In line with the provisions of Dublin Port Superannuation Scheme 1996, any increase in pensions requires Ministerial consent.
Further to my reply to the Deputy on the 28 June 2022, I wish to clarify that Dublin Port Company wrote to the Department on 3rd June 2021 seeking Ministerial consent to a 2.5% increase in pensions in payment and deferred pensions.
The request for consent was reviewed within my Department in conjunction with the Department of Public Expenditure and Reform, with the assistance of NewERA.
An inflation linked policy for increases was adopted in respect of the Scheme in 2017. This policy links increases to CPI inflation at 31 March in any year and with any subsequent increases payable from 1 July of that year. As CPI inflation was 0% up to March 2021, the adopted policy governing the Scheme’s rules and regarding pension increases does not support an increase in 2021.
I therefore decided not to consent to the proposed 2.5% increase in benefits as the relevant CPI inflation calculation for the period in question - the year ending March 2021 - was actually 0% and the pension scheme’s policy is only for inflation linked increases. A letter issued to the Company advising them of this decision on 13 June 2022.
I wish to further clarify, that in seeking consent, the port company linked the request to a reversal of the impacts of the pension levy. However, it is considered that any reversal of the implementation of the pension levy is a separate issue and the method employed are matters for the trustees of the pension scheme to resolve. This was also communicated to Dublin Port Company.
More broadly, as I acknowledged in Parliamentary Question Number 201 of 28 June 2022, there are increasing inflationary pressures generally as reflected in the Consumer Price Index over the last year and any future requests for consent will be considered as appropriate in light of these developments.
