Dáil Éireann Debate, Wednesday - 27 May 2026
62. Deputy Albert Dolan asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation the Government's position regarding the maintenance of pension parity between retired teachers and serving teachers in the context of future public sector pay agreements; and if he will make a statement on the matter. [40401/26]
Amharc ar fhreagraAs the Deputy may be aware, I have overarching responsibility for pension increase policy in the public service and I address the portion of your query relating to that below.
The Pension (Increase) Policy Act 1964 provided for ministerial discretion on the application of pension increase policy, without a prescribed methodology for how these increases would apply. The Single Public Service Pension Scheme does not apply this method, but applies pension increases in line with increases in the Consumer Price Index as provided for by the scheme rules.
The principle of “pay parity” emerged as the preferred method of public service pension increase over time; and involves adjusting the occupational pensions of public service pensioners in line with increases applied to the wages or salary of the pensioner's grade at retirement.
The current version of the pay parity policy was used to apply public service pension increases from 1986 to 2010. It was then used in recent years in conjunction with rules regarding "FEMPI" restoration, and to apply pension increases directly after restoration was achieved.
Notwithstanding that pay parity has been the method used for increasing pensions in payment over a substantial period of time, the ministerial discretion under the Act allows for the Minister of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation to introduce an alternative method.
I have signed off on pension increases based on the principle of pay parity to the end of the Public Service Agreement 2024-2026 which runs until 30 June 2026 and covers the public service. It is expected that my officials and Trade Unions and Staff Representative Associations, who represent current public service employees, will engage in negotiations in relation to successor agreement in the period ahead. It would not be appropriate to comment on matters that may form part of that process.
