Vol. 547 No. 2
89 Mr. Perry asked the Minister for Finance if his attention has been drawn to the fact that public sector pensions will in future rise in accordance with an index of public sector pay as a whole including the pay of non-permanent public servants instead of pensions rising at the same rate as the pay of a serving equivalent; and if he will make a statement on the matter. [2967/02]
The issue raised by the Deputy relates directly to the final report of the Commission on Public Service Pensions which was published in January 2001. In September 2001, the Government decided to accept the thrust of the package of reforms recommended by the commission, and the working group to advise on implementation provided for in the programme for prosperity and fairness has been established. The operational details of the implementation of the commission recommendations will be agreed by the Government following receipt of a report from the implementation working group, which is to be made within six months of the Government decision.
The commission recommends, inter alia, continuation of pension increases in line with public service earnings and also that serving public servants make an additional explicit contribution towards the cost involved. In a change from the existing form of pay parity, the commission proposes that a single index of public service earnings be used in the future, with pension increases based on changes in the index to be paid automatically on a twice-yearly basis.
Public service pensioners clearly have a very significant interest in these recommendations. For this reason, the Government has decided to facilitate pensioner group representation in the working group process in relation to the commission's recommendations on pensions increase policy. As a first step, a number of pensioner groups attended a preliminary meeting with officials of my Department on 11 December 2001. This will be followed by a number of information seminars and a process of consultation in relation to the pensions increase index recommended by the commission. In this way pensioners and their representatives groups will have an opportunity in the months ahead to have the commission recommendations explained and examined in more detail and to participate in the consultation process which I have initiated in relation to future pensions increase policy.
