Dáil Éireann Debate, Tuesday - 26 March 2013
292. Deputy Dominic Hannigan asked the Minister for Public Expenditure and Reform the person that represented public sector pensioners at the recent Croke Park extension negotiations; if the agreement is passed, the effect will this have on public sector pensions; and if he will make a statement on the matter. [14960/13]
View answerThe talks leading up to the recent Labour Relations Commission proposals for a Public Service Agreement 2013 – 2016 took place between Government officials representing the State as employer, and staff representatives, principally the Public Services Committee of the ICTU, representing public servants. The talks and draft Agreement did not encompass public service pensioners and their pension entitlements, and on this basis it is clear that the question of pensioner representation at the negotiations did not arise.
As referred to in the Labour Relations Commission proposals document, separately to the planned pay and productivity measures for existing public servants, the Government has decided to legislate for certain changes in respect of public service pensions. These changes are not part of the draft Public Service Agreement, and were not proposed by the Labour Relations Commission.
The main pension change proposed is that all public service pensions greater than €32,500 will be reduced with effect from 1 July 2013. The Government has decided that this is a suitable means by which public service pensioners will make a fair and proportionate contribution to the ongoing fiscal consolidation. The proposed new reduction in pensions over €32,500 will range from 2% to 5%, with the largest reductions being borne by those on higher pension rates; it will apply to pensions already in payment and to those awarded up to the end of August 2014. The reduction is likely to be implemented by way of increasing and extending the Public Service Pension Reduction (PSPR), which was introduced on 1 January 2011, and which currently applies to all public service pensions over €12,000 awarded at any time before the end of February 2012. Further details, including the actual rates of reduction, will be available on publication of the necessary legislation.
It has also been decided that public servants who retire before the end of August 2014 will have their pension and lump sum awards calculated by reference to current pay rates, that is, the rates applying before the pay cuts above the €65,000 level on 1 July 2013 provided for in the draft Public Service Agreement. This is intended to facilitate public service management in planning for staff departures in an orderly fashion. For clarity, all public servants who retire on pensions greater than €32,500 during this period to end-August 2014 will be subject to the proposed new pension reduction.
