Latest Pay Agreement and Increases to Pensions

The Minister for Public Expenditure and Reform, Michael McGrath TD, has secured government approval for proposals to extend the current public service pay agreement, Building Momentum, to the end of 2023. Subject to ratification, the proposals will see a 3% increase in pay for public sector workers, backdated to 2 February 2022, a 2% increase from 1 March 2023 and a further 1.5% (or €750 whichever is greater) from 1 October 2023. This is in addition to 1% (or €500 whichever is greater) due on 1 October 2022 agreed under the original Building Momentum agreement.

The Chairperson of the ICTU Public Services Committee, Kevin Callinan, wrote to Minister McGrath on 31 August asking for his confirmation that in the event of the pay proposals being accepted, pensions will be increased in the normal way. In his letter (downloadable HERE) Kevin Callinan stated the ICTU works closely with the Alliance of Retired Public Servants.

Minister McGrath, in his reply dated 9 September (downloadable HERE), has agreed that the current pensions increase policy, of maintaining parity between the pay of serving staff and pensions, will be extended for the duration of the pay agreement.

ARCO members will be pleased that Parity, which is a key component of ARCO’s Pension Strategy, will be retained to at least the end of 2023 under this extension to Building Momentum.

Beyond the reassurance on Parity for the foreseeable future, the correspondence between the ICTU Public Services Committee and the Minister, and the references contained in both to the Alliance of Retired Public Servants (of which ARCO is a founding member), demonstrates the evolving status of those in receipt of public service pensions within the industrial relations machinery of the State.

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