future restructuring deals would be determined in the light of the final report of the Commission on Public Service Pensions. I would point out that parity has continued to be applied in relation to subsequent pay increases. I have no plans to change the policy.
The Government welcomed the interim report of the commission which was published in November 1997 and looks forward to receiving its final report in the coming months.
