Gardaí, soldiers, judges and senior State office-holders may have to pay significantly higher pension contributions in future than other public service personnel.
The result of upcoming pay talks could reduce some of the gains by gardaí under their highly controversial €50 million deal with the Government last November.
Senior figures in the public service trade union movement believe the talks with Government may result in a deal which would involve the 23,000 State employees who have fast-accruing pensions having to pay more than other public servants who have to contribute for 40 years to secure full benefits.
Senior public service union figures also believe that groups such as nurses are unlikely to secure additional top-up pay rises as part of the negotiations with the Government to address difficulties in retaining existing staff.
Highly-placed union figures also said the Government had signalled that maintaining the controversial requirement for staff to carry out additional working hours was one of its “red lines” in negotiations.
Unions will press for the abolition of the additional 15 million unpaid working hours conceded under previous agreements and which are hugely unpopular among staff. However, senior figures were not confident that any major changes to the existing position would emerge.
Restrictions
Senior union figures also believe the Government will argue that restrictions on public finances next year will pose problems in granting rises for 300,000 State employees in 2018. However, they maintained unions would have to sell any deal to members, and there could not be a zero increase next year.
Coming on foot of the recommendation of the Public Service Pay Commission that about 250,000 longer-serving public service staff should contribute more for their pensions, senior union figures believe this issue will be a major feature in the talks.
The likelihood is that the introduction of any such higher contribution would be timed to coincide with the elimination of the existing public service pension levy, an emergency measure put in place in 2009, and which effectively represented the first public service pay cut.
Union sources believe three different outcomes for particular categories of staff could emerge in relation to pensions from the talks.
One outcome would be for groups who have fast-accruing pensions – including gardaí and judges who receive their pensions earlier than the 40 years of service required for others. Such pensions are considered to be over 50 per cent more valuable than those available in the private sector.
Legacy pension scheme
Another outcome would be for those employed before 2013 who are covered by the standard or legacy pension scheme considered to be between 12 per cent and 18 per cent more valuable than those available in the private sector, while the final outcome would be for those appointed after 2013.
Sources suggested that those appointed after 2013 could see reductions in their existing pension levy deductions, which would have the effect of increasing take-home pay and going some way towards addressing the two-tier pay structure for more recent public service entrants.
