Pension implementation changes dropped

The Government has dropped the implementation of proposals to change pension arrangements for public servants in a bid to win…

The Government has dropped the implementation of proposals to change pension arrangements for public servants in a bid to win support for the Croke Park deal on pay and reform.

A new document clarifying elements of the deal issued this afternoon by senior officials of the Labour Relations Commission, says the Government will not proceed with proposals to change the arrangements for awarding increases in public service pensions over the lifetime of the Croke Park agreement – which runs to 2014.

Minister for Finance Brian Lenihan announced in the Budget last December that current arrangements whereby pension increases for retired public servants are based on rises awarded to staff in the grades they previously held would be reviewed.

He said the Government would instead consider linking public service pensions to increases in the cost of living.

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The new clarifications state: “In the prevailing circumstances the Government has clarified that no change in the current arrangements for the indexation of pensions for current public service pensioners and serving public servants will be implemented during the period of the agreement”.

The clarification document also says the Government acknowledges that trade unions will not be committed to any of the issues in relation to pensions as a result of signing up to the Croke Park agreement.

“The Government also accept that the dispute resolution provisions set out in the Draft Agreement do not apply to the engagement on pensions in spring 2011”.

The clarifications state that while, under the Croke Park deal, priority would be given to those earning less than €35,000 in the review of pay to be conducted in spring of next year, “this does not prevent staff with salaries in excess of that amount from benefitting from this initial or subsequent yearly reviews”.

The new document also says the Government intends to operate provisions for redeploying staff “in a reasonable manner and with due regard to the personal circumstances of public servants”.

“There will not be serial or multiple redeployments and the work location from which the first location is proposed/home address of staff will be used to determine the radius for any redeployment,” the document states.