Over 7,000 An Post retirees receiving a 7% increase in their pensions
In a significant development, An Post, the Irish postal service, has reached an agreement with its unions that will see more than 7,000 of its pensioners receive a 7% increase in their pensions.
The deal, negotiated by the Services, Industrial, Professional and Technical Union (SIPTU), follows a comprehensive review of the scheme conducted by Mercer, covering the period up to the end of 2024.
The agreement eliminates the gap between pay and pensionable pay that had previously been a cause for concern for the Communications Workers Union (CWU). This means that all pay increases secured over the last 3.5 years will be reflected as pensionable pay for An Post workers.
As a result, An Post pensioners can expect an additional 7% increase to their pensions in 2025. This increase is not a one-time adjustment; it is a reflection of the total accumulated increase in pensionable pay, which stands at 22%.
The deal also includes a backdated increase. From January 1st of this year, An Post pensioners will see a 6% increase, with an additional 1% backdated to the start of June. This move is expected to provide a much-needed boost to retirees whose pensions have been eroded by inflation in recent years.
The agreement also ensures that €345 million will be retained in the fund for investment, further securing the long-term sustainability of the scheme.
The Pension Accord, which regulates the funding of An Post's superannuation schemes, will continue to be crucial in ensuring the scheme's sustainability. The 2% cap in annual increases, as provided for in the Pensions Accord agreement between An Post's management and unions, remains in place. This cap is considered vital to prevent the elimination of the surplus, which could have implications from a funding, risk, and investment perspective.
The immediate consequence of abolishing the 2% cap would be no increases to either employees or pensioners. However, a full investment strategy review by the Trustees would be triggered if the 2% cap is abolished, as this would represent a fundamental change in the scheme's funding position.
Since 2012, pensions at An Post have increased by just over 15%, while pay has gone up by about 25%. This agreement marks a significant step towards bridging the gap between the two, ensuring fairness for both current and retired employees.
This development is undoubtedly good news for retired members of staff and a testament to the power of collective bargaining. The agreement underscores An Post's commitment to its employees, both past and present, and its dedication to ensuring a secure retirement for its pensioners.
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