Seán Haughey
Ceist:80. Deputy Seán Haughey asked the Minister for Public Expenditure and Reform if he has considered cutting contributory public service pensions; and if he will make a statement on the matter. [21298/22]
Amharc ar fhreagraWednesday, 27 April 2022
Ceisteanna (80)
Freagraí scríofa
As the Deputy may be aware, there are two separate pension increase arrangements applying to public service pensions depending when individuals joined their relevant pension scheme. These are as follows:
1. Single Scheme:
This the mandatory pension Scheme for all new-joiner pensionable public servants since 2013. The Scheme's rules are set out in legislation and are outlined in the Public Service Pensions (Single Scheme and Other Provisions) Act 2012. Section 40 of that Act specifically provides for pension increases to be applied to pensions in payment in line with increases in the Consumer Price Index (CPI).
2. Pre-Existing Schemes
There is a separate policy applying to those public service pension schemes which predate the Single Scheme. It is important to note that the grant of increases for members of these schemes is a discretionary power of the Minister for Public Expenditure and Reform under section 29(2) of the Pension Increase Act 1964.
Under the current pension increase policy for pre-existing public service pension schemes, an individual's pension is eligible for an increase to the extent that this will ensure alignment with the pay of serving staff. This means that the majority of retired members generally receive pension increases in line with the pay increases due to their peers in employment.
The current policy has been in place since 2017 and was introduced as an equitable approach to deal with the differences between cohorts of pensioners depending on when they retired (i.e. those who retired post February 2012 did so on reduced pensions). These complexities were caused by the introduction of FEMPI arrangements and their subsequent unwinding.
The policy is outlined in detail in my Department’s Circular 10/2021, which is available here: www.gov.ie/en/circular/e3bc7-instruction-on-the-pension-increase-policy-in-the-public-service-until-end-2022/
In summary, the pension increase policy for all new members of the public service since 2013 is linked to inflation consistent with the relevant legislation and is the default arrangement for all new members of the public service. The existing pension increase policy for the members of pre-existing schemes remains in place for the period up until the end of 2022, in advance of which I will give due consideration to the policy approach going forward.