Benchmarking: is it an error or just a charade?

WE are told that one of the principal reasons why the benchmarking body recommended no pay increase to most public service workers in its review published last week was that it took into account the pension arrangements of these workers.

The benchmarking body applied a discount of 12% of salary to take account of the superior value of these pensions, saying that pension arrangements in the public service were “significantly more valuable” than those in the private sector.

However, in 2002 the then benchmarking body had already taken public service pensions into account and this was one of the reasons why it decided to limit its recommended pay increases at that time.

The 2002 benchmarking report states:

“The body commissioned research into pension arrangements in the public service and the private sector. Cost differences between the sectors were considered by the body and taken into account in its recommendations on salary and pay levels.”

In think four questions arise:

1. Was the first report in error — in which case the second report could be justified only at the expense of the first?

2. Is the second report in error — in which case, why did the benchmarking body recommend no pay increase for most public service workers?

3. Are these benchmarking reports nothing more than a charade (in which case they should be scrapped)?

4. Or was last Thursday Groundhog Day?

Seán Fallon

Killakee Walk

Firhouse

Dublin 24