Dáil Éireann Debate, Tuesday - 13 December 2016
370. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform further to Parliamentary Question No. 397 of 29 November 2016, if a public servant due to retire in May 2017 will have their pension based on their salary level pre the FEMPI cuts; if not, if the pension will be based on the salary inclusive of the restoration of salary due in September 2017; and if he will make a statement on the matter. [39432/16]
View answerPublic servants who retire in May 2017, in line with normal pension award arrangements, will have their pensions awarded on the basis of the salary they are paid at retirement time.
However for persons retiring then whose pay was affected by the FEMPI 2013 cuts, this pension award will reflect a higher salary, being that which would apply had those cuts not occurred. This discounting of the FEMPI 2013 pay cuts, which affected persons with annualised salaries over €65,000, reflects the operation of a "grace period", instituted under section 9 of FEMPI 2013 and extended to 1 April 2019 under the terms of the Public Service Pension Rights (No. 2) Order 2015 (S.I. No. 547 of 2015).
The €1,000 salary increase due on 1 September 2017 will apply to public servants on annualised salaries up to €65,000. For retirements from then on, this salary increase will be reflected in the rates of pension awarded.
Reductions to public service pensions under the financial emergency legislation are being significantly reversed in three stages under FEMPI 2015, with Public Service Pension Reduction (PSPR)-affected pensioners getting pension increases via substantial restoration of the PSPR reductions on 1 January 2016, 1 January 2017 and 1 January 2018. As I have previously indicated, it will be for Government in due course to consider the issue of how to adjust the post-award value of public service pensions through appropriate pay or other linkages, as we move beyond FEMPI and PSPR restoration towards more normal pay and pension setting conditions in the public service.
