Dáil Éireann Debate, Tuesday - 29 January 2019
192. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the benefits to existing public service pensioners under the Public Service Stability Agreement 2018-2020; and if he will make a statement on the matter. [4306/19]
View answerThe Government has approved public service pension increases under the pension increase policy adopted for the period to end-2020 as part of the Public Service Stability Agreement 2018-2020, PSSA. The principle of pay parity underlies this pension increase policy. This means that the pay increases agreed as part of the PSSA, and legislated for in the Public Service Pay and Pensions Act 2017, are passed on to pension recipients to bring the salary on which their pension is based up to the current salary rate of those still serving, after the pay increases have been applied to serving staff. Pension recipients qualify to receive an increase if the salary on which their pension is based is lower than the current salary rate of those still serving in the same grade and on the same scale point.
Because current salary rates for serving staff are being progressively restored to the pre-FEMPI cut levels, it means that for increasing numbers of pension recipients, the salary on which their pension is based will be overtaken by the current salary rates for serving staff, with the result that these pension recipients will qualify for pension increases.
In addition to the grant of pension increases as I have described, pension recipients will also benefit from the reduction/elimination of the Public Service Pension Reduction, PSPR, in accordance with the FEMPI Act 2015 and the Public Service Pay and Pensions Act 2017. The changes with regards to PSPR do not form part of the PSSA, but will take place during the time period covered by the Agreement.
