June Pension Increase
Pensions Section intends to include the benefit of the 1st of June 2026 increase in pensions, under the Public Service Agreement 2024 to 2026, for the vast majority of military pensioners in the June payroll. This is a general round increase in annualised basic salary for all public servants of 1% and is the final increase under this Agreement.
Full information on the Public Service Agreement 2024 to 2026 is available in our Posting of 5th February 2024.
Update – Local Bargaining Pay Increase
The Public Service Agreement 2024 – 2026 includes a provision for a Local Bargaining process, to a maximum value equivalent to 3% of basic pay. The first instalment of this, equivalent to 1% of the basic pay cost, was due to be paid from the 1st of September 2025. According to the Agreement, the balance will be addressed in any successor pay agreement.
However, ARCO understands that approval has yet to be given by DPER for the first instalment cases submitted by RACO for special increases.
Pensions Section has previously stated that under Government policy on pension increases, the benefit of ‘special’ increases such as Local Bargaining pay increases, may be applicable to pensions, subject to compliance with certain criteria. Once agreement is reached under the Local Bargaining clause, Pensions Section will examine the details of the relevant arrangements agreed to see what, if any, increases are applicable and due to pensioners.
We will advise members of any information that comes to hand in relation to this drawn-out issue.
The Future
According to government statements, negotiations in relation to a new public service pay agreement are expected to take place later in the year, with any subsequent agreement likely to take effect from 2027 onward.
