Retired state staff face pension cuts of up to 12%

AMID considerable criticism that they had escaped the worst effects of the recession, the Government has decided to cut the pensions of its retired employees by as much as 12%.

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.