Dáil Éireann Debate, Tuesday - 11 July 2017
181. Deputy Jack Chambers asked the Minister for Public Expenditure and Reform if he will provide an annual timeframe on the way in which pay restoration for the pubic sector will apply; and if he will make a statement on the matter. [32270/17]
Amharc ar fhreagra182. Deputy Jack Chambers asked the Minister for Public Expenditure and Reform if there will be full restoration of public pay and pensions for public sector workers by 2021; and if he will make a statement on the matter. [32271/17]
Amharc ar fhreagraI propose to take Questions Nos. 181 and 182 together.
The Public Service Stability Agreement 2018-2020 contains the following pay adjustments:
2018
- 1 January 2018 annualised salaries to increase by 1%;
- 1 October 2018 annualised salaries to increase by 1%.
2019
- 1 January 2019 annualised salaries up to €30,000 to increase by 1%;
- 1 September annualised salaries to increase by 1.75%.
2020
- 1 January 2020 annualised salaries up to €32,000 to increase by 0.5%;
- 1 October 2020 annualised salaries to increase by 2%.
A copy of the proposed Agreement can be found on the Department's website: http://www.per.gov.ie/wp-content/uploads/LRA-extension.pdf
The proposed Agreement, which is subject to ratification by Unions and Representative Associations for public servants, provides a series of affordable pay increases which will unwind FEMPI pay reductions for all those earning up to €70,000, which is equal to almost 90% of public servants over the period to 2020. The Agreement runs from 2018- 2020 and has a cost over that period of €887 million. As such, this provides a clear and realistic route out of FEMPI.
In total the benefits under the Agreement range from 6.2% to 7.4% and again we have weighted these benefits towards those on lower pay. As well as being fair to public servants it is also fair to those who rely on public services and to the exchequer. Under the proposed terms of the Agreement, public servants will make an additional contribution to their pensions, which is reasonable and reflects the higher value of these pension terms compared to the private sector. Crucially, this will place public service pensions on a more sustainable long-term footing.
This additional superannuation contribution will be applied as below:
Additional Superannuation Contribution
Public Servants who are Members of pre-2013 Pension Schemes with Standard Accrual Terms
1 January 2019
|
Band |
Rate |
|
Up to €32,000 |
Exempt |
|
€32,000 to €60,000 |
10% |
|
€60,000 plus |
10.5% |
1 January 2020
|
Band |
Rate |
|
Up to €34,500 |
Exempt |
|
€34,500 to €60,000 |
10% |
|
€60,000 plus |
10.5% |
Public Servants who are Members of the Single Public Service Pension Scheme
1 January 2019
|
Band |
Rate |
|
Up to €32,000 |
Exempt |
|
€32,000 to €60,000 |
6.66% |
|
€60,000 plus |
7% |
1 January 2020
|
Band |
Rate |
|
Up to €34,500 |
Exempt |
|
€34,500 to €60,000 |
3.33% |
|
€60,000 plus |
3.5% |
Public Servants who are Members of pre-2013 Pension Schemes with Fast Accrual Terms
(Unchanged)
|
Band |
Rate |
|
Up to €28,750 |
Exempt |
|
€28,750 to €60,000 |
10% |
|
€60,000 plus |
10.5% |
