Public Service Pension Reduction (PSPR)
Public service pensions were reduced under emergency legislation in January 2011. A phased reversal of these reductions commenced in Jan 2016 and was followed by phase 2 in Jan 2017.
The 3rd phase of reversing the cuts is effective from 1 January 2018. However the change was not reflected in the first payroll of 2018 i.e. 11 Jan last.
The reduction in PSPR is included in the pension payment of 25 Jan 2018 retrospective to 1 Jan 2018.
The mechanism for reducing the pension cut is achieved by increasing the threshold at which PSPR applies. Different exemption thresholds apply depending on when a person retired (before/after 1 March 2012) and on the amount of gross annual pension.
Details of the changes to the PSPR rates are carried on page 5 of the last Comhnasc and can be accessed under the pensions>pensions restoration tab on this website.
A very comprehensive information note is available on the DES website.
1% Parity increase to post 1 March 2012 retirees
The recent public service pay agreement [PSSA] provides that increase to serving teachers will apply to retired teachers whose pensions are based on that scale. In practise this means that increases will apply in the first instance to teachers who retired on reduced salaries i.e. those who retired since 1 March 2012.
The first increase that serving teachers got in many years was a flat €1,000 increase in salary scheduled for 1 September 2017 but brought forward to 1 April 2017.
This increase will apply pro-rata to those teachers who retired since 1 March 2012 and 1 April 2017. [Teachers who retired from 1 April onwards will all ready have this increase factored into pension.]
This parity increase is included in the pension payment of 25 January 2018 together with arrears to 1 September 2017.
Please note that this increase does not apply to teachers who retired prior to 1 March 2012. An explanation as to why the pensions of those who retired since 1 March 2012 will attract increases in the first instance is carried on page 5 of the recent Comhnasc.
A comprehensive information note is also available on the DES website.
The PSSA also provides for a 1% pay increase from 1 January 2018. We are awaiting confirmation from the DES as to when this increase will be reflected in pension payments.