Dáil Éireann Debate, Wednesday - 7 February 2024
130. Deputy Noel Grealish asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he will retain the current link between pensions of retired members of An Garda Síochána with pay for serving members, which was previously agreed with all staff associations and was scheduled to change at the end of January 2024 to a link between pensions and the consumer price index; and if he will make a statement on the matter. [5482/24]
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, a frequently used method of post-retirement pension adjustment for public service pension schemes is known as ‘pay parity’. This method of pension adjustment was agreed by Government in 2017 to be used in relation to pre-existing (pre-2013) public service pension schemes. This was in the context of the Public Service Stability Agreement (PSSA) 2018-2020, and was extended under the successor pay agreement, Building Momentum 2021-2023, which expired at the end of 2023.
Under the policy of pay parity, general round pay increases are passed on to pensions awarded under pre-existing public service schemes (pre-2013 pension schemes). Where applicable, salary increases 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.
Pensions in payment under the Single Public Service Pension Scheme do not use this method, and are adjusted in line with increases in the Consumer Price Index (CPI), as provided for under Article 40 of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012. This has been the case since the introduction of the scheme.
There is further provision in Article 47 of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012 allowing for the terms of Article 40 to be extended to other public service pension schemes. This approach would remove the link between pensions in payment and salary scales. A move to using this method has not been scheduled.
Negotiations are now concluded in relation to the proposed successor to the Building Momentum agreement, Public Service Agreement 2024-2026. It has been agreed that pay parity will apply in respect of this agreement, assuming that it is ratified by the relevant unions.
