Retired public service staff likely to have pensions cut

SPECULATION is mounting that the Government will cut the pensions of existing public service pensioners in the upcoming budget.

The pensions of retired public servants are currently linked to the pay of existing public service workers in that any increases in pay to the latter are also applied to the pensions of the former.

While Finance Minister Brian Lenihan cut the pay of public servants in the last budget by an average of 7%, pensioners did not suffer the equivalent loss to their entitlement.