August Pension Increase
ARCO has been informed by Pensions Section that it hopes and intends to include the benefit of the 1st of August 2025 increase in pensions, under the Public Service Agreement 2024 to 2026, in the August payroll. This is a general round increase in annualised basic salary for all public servants of 1%.
Due to the now complex structure of Defence Forces’ pension schemes and payrolls, the implementation of pension increases is challenging for Pensions Section.
Full information on the Public Service Agreement 2024 to 2026 is available in our Posting of 5th February 2024.
The pensions of those in the Post 2013 Single Pension Scheme were increased with effect from 1st January 2025 based on the CPI increase of 1.4% for the previous year.
Local Bargaining Pay Increase
Members will be aware that the Public Service Agreement 2024 – 2026 also includes a provision for a Local Bargaining process, to a maximum value equivalent to 3% of basic pay. When negotiations have been completed, the first instalment of this, equivalent to 1% of the basic pay cost, will be implemented on the 1st of September 2025 and the balance will fall to be addressed in any successor pay agreement. No agreement has been reached as yet in relation to the Local Bargaining element.
Pensions Section has 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. Any increases due will be implemented, as appropriate, in accordance with Government policy and established methodology, as soon as is practical.
We will keep members informed of developments.
