Current Public Service Pension Summary

Public Service Pension Reduction (PSPR)

This reduction which applies to certain public service pensions was introduced under the Financial Emergency Measures in the public interest Act 2010 (FEMPI).

 

The Public Service Pension Reduction (PSPR) is applied to a pensioner’s gross annual rate of pension using a set of rates and income bands. Public Service pensioners are divided into two groups:

  • Group 1: Pensions awarded in respect of retirement pre- March 2012.
  • Group 2: Pensions awarded in respect of retirement post-February 2012. Members who retired after February 28th 2012 have a pension based on the reduced January 2010 salary which generates a significantly reduced pension compared with their pre-March 2012 colleagues.

The current update on pension restoration is given below:

Pre March 1st  2012 Retirees

Jan 1 2018 Jan 1 2019 Jan 1 2020
Up to €30, 000 Exempt Up to €39,000 Exempt Up to €54,000 Exempt
€30,000 –€60,000 12% €39,000 – €60,000 12% €54,000 to €60,000 12%

 

Post February 28th 2012 Retirees

Jan 1 2018 Jan 1 2019 Jan 1 2020
Up to €60, 000 Exempt Up to €60,000 Exempt Up to €60,000 Exempt
€60,000-€100,000 5% €60,000-€100,000 3% €60,000-€100,000 1%

 

It is important to note that the link between pay and pension is only guaranteed for the lifetime of the current pay agreement, i.e. end of 2020. It means, in general, that the basic pay increases over the 2018–2020 period:

  • will be passed on to the pensions of pre-March 2012 retirees only where the pay level on which their pension is based does not exceed the actual pay level of serving staff in the same grade and on the same pay scale point;
  • will be passed on to the pensions of persons who retired on or after 1 March 2012 in nearly all cases.

For complete details members should look up - Circular 02/2018: Pension increase policy in the public service until end-2020

 

Pay Increases under PSSA (Public Service Stability Agreement)

Increases to basic pay (excluding allowances) under current Public Service Pay agreement:

  • 2018
  • 1 Jan increase of 1%
  • 1 Oct increase of 1%
  • 2019
  • 1 Jan Salaries up to €30000 increased by 1%
  • 1 Sept increase of 1.75%
  • 2020
  • 1 Jan Salaries up to €32000 increases by 0.5%
  • 1 Oct increase 2%

Please note that the above increases apply to basic pay. Under the PSSA agreement core pay and allowances were split. This has caused delay in paying pension increases to many members who retired post Feb 28th 2012. It especially effects teachers, who retired from the ETB sector, who are now paid by the PSSC (Payroll Shared Services Centre). The 5 % cut to allowances, which was applied in 2009, is due to restored in October 2020. This will have an impact on the pensions of  post February 28th  2012 retirees.

Tim O'Meara, Treasurer