Most retired public service staff are to receive about €1,680 more in their pensions over the next three years as part of a pension restoration initiative approved by the Government.
The Minister for Public Expenditure and Reform Brendan Howlin said that by 2018, a total 65,000 lower-paid pensioners would be removed from the scope of the pension reduction scheme.
The new pension measures are estimated to cost €30million per year or cumulatively €90 million over three years to the end of 2018.
Many retired public service staff experienced two reductions in their pensions since 2011.
However, talks on ameliorating the pension situation for retired public service personnel took place in parallel with the recent negotations on public service pay restoration.
The restoration of pension income is to phased in over three years under an initiative approved by theCabinet. The largest pension income boost of €1,680 over three years will be received by those with a gross pension of about €35,000 or more.
Mr Howlin said that from January 2016 most pensioners who were affected by the public service pension reduction measures would receive a boost of €400.
There will be a further boost to pension income of €500 for most retired public servants from January 2017.
The Minister said in January 1st, 2018 there wouldbe a further return of €780 to most pensioners who had been affected by the pension reductions.
Mr Howlin said “the proposals in respect of public service pensioners are prudent in the context of the fiscal space available to the Government and will not compromise the ongoing recovery in the Government finances”.
The public service pension reduction, which came into effect in January 2011, imposed reductions on annual public service pensions in payment in excess of €12,000, using a progressively tiered set of bands and rates with a top rate of 12 per cent on any public service pension amount over €60,000.
The legislation was amended from January 1st, 2012 to increase the top rate of PSPR from 12 per cent to 20 per cent on the portion of any public service pension amount in excess of €100,000.
The Financial Emergency Measures in the Public Interest Act 2013 also provided for additional public service pension reduction rates ranging from 2 per cent to 8 per cent to be applied to all annual public service pensions in payment in excess of €32,500 from July 1st, 2013.
The Department of Public Expenditure and Reform said these pension measures in total generated full-year savings of more than €125 million.
It said the cost of the new pension amelioration initiative was estimated at some €30million per annum or a cumulative cost of €90million over the three years to the end of 2018.
The number of pensioners affected by public service pension reduction is 90,000.
