Minister Donohoe conducts annual review of the Financial Emergency Measures in the Public Interest Legislation
From Department of Public Expenditure, NDP Delivery and Reform
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From Department of Public Expenditure, NDP Delivery and Reform
Published on
Last updated on
The Minister for Finance and Public Expenditure & Reform, Paschal Donohoe TD, has today (29 June 2017) laid his 2017 Annual Review of the operation and effectiveness of the Financial Emergency Measures in the Public Interest (FEMPI) legislation before the Houses of the Oireachtas.
The report concluded that while immediate repeal of the FEMPI legislation is unaffordable, the proposed Public Service Stability Agreement 2018-2020 represents a negotiated solution for dismantling the emergency legislation over the coming years.
Speaking to the Dáil, the minister said:
"I believe that in the new Public Service Stability Agreement 2018-2020, or Lansdowne Road II, we have achieved a balanced approach to public service pay that is compatible with the economic conditions of the state, national competitiveness and available revenues.
"The proposed agreement provides a series of affordable pay increases which will unwind FEMPI pay reductions for all public servants earning up to €70,000, which is equal to almost 90% of public servants over the period to 2020. As such, this provides a clear and realistic route out of FEMPI.
"In total the benefits under the agreement range from 6.2% to 7.4% and again we have weighted these benefits towards those on lower pay. As well as being fair to public servants it is also fair to those who rely on public services and to the exchequer.
"Under the proposed terms of the agreement, public servants will make an additional contribution to their pensions, which is reasonable and reflects the higher value of these pension terms compared to the private sector. Crucially, this will place public service pensions on a more sustainable long-term footing."
ENDS
Public Service Stability Agreement 2018-2020
Pay Measures
2018
2019
2020
Additional Superannuation Contribution
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% |
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% |
See the full text of the minister’s speech here.