Dáil Éireann Debate, Thursday - 2 March 2017
17. Deputy Jackie Cahill asked the Minister for Public Expenditure and Reform if he will ensure that as public sector pay progresses post-FEMPI all public sector pensions will rise pro rata; and if he will make a statement on the matter. [10500/17]
Amharc ar fhreagraIn the past, the ocupational pensions received by public service pensioners were generally adjusted in line with changes in the wages or salary of the pensioner's grade at retirement. Sometimes referred to as "pay parity", this non-statutory linkage lapsed in 2010 when pensions were left unchanged notwithstanding salary cuts at the beginning of that year affecting all public servants.
This pension protection, albeit tempered from 2011 in some cases by the imposition of the Public Service Pension Reduction (PSPR), has worked to the benefit of pensioners, as indeed have the "grace periods" in respect of new-award pensions which accompanied the public service salary cuts in 2010 and 2013.
In addition, the PSPR burden on pensioners is now being significantly alleviated under FEMPI 2015. This substantial part-reversal of the PSPR is proceeding in three stages over the period 2016 to 2018. When complete on 1 January 2018 it will mean that most public service pensioners are not affected by PSPR.
In light of these developments, the issue of how to adjust the post-award value of public service pensions through appropriate pay or other linkages will be considered by Government in due course.
