Deep divisions as Government looks to save €550m in pensions

The Government is understood to be seeking to generate about €550 million a year from increased contributions by public service staff towards their pensions.

Crunch talks which will determine whether a new public service accord will be agreed between Government and representatives of its 300,000 employees have continued in Dublin on Tuesday as deep divisions remain between the parties.

Sources said Government officials did not specify at talks on Tuesday morning how much more individuals would have to contribute under the new proposals.

It is expected that further details of the Government’s proposals will be given to trade unions and staff representatives on Tuesday afternoon.

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The proposed new higher pension contribution would, in effect, replace the existing public service pension levy which was introduced as an emergency measure in 2009.

The pension levy currently generates about €700million in revenue for the exchequer annually.

Nurses on Tuesday argued that the Government would have to move beyond the level of funding it said it had available next year.

Mid-ranking gardaí said they would “absolutely resist” any move make them pay more for their faster accruing pensions.

Antoinette Cunningham of the Association of Garda Sergeants and Inspectors said such a move would not be fair.

She said it was Government policy that gardaí had to retire and received their pensions earlier than other groups.

The general secretary of the Irish Nurses and Midwives Organisation Liam Doran said "additional monies will have to be found to address the issue that is hampering the growth of our public health service, the issue of pay restoration for all public servants"

“The Government is going to have to use a wider lens and more imagination.”

Asked about the likelihood of a deal being reached in the next 48-hours, Bernard Harbor of the Impact trade union said:

“We really need to see what money is available for any deal before I can really answer that question. That’s what we need to get down to if not today, then certainly tomorrow. Impact has said throughout this process that we think an agreement can be reached.”

“But it’s dependent now on whether there is enough substance in what the Government is talking about to put this to ballot. We need to see some figures. I understand that’s not an easy process but it’s going to have to happen. It needs to happen tomorrow if we’re going to do a deal.”