LABOUR MINISTERS have moved to defuse a potentially damaging confrontation with teacher unions over public pension reform.
Minister for Public Expenditure and Reform Brendan Howlin, responding to claims by the unions that his new pensions Bill is “larcenous” and illegal, said he was available for an early meeting with teachers’ representatives.
Tánaiste Eamon Gilmore, moved to assuage union concerns by saying the changes were necessary and would make no difference to staff on lower incomes.
However, Mr Gilmore and Mr Howlin both rejected a contention by the unions that new pension rules will mean teachers contribute more than they benefit from their pension scheme.
Mr Howlin said the legislation he published this week did not involve any increase in contributions for teachers from the current 6.5 per cent rate.
Mr Howlin also said teachers concerns, as well as an actuarial report commissioned by the three teacher unions, were considered before the Bill was drawn up.
“The changes to pensions for new entrants set out in the Bill provides for a fairer system of pensions that is based on your career average earnings,” he said.
Asked about teachers’ criticism of the Bill, Taoiseach Enda Kenny said everyone was entitled to their view. “We’ve considered it, we’ve published it and we believe it is a fairer, more equitable system in everyone’s interest and it will apply for all those entering public service from the time the Bill is enacted.”
Defending the reforms introduced by his Government, he said they represented difficult steps to progress but there was a prize at the end: “Your own economic sovereignty, a leaner more efficient machine and better opportunities for prosperity.”
Speaking yesterday in Cork, Mr Gilmore moved to play down any possible confrontation with public sector unions following the criticism from the teaching sector.
Ireland, he said, had a problem in terms of its demography and dependency and how it was going to pay pensions in 30 or 40 years time and what the Government was seeking to do was address it now rather than let it worsen.
