Enda Kenny wants cost of public pensions to be examined

Taoiseach Enda Kenny has called for the cost of public pensions to be examined as part of public pay talks next year, risking fresh friction between unions and the Government over the restoration of pre-crash pay levels.

It follows Public Expenditure and Reform Minister Paschal Donohoe’s recent remarks that the “widened” gap between public and private pension pots is of concern amid suggestions that pension increases for retired public-sector workers could be scrapped.

As nurses and 30,000 Siptu health workers prepare to ballot for industrial action, and following fraught negotiations with teachers and gardaí, Mr Kenny admitted the restoration of public pay remains a key concern for the Government.

While stressing the Public Service Pay Commission must be allowed conduct its own review of the situation and report back by early summer without interference, Mr Kenny said the cost of public pensions must be considered.

“The Government has decided here that the Public Pay Commission has been asked to take into account the value of public pensions,” said Mr Kenny.

“Obviously the Government is fully supportive of Lansdowne Road and the structures are there to roll back Fempi,” he said, referring to emergency legislation which allowed for a series of pay cuts during the recession.

“Clearly, the gap between private pensions and public pensions has grown.”

Mr Donohoe has suggested that public pension levels must be examined as part of any new pay deal, saying that “the difference between public and private pensions has now widened”.

The view has been echoed by Government officials who suggested pension increases for retired public sector workers may be scrapped.