HE GAP BETWEEN the value of private and public pensions is a concern for the government as it enters a new year.
In the midst of strike action in 2017, with Siptu announcing yesterday that it is to ballot some 25,000 health service staff, the government said the Public Pay Commission should be allowed to do its work – and that includes looking at a viable path forward in the cost of public sector pensions.
Retired public sector workers have generally seen an increase in their pension as the salary of the person in their old job increases. It’s understood the government believes that halting such a mechanism could save millions.
“In respect of public pay, the government has decided here that the Public Pay Commission has been asked to take into account the value of public pensions.
“Clearly, the gap between private pensions and public pensions has grown so the government are anxious that the Public Pay Commission will be allowed to do its work and report back to government in due course,” Kenny recently told reporters.
The Public Pay Commission will advise the government about pay for hundreds of thousands of public sector workers.