Public sector pension restoration details announced

Public sector pensions were the subject of a separate engagement with the ICTU Public Services Committee and the Alliance of Retired Public Servants during the recent pay talks, as pensions are not directly covered by the agreement.

The parties reached an agreement that pensions would be increased by way of a reduction in the pensions related deduction (Public Service Pension Reduction – PSPR) made from pensions in payment. The agreed measures were subject to a government decision on the matter.

Details were subsequently announced by the Minister for Public Expenditure and Reform, Brendan Howlin TD, on Tuesday (16th June). The changes provide for a restoration of pension income on a phased basis over three years. A total of 80,000 out of 140,000 public service pensioners will be exempted from the PSPR deduction during this agreement.

Pensions below €12,000 were not subject to the deduction, which was originally introduced in 2011.

More detailed information and tables are available on the department’s website.