With unions in the CIÉ transport companies having this week backed long-discussed pension reforms in the group, it is now up to the Government to put in place measures that will allow retired workers to receive their first increase in about 17 years.
Minister for Transport Darragh O’Brien on Monday welcomed the announcement by the CIÉ unions – the NBRU, Siptu, Connect, Unite and the TSSA – that members had backed changes, which had been negotiated with the company in May.
There are two defined benefit schemes in the CIÉ group – the Regular Wages Scheme (RWS) and the 1951 Superannuation scheme.
Members of the RWS backed the reforms by 74 per cent to 26 per cent. The result in the ballot of members of the 1951 scheme was tighter, with the changes being supported by 53 per cent to 47 per cent.
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O’Brien said the decision “prioritises the collective goal of bringing the CIÉ pensions schemes on to a more sustainable footing and provides for overdue increases for CIÉ pensioners”.
However, the reforms will have to be backed by O’Brien as Minister for Transport and by Jack Chambers as Minister for Public Expenditure.
O’Brien had earlier told CIÉ chief executive Lorcan O’Connor in a letter in July that if the deal was agreed then he would “support and actively progress the process for the preparation and consideration of statutory instruments that are required to effect amendments to both schemes”.
Unions are now likely to press ministers to introduce the necessary measures to allow the reforms come into effect within the next few months.
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There are about 6,400 retired CIÉ transport workers and they have been campaigning for years for a pension increase, citing the rising cost of living. However, the schemes’ actuary did not believe that rises were affordable given deficits of about €370 million.
The changes would see the existing two defined-benefit schemes closed to new members, who would be covered by a defined-contribution arrangement.
Under the new proposals former staff who retired on or before December 31st, 2020, would receive a 5 per cent pension increase, with those who retired in 2021 getting 4 per cent, while those who retired in 2022 are in line for a 3 per cent rise.
The deal would also allow staff covered by the 1951 scheme opt to cease paying contributions to the defined-benefit scheme once they reached maximum service and contribute instead to the new defined-contribution scheme.
However, Chambers told Ged Nash of the Labour Party in a parliamentary answer in May that he did not intend to put in place similar arrangements for staff in the public service.
“There is no plan to amend the pre-existing public service pension scheme rules to allow for cessation of scheme membership and/or provision of a defined-contribution scheme for members who have attained 40 years’ reckonable service”, he said.
