Vol. 553 No. 6
88 Ms Enright asked the Minister for Education and Science the way in which he proposes to deal with the issue of pensions for retired teachers following the benchmarking body's report; and if he will make a statement on the matter. [14775/02]
I presume the Deputy is asking whether increases which might be recommended by the benchmarking body in the pay of serving teachers will be passed on to retired teachers. In accordance with long established policy on public service pensions, an increase in the pay of a serving teacher which involves a restructuring of duties or a restructuring of the basis for determining salary or allowances will not be passed on to a teacher who retired before the date from which the restructuring increase became effective in pay. With this exception, increases in the pay of serving teachers are reflected in the pensions of retired teachers.
The question of pension increase policy generally has been considered by the Commission on Public Service Pensions. The commission has recommended in its final report that pensions of public servants should continue to be increased in line with public service earnings. It has also recommended that serving public servants make an 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. It also proposes that pension increases based on changes in the index be paid automatically on a twice yearly basis. The operation of the index will mean that pensions will be increased by reference to the average of pay increases across the public service rather than by reference to increases in the pay of the specific grade from which the pensioner has retired. The operation of the index will also mean that the present distinction between restructuring increases and other pay increases will no longer be relevant.
