Dáil Éireann Debate, Tuesday - 17 November 2020
299. Deputy Richard Bruton asked the Minister for Public Expenditure and Reform if recent increases have been made to the pensions of those who retired at the top of the assistant principal scale; if the FEMPI cuts have been fully restored; and if increases are due in respect of more recent pay agreements. [36452/20]
Amharc ar fhreagraAs the Deputy may be aware, the previous Government approved the current pension increase policy for the pre-existing public service pension schemes (i.e. all pension schemes apart from the Single Public Service Pension Scheme) as part of its commitments under the Public Service Stability Agreement 2018-2020 (PSSA).
Under this policy, which applies for the duration of the PSSA, pay increases granted to serving staff over the course of the PSSA are passed on to those pensions awarded under the pre-existing public service schemes where the salary on which the pension is based does not exceed 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.
The Deputy has asked about civil servants who retired at the maximum of the Assistant Principal (AP) grade. In the response, it is necessary to distinguish between those who retired before 1 March 2012 and those who retired after that date.
Generally, individuals who retired pre-March 2012 will have retired either before imposition of the first FEMPI pay reduction in 2010 or were protected by the first 'grace period' so their pension does not reflect this reduction. APs in this cohort who retired on the maximum point of the scale are not eligible for pension increases arising from PSSA increases to serving staff as the salary on which their pension is based is still higher than the salary of serving staff on the same grade/scale point.
Individuals who retired from 1 March 2012 onwards retired either before the second round of FEMPI reductions were imposed in July 2013, were not affected by this second round of reductions as it only applied to salaries above €65,000, or the salary on which their pension is based does not reflect these reductions as a result of the second 'grace period'. However, given that the salary on which their pension is based encompasses the first FEMPI reduction in 2010, this cohort of retirees are generally eligible for pension increases arising from PSSA pay increases as their pensionable salary will be lower than the salary of serving staff, following each of those pay increases.
The National Shared Services Offices, which administers the civil service pension schemes, has confirmed that the majority of individuals who retired at AP grade from the civil service, and who were eligible for a pension increase on 1 October 2020 have had this increase passed on to them, with a very small number of more complex outstanding cases currently being reviewed.
