It is certain that public sector unions will want the issue of pensions to be on the agenda for any future talks, writes MARTIN WALLIndustry Correspondent
THE GOVERNMENT’S new National Pensions Framework repeats the commitment made in the budget last December that the current system of retired public servants receiving an increase in pension based on rises awarded to serving staff is to be reviewed.
The document says that in relation to existing and future public service pensioners, the Government “will consider using the Consumer Price Index as the basis for post-retirement increases”. No details are set out in the new framework, nor was there in the budget, as to the timeframe the Government has in mind for such possible changes to the pension arrangements for existing staff.
Nor has any public announcement been made about the establishment of any working group or the commissioning of any external consultancy to examine this issue.
The public sector unions do have concerns about the potential erosion of benefits under the Government’s proposals to introduce a new pension scheme for new entrants to come into effect later this year.
However, highly-placed sources said yesterday that the unions were likely to come under more pressure from existing members in relation to any changes to current pension arrangements than in relation to any new schemes.
One senior union figure said last night that the question of pensions can generate as much heat at meetings as pay, particularly for members in the final third of their career.
The public service unions last Friday began an engagement with the Government on the operation of the proposed new public service pension scheme.
However, informed sources said that there was no discussion about changes envisaged for serving staff and the proposals to link future increases in pensions to the cost of living.
This Government proposal for existing staff, which was first floated in December, adds a new dimension to relations between the Government and the public sector unions.
Although there had been suggestions for some time that changes could be made in public pension policy, the issue was not addressed in the lengthy talks between the parties before Christmas. These concentrated largely on pay and public service reform.
Unions such as Impact have been talking publicly about the need for security in terms of pensions for some time now. However, this was in the absence of any concrete announcement by the Government of its intentions.
However, following the statement by the Minister for Finance in the budget that the Government would consider using the Consumer Price Index as the basis for post-retirement increases, it is certain that the unions will seek the issue of pensions be on the agenda for any future talks.
However, at this stage there is no indication as to when any such talks would take place.
In the negotiations last year the centrepiece of a proposed deal was a trade between the unions and the Government on co-operation with reform for guarantees on pay.
Following the introduction of controversial pay cuts in the budget and the announcements of possible changes to pensions, the picture is more complex.
In a letter to members last week, the general secretary of Impact, Peter McLoone, said that the objectives of the unions in the current dispute were to:
Restore public service pay scales
Protect the pensions of public service workers and pensioners
Resist compulsory redundancies
Seek the abolition of the pension levy
Seek an agreed approach to management proposals for outsourcing
Seek the implementation of pay increases agreed under the Towards 2016 transitional agreement.
At a meeting in Galway last week, Sheila Nunan of the teachers’ union the INTO said that public service staff needed certainty not only on pay but also on pensions from the Government.
It remains to be seen what are the Government’s exact proposals for pension reform and whether it is willing to put these in the mix for an overall agreement with the unions.