Dáil Éireann Debate, Wednesday - 13 December 2023
75. Deputy Catherine Murphy asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the way in which he intends to proceed in respect of his plans to discontinue the long-standing and well-established pay-pension parity link which retired gardaí share with serving officers in An Garda Síochána. [55538/23]
View answerAs Minister for Public Expenditure, NDP Delivery and Reform, I have overarching responsibility for public service pension policy, including in relation to pension increases in the public service.
As the Deputy may be aware, the current method of post-retirement pension adjustment for retirees of pre-existing (pre-2013) public service pension schemes is known as ‘pay parity’.
This method of pension adjustment was agreed by Government in 2017 the context of the Public Service Stability Agreement (PSSA) 2018-2020, and was extended under the successor pay agreement, Building Momentum 2021-2023, which is due to expire at the end of this year.
Under the current policy, pay increases granted under those agreements fall to be passed on to pensions awarded under pre-existing public service schemes where the salary on which the pension is based is lower than or equal to the salary of serving staff with the same grade and scale point, after the pay increase has been applied. If it qualifies, the pension is eligible for an increase to the extent that this will ensure alignment with the pay of serving staff. This means that, in general, a salary increase awarded to serving public servants will be passed through to the pensions of those persons who have retired on an equivalent grade and pay scale point.
While I have overall responsibility for pension increase policy, responsibility for implementing pension increases, where they fall due, rests with individual public service bodies and their associated pension administrator.
Pensions in payment under the Single Public Service Pension Scheme are adjusted in line with increases in the Consumer Price Index (CPI), as provided for under section 40 of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012.
As the Deputy may be aware, confidential negotiations are currently ongoing in relation to the successor to the Building Momentum agreement. These public service pay talks are attended by Trade Unions and Staff Representative Associations, who represent current public service employees.
