Dáil Éireann Debate, Tuesday - 2 May 2017
671. Deputy Ruth Coppinger asked the Minister for Public Expenditure and Reform if he will restore public sector pay to eliminate inferior pay scales and pension schemes for newer workers; and if he will make a statement on the matter. [20054/17]
Amharc ar fhreagraThe 10% reductions in starting pay for certain new entrants were introduced in January 2011 as part of the National Recovery Plan in order to reduce the Public Service Pay Bill by the then Government.
The issue of addressing the difference in incremental salary scales between those public servants, who entered public service employment since 2011 and those who entered before that date was addressed with the relevant union interests under the provisions of the Haddington Road Agreement (HRA). From 1 November 2013 pre and post-2011 pay scales were merged into a single consolidated scale applicable to each grade. Generally, the third point of 1 November 2013 pay scale is equivalent to the first point of the pre 2011 scale. Guidelines in relation to the merging of the scales are available on my Departments website http://www.per.gov.ie/en/haddington-road-agreement/
Any further remuneration adjustment, for any group of public servants including new entrants, can be examined under the framework of the Lansdowne Road Agreement but must also be considered in the context of the total cost of the agreement (€844 million) and the total cost of the outstanding FEMPI restoration post Lansdowne Road (€1.4 billion).
Acting within these constraints, the Agreement has provided the flexibility to address particular sectoral issues such as the restoration of supervision and substitution payments and new entrant payments in the Education Sector and the restoration of rent allowances to new entrant firefighters and members of An Garda Síochána.
The Public Service Pensions (Single Scheme and Other Provisions) Act 2012 introduced a new Single Pension Scheme for new entrants to the public service from 1 January 2013. Being a career-average Pension Scheme in which retirement benefits are based on a member's earnings throughout their entire public service career, the Single Scheme represents a significant departure from the nature of earlier Public Service Schemes operating in Ireland that have been based on members' final salary. This scheme has a minimum pension age which is linked to future increases in the age for the Contributory State Pension, and pension benefits are linked to rising inflation rather than pay. This major reform aims for very substantial long-run savings of about one third of pension pay-out costs, while still delivering fair and reasonable pensions to members and ensuring the continued fiscal sustainability of public service pension costs into the future.
