Pensions Payment Updates
Pension Restoration
The Alliance of Retired Public Servants recent correspondence with the minister for Public Expenditure and Reform Mr Paschal Donohoe T.D., highlighting a number of issues that occurred of interest to its members,
Garda organisations access to the WRC and Labour Court
Labour Court proposals in relation to GRA and AGSI claims’
Calls for urgent revisiting of pay restoration under Landsdowne Road
and an official statement to "the wider implications " of the Labour Court recommendations in relation to the continued operation of the Landsdowne Road Agreement requiring careful consideration It was pointed out that these issues were clearly "game changers" which are greatly impacting on the growing concerns of public service pensioners, as they are on serving public servants pension.
“The Alliance now believes that it is now time to revisit pension arrangements.
The overwhelming view is that the low level and slow pace of pension restoration under the FEMPI 2015 Act is wholly inadequate and pensioners have to be involved, like the public service unions, in official discussions which now appear imminent in regard to FEMPI and related matters.
What is absolutely clear, however, is that the concept of 150,000 public service pensioners having no access to third party industrial relations machinery, on a permanent or ad hoc basis, in the event of possible disagreement in due course with government about pension restoration and pension increases is increasingly untenable. In effect, pensioners voices are being ‘gagged’ and it is important that pensioners lobby their public representatives demanding that their voices be heard.
Lobbying at a local level is an effective method of ensuring that your concerns are noted and can be fed up to national level.
Points to remember when talking to your public representative are;
Average Public-Sector Pension is approx. €20,000.00.
Unlike Private Sector workers,
Public Sector pensioners have NO rights representation in public pay agreements,
It is pretty ironic that over 100 years after the 1916 rising, the state uses emergency law against the very people who spent their lives serving their country.
This is at a time when the third year running, we have the fastest growing economy in EU.
We now must recognise that emergency is truly over and we must look into the future instead of the past with refreshed positivity and enthusiasm.
Last year we covered pension restoration which were introduced by the Government in June 2015.
The second phase of this restoration is due on 01 January 2017. This second phase will see an additional €500.00 per anum restored to those affected.
As a result, any public service pensioner on a pension of less than €26,000.00 per anum will no longer be subject to the pension reduction.
IDFVA is continuing to work with the Alliance to have the exemption threshold increased, for full pension restoration sooner as soon as is possible ahead of the 2015 Government announcement.
The Alliance of Retired Public Servants recent correspondence with the minister for Public Expenditure and Reform Mr Paschal Donohoe T.D., highlighting a number of issues that occurred of interest to its members,
Garda organisations access to the WRC and Labour Court
Labour Court proposals in relation to GRA and AGSI claims’
Calls for urgent revisiting of pay restoration under Landsdowne Road
and an official statement to "the wider implications " of the Labour Court recommendations in relation to the continued operation of the Landsdowne Road Agreement requiring careful consideration It was pointed out that these issues were clearly "game changers" which are greatly impacting on the growing concerns of public service pensioners, as they are on serving public servants pension.
“The Alliance now believes that it is now time to revisit pension arrangements.
The overwhelming view is that the low level and slow pace of pension restoration under the FEMPI 2015 Act is wholly inadequate and pensioners have to be involved, like the public service unions, in official discussions which now appear imminent in regard to FEMPI and related matters.
What is absolutely clear, however, is that the concept of 150,000 public service pensioners having no access to third party industrial relations machinery, on a permanent or ad hoc basis, in the event of possible disagreement in due course with government about pension restoration and pension increases is increasingly untenable. In effect, pensioners voices are being ‘gagged’ and it is important that pensioners lobby their public representatives demanding that their voices be heard.
Lobbying at a local level is an effective method of ensuring that your concerns are noted and can be fed up to national level.
Points to remember when talking to your public representative are;
Average Public-Sector Pension is approx. €20,000.00.
Unlike Private Sector workers,
Public Sector pensioners have NO rights representation in public pay agreements,
It is pretty ironic that over 100 years after the 1916 rising, the state uses emergency law against the very people who spent their lives serving their country.
This is at a time when the third year running, we have the fastest growing economy in EU.
We now must recognise that emergency is truly over and we must look into the future instead of the past with refreshed positivity and enthusiasm.
Last year we covered pension restoration which were introduced by the Government in June 2015.
The second phase of this restoration is due on 01 January 2017. This second phase will see an additional €500.00 per anum restored to those affected.
As a result, any public service pensioner on a pension of less than €26,000.00 per anum will no longer be subject to the pension reduction.
IDFVA is continuing to work with the Alliance to have the exemption threshold increased, for full pension restoration sooner as soon as is possible ahead of the 2015 Government announcement.
Information received (Information from the Department.) no one will be at a loss because of the change over i.e. if you get €15666.00 per year you will still get €15666.00 per year but the date will change over 4 months i.e. 20 of June, 23 July, 26 of August 29 Sept and 31 October. This will result in no loss of income. We are now awaiting written confirmation to these dates.
Meeting Attended by ONET, IUNVA and ARCO
The Department of Defence has advised ARCO that the payment of the monthly pension will change from the current 20th of the month to the end of the month over the next year.
Military Pensions
At a meeting on 25th February between Department of Defence Officials and representatives of the ONE, IUNVA and ARCO the Associations were informed that the Department plans to return the pension payment date from the 20th of the month back to end-of-month, as had applied historically.
Military pensioners are currently paid a full month’s pension 10 days in advance. The 20th had been ‘imposed’ on the Department quite some years ago by the PMGs Office for operational reasons that no longer apply today. Before then, pensions had always been paid at end-of-month and in arrears. However, the current ‘advance’ element results in overpayments where pensioners pass away during the latter part of the month (20th – 30th/31st). This, plus the treasury management costs of earlier draw-down by the Exchequer of monthly pensions, gives rise to a substantial overhead cost.
The move will also significantly reduce the need to contact next-of-kin/relatives to discuss the recovery of overpayments (that arise due to the advance payment) at the sensitive time following the pensioner’s death.
The associations noted that many people will have their financial arrangements organised around the 20th and that having to change direct debits (as opposed to standing orders) can be slow. It was also pointed out that there may also be a lack of knowledge among some pensioners that they are, in fact, being paid 10 days in advance.
There was a general discussion around these and other concerns such as the timeframe for implementation. Mindful of this, the Dept emphasised that it will be done on a stepped, phased basis in a way that is as ‘painless’ as possible for pensioners (for example, starting a phased move in June, Sept and finishing in November 2013). The December pension payment would, for payroll operational reasons, still be paid pre-Christmas.
When the Dept. finalises its timetable for phased roll-out of the move, it will be writing to all pensioners in advance. In the meantime, the associations were invited to revert in the coming weeks with any other thoughts or concerns they have on this and also to ‘get the word out’ to their members.
Military pensioners are currently paid a full month’s pension 10 days in advance. The 20th had been ‘imposed’ on the Department quite some years ago by the PMGs Office for operational reasons that no longer apply today. Before then, pensions had always been paid at end-of-month and in arrears. However, the current ‘advance’ element results in overpayments where pensioners pass away during the latter part of the month (20th – 30th/31st). This, plus the treasury management costs of earlier draw-down by the Exchequer of monthly pensions, gives rise to a substantial overhead cost.
The move will also significantly reduce the need to contact next-of-kin/relatives to discuss the recovery of overpayments (that arise due to the advance payment) at the sensitive time following the pensioner’s death.
The associations noted that many people will have their financial arrangements organised around the 20th and that having to change direct debits (as opposed to standing orders) can be slow. It was also pointed out that there may also be a lack of knowledge among some pensioners that they are, in fact, being paid 10 days in advance.
There was a general discussion around these and other concerns such as the timeframe for implementation. Mindful of this, the Dept emphasised that it will be done on a stepped, phased basis in a way that is as ‘painless’ as possible for pensioners (for example, starting a phased move in June, Sept and finishing in November 2013). The December pension payment would, for payroll operational reasons, still be paid pre-Christmas.
When the Dept. finalises its timetable for phased roll-out of the move, it will be writing to all pensioners in advance. In the meantime, the associations were invited to revert in the coming weeks with any other thoughts or concerns they have on this and also to ‘get the word out’ to their members.