Information Circular No 29/2010 – The National Recovery Plan 2011 – 2014

By Industrial Relations Officer

Defence Sector Reductions:                         The strength of Defence Sector will be reduced by 500 over the four years of the plan with a reduction of 300 personnel in 2011 and a further reduction of 100 personnel in each of the years 2012 and 2013.

 Organisation and Structure:  The overall organisation and structure of the Defence Forces will be reviewed.

 Public Service Pension Reforms:      Retired Public Service pensioners (Including personnel who retire before the end of February 2012) will make the following contribution from their annual pensions: 

Annual Public Service Pension (€) Reduction Rate
First 12,000 0% – No Change
Between 12,001 and 24,000 6%
Between 24,001 and 60,000 9%

 Extension of Retirement Date to Feb 2012:            In order to avoid a destabilising rate of retirements in 2011 and to manage the cost in both 2011 and 2012, the Government has decided to extend the “grace period” under which pensions are calculated by reference to the pre-cut rates of public service pay to the end of February 2012.

 Personnel who Retire after the end of February 2012:               Since personnel who retire after the end of February 2012 are subject to an average pay reduction of 7% (Introduced on 1st January 2010), reducing both their pension and lump sum, the Government has decided not to apply the pension cuts to this group.

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