This Bill’s stated purpose is to put in place a new single pension scheme for all new entrants to the public service. Among its proposals is the use of career average earnings, as opposed to final salary, to calculate pension entitlements. The Bill also contains provisions that will impact directly on existing public service pensioners. ARCOIreland is deeply concerned at these developments and held an emergency National Executive meeting on 6 January 2012 to discuss the implications of this legislation for its members and the strategy it would adopt to oppose it.
Among the areas of concern for our members are the abatement of the military pensions of those who take up certain public sector employment and the linking of future pension increases to the Consumer Price (All Items) Index. This would also give the Minister complete discretion over when to pay any increases and it would give legislative force to the breaking of the linkage between pensions and service pay.
ARCOIreland has written to Mr. Brendan Howlin TD, Minister for Public Expenditure and Reform, expressing its concern at the current draft provisions of the Bill and pointing to the detrimental effect these would have on the pension entitlements of our members.
ARCOIreland will consult with other interested parties and will seek to protect the pension entitlements of its members by engaging at the Committee Stage of the Bill.
Members of ARCOIreland are invited to make submissions on this matter to the executive.
