As the Deputy will be aware, I have primary responsibility for the civil service pension schemes, while I hold an overall policy role in relation to public service pension schemes.
No civil or public service occupational pension schemes will have a double pension payment, as they have separate terms to the State Pension (Contributory).
In respect of the civil service pre-existing (pre-2013) pension schemes for which I have responsibility, the requirement for civil and public servants to pay Class A PRSI was introduced from 6 April 1995 (“pre-95”).
An entitlement to the State Pension is generally not held by “pre-95” civil servants, as they pay a modified PRSI rate. This cadre of civil servants do not hold an entitlement to the State Pension. However their occupational pension benefits are higher than their “post-95” counterparts, because their occupational pension is not ‘integrated’ with the State Pension.
Civil servants appointed “post-95” who pay Class A PRSI have an entitlement to the State Pension, and their occupational pension benefits are ‘integrated’ with it. This means that their occupational pension benefits are lower than “pre-95” civil servants, to take account of benefits due under the State Pension.
While civil service pensioners who are in receipt of the State Pension will receive a double payment as advised by the Minister for Social Protection, this is based on an entitlement they built throughout their working life through payment of ‘full’ PRSI contributions.
However, pension increases are also due to all civil service occupational pensions this year. Under the Building Momentum Agreement 2021-2022 and the recently agreed extension to that agreement, eligible civil service pensioners will benefit from the pass-through of pay increases applied to their serving counterparts in their occupational civil service pensions.
The relevant pension increase rates are as follows:
- From the 2nd of February 2022, a 3% increase in annualised basic salaries (as per the recent extension).
- From the 1st of October 2022, a 1% increase or €500, whichever is greater as applied to the pay scale.
The application of the above increases will also result in the payment of a lump sum of pension arrears where appropriate.
Although not entitled to a double payment under the State Pension, a “pre-95” pensioner will receive a higher monetary increase in their civil service occupational pension this year than a “post-95” pensioner who retired on a similar final pensionable remuneration, as their occupational pension is not integrated with the State Pension.
