Minister for Public Expenditure and Reform, Paschal Donohoe TD, has this morning (Thursday) welcomed the proposals issued by the Workplace Relations Commission (WRC).  These proposals would deliver an extension to the Lansdowne Road Agreement.

Minister Donohoe paid tribute to his officials from the Department of Public Expenditure and Reform, union representatives and staff at the WRC, for their extensive work at the Commission.

Minister Donohoe said: ‘These proposals aim to award pay increases for public service staff across the coming years in line with what is affordable to the State, put pension provision on a more sustainable footing and secure industrial peace so that our public service remains a rewarding place for those who work in it and continues to deliver for those who depend on it.  I will now take these proposals, which will see the Lansdowne Road Agreement extended, to Government. Arrangements will also be made to put them to ballot across the range of public service sectors to which they apply’.

The full text of the proposals is available here.

ENDS

Notes for Editors

The Agreement runs from 2018- 2020 and has a cost over that period of €887 million – (this is approximately equivalent to the cost of the current LRA at €844 million).

The benefits to different income groups range from 7.4 per cent to 6.2 per cent over three years.  Once again these proposals are progressive.

They include restoration of pay cuts and the conversion of the existing FEMPI Pension Related Deduction (PRD) into a permanent Additional Superannuation Contribution while providing modest increases in the threshold providing some relief.

At the end of this Agreement pay cuts will be restored to all public servants earning up to €70,000 which is equal to almost 90 per cent of public servants.

The PRD measures will ensure that over 70 per cent of public servants will be making a further permanent contribution to their pensions.

The yield from PRD will fall from over €700 million at present to some €550 million in 2020 which will now become a permanent additional pension contribution.

This will make a major contribution to the future sustainability of public service pensions.

The additional hours worked under previous agreements have been retained.

The Agreement allows for on-going co-operation with change and productivity improvements and industrial peace until 2020.

After this Agreement most of the outstanding €1.4 billion of pay cuts and PRD relief will have been addressed through pay increases and retention of PRD as a permanent measure.

Principal Features of the Agreement:

Pay Measures

2018

  • 1 January 2018 annualised salaries to increase by 1%;
  • 1 October 2018 annualised salaries to increase by 1%.

2019

  • 1 January 2019 annualised salaries up to €30,000 to increase by 1%;
  • 1 September annualised salaries to increase by 1.75%.

2020

  • 1 January 2020 annualised salaries up to €32,000 to increase by 0.5%;
  • 1 October 2020 annualised salaries to increase by 2%.

Public Service Pensions

Public Servants who are Members of pre-2013 Pension Schemes with Standard Accrual Terms

1 January 2019

Band Rate
Up to €32,000 Exempt
€32,000 to €60,000 10%
€60,000 plus 10.5%

 

1 January 2020
Band Rate
Up to €34,500 Exempt
€34,500 to €60,000 10%
€60,000 plus 10.5%

 

All Public Servants who are Members of the Single Public Service Pension Scheme

1 January 2019

Band Rate
Up to €32,000 Exempt
€32,000 to €60,000 6.66%
€60,000 plus 7%

 

1 January 2020
Band Rate
Up to €34,500 Exempt
€34,500 to €60,000 3.33%
€60,000 plus 3.5%

 

Public Servants who are Members of pre-2013 Pension Schemes with Fast Accrual Terms

(Unchanged)

Band Rate
Up to €28,750 Exempt
€28,750 to €60,000 10%
€60,000 plus 10.5%