Haddington Road Agreement 2013 - 2016 and Financial ... - TUI

Teachers’ Union of IrelandAontas Múinteoirí ÉireannHaddington Road Agreement2013 - 2016andFinancial Emergency Measuresin the Public Interest (FEMPI) Act2013FOR INFORMATION OF MEMBERSSeptember 2013....

....CONTENTS3. HADDINGTON ROAD AGREEMENT 2013 - 201621. FINANCIAL EMERGENCY MEASURES IN THE PUBLIC INTEREST ACT 2013EXPLANATORY MEMORANDUM26. FINANCIAL EMERGENCY MEASURES IN THE PUBLIC INTEREST ACT 2013

HADDINGTON ROAD AGREEMENT 2013 - 2016ANDFINANCIAL EMERGENCY IN THE PUBLIC INTEREST ACT 2013Education sector talks under the auspices of the Labour Relations Commission(LRC) were held in late May 2013. The talks resulted in issue, by the LRC, ofthe proposed Haddington Road Agreement.With effect from 1st of July 2013, this Act cut the pay of all public servantsearning over €65,000 and froze the increments of public servants not covered bya collective agreement.On 5th of June 2013, the Oireachtas enacted the Financial Emergency Measuresin the Public Interest (FEMPI) Act 2013. With effect from 1st of July 2013, thisAct cut the pay of all public servants and froze the increments of public servantsnot covered by a collective agreement. The FEMPI Act also provides (undersection 2B) that the relevant Minister can set or amend terms and conditions soas to reduce remuneration or increase the working hours of public servants.1Following a decision of the Executive Committee, TUI members will ballot onwhether to accept or reject the proposed Haddington Road Agreement betweenSeptember 2, 2013 and September 20, 2013. As the implications of theproposed Haddington Road Agreement and the FEMPI Act are different foreach member, the Executive Committee decided to issue the Ballot without arecommendation.For the information of members, the following document contains the textof the Haddington Road Agreement and the Education Sector Appendix.For ease of reading, areas of the text of the proposed Agreement which aredifferent to the previously rejected ‘Croke Park 2’ proposals are in Green.The document also contains the full text of the Financial Emergency in thePublic Interest (FEMPI) Act 2013 and the Explanatory Memorandumwhich accompanied the FEMPI Bill.

HADDINGTON ROAD AGREEMENT 2013 - 2016LRC PROPOSALSPUBLIC SERVICE STABILITYAGREEMENT 2013 - 20163THE HADDING TON ROADAGREEMENTMay 2013

HADDINGTON ROAD AGREEMENT 2013 - 2016CONTENTS5 Foreword by the Labour Relations Commission (LRC)6 Executive Summary6 Introduction8 Pay and Productivity Measures11 Workplace Reform15 Exit Mechanisms15 Implementation16 Appendix: Proposals for Education Sector4

HADDINGTON ROAD AGREEMENT 2013 - 2016FOREWORDThe Labour Relations Commission issued earlier proposals to the parties in February 2013 and thoseproposals were not accepted by the Trade Union side. At the behest of Government the Chief Executive of theCommission and the Director and Deputy Director of the Commission’s Conciliation Service then met withall of the Trade Unions and Associations representing staff in the Public Service in order to assess thepotential that might exist for further engagement in an effort to find an agreed way forward. The Commissionwas made aware that Government’s intention to secure the identified level of payroll and pension savingsremained and that if necessary, the Government would legislate to achieve those savings. The Governmentalso emphasised to the Commission its preference for a collective agreement as the means to secure theidentified level of savings and its commitment to engage fully in any process the Commission would put inplace to attempt to achieve an agreement.The Commission, following its process of assessment, took the view that it should facilitate dialogue andengagement between the parties to explore to the fullest the potential for agreement. The Commission hastherefore chaired extensive and intensive conciliation and mediation between Government and all TradeUnions and representative bodies across every sector of the Public Service. All aspects of the challenge offinding agreement were explored in great detail in a process which focused on each sector of the PublicService separately. That process concluded on the morning of 21st May 2013.5This document captures all of the positions reached in that process of engagement and sets outs the detail ofpotential collective agreements for consideration by the Trade Unions and representative associations. TheCommission understands that the Government will conclude a collective agreement on these terms with anyTrade Union or association confirming its acceptance of the position reached and set out in this document.The Commission is also clear that where a collective agreement is reached, the terms of that agreement willapply to the staff covered by that agreement as opposed to any other terms which may be set out inlegislation, circular or regulation designed to achieve the payroll and pension savings identified byGovernment.The Labour Relations Commission confirms to all parties that the positions set out in this document representthe limit of what can be achieved by negotiation between the parties in all of the circumstances applying atthis time. On that basis the Commission puts the positions set out as its proposals for collective agreementbetween the parties. Any anomalies or matters of practical application that arise should be addressed using theprocedures contained in this agreement.Kieran Mulvey Kevin Foley Anna PerryChief Executive Director of Conciliation Deputy Director of Conciliation

HADDINGTON ROAD AGREEMENT 2013 - 20166EXECUTIVE SUMMARYIreland is committed to reducing its generalgovernment deficit – the gap between Governmentrevenues and spending, which must be financed byborrowing – to less than 3% by 2015.As the Public Service Pay and Pensions Billaccounts for 35% of spending, the Governmenthave decided that a proportionate contribution tothe necessary overall additional expenditurereduction required must come from this area.The Parties are agreed on the following series ofpay and productivity measures to be implementedin order to achieve the necessary €1 billion savingsin the cost of the pay and pensions bill over the 3years from 2013 to 2015.The Parties acknowledge the significant level ofreform that has taken place across the publicservice under the Public Service Agreement 2010-2014. However, they also agree that furthermeasures are required to underpin the delivery of amore integrated, efficient and effective publicservice. Under this Agreement further sustainablereform measures will be implemented in thefollowing areas:• Redeployment• Performance management• Flexible working arrangements• Work-sharing arrangements• Workforce restructuring.The Government reaffirms the commitment givenunder Paragraphs 1.6 and 1.15 of the PublicService Agreement in relation to pay rates ofpublic servants and compulsory redundancy,subject to the provisions set out in this Agreement.This Collective Agreement, subject to ratificationby the Parties, will apply for a period of 3 yearsfrom 1st July 2013. The pay and productivityprovisions set out in this Agreement will beimplemented with effect from 1st July 2013.1 INTRODUCTIONContext1.1 Since 2008, expenditure reducing andrevenue raising measures designed to saveapproximately €25 billion (around 16% of2011 GDP) have been implemented. Thesemeasures have been wide-ranging and havehad a significant impact on the livingstandards of all the citizens of the State,including public servants.1.2 Ireland is committed to reducing its generalgovernment deficit – the gap betweenGovernment revenues and spending, whichmust be financed by borrowing – to lessthan 3% by 2015. Given the volume ofborrowing required, the State’s debt-to-GDP ratio is set to rise further to over120% of GDP and the proportion ofrevenue that goes towards servicing thatdebt will also increase.1.3 The deficit for 2012 is estimated to be justunder 8% of GDP, or over €15 billion inExchequer terms. The Parties recognise thevery large challenge remaining, both interms of revenue streams and reducingpublic expenditure, to reduce that deficit tothe necessary sustainable level over theyears ahead.1.4 The Government’s Medium Term FiscalStatement indicates that, in addition to theoverall fiscal consolidation of €3.5 billionrequired for 2013, an additional €3.1 billionin savings and revenue-raising measuresmust be identified for 2014 and €2 billionin 2015.1.5 The scale of consolidation required canonly be achieved with a contribution fromall the main components of publicexpenditure. As the pay and pensions billaccounts for 35% of spending, aproportionate contribution to the necessaryoverall additional expenditure reductionrequired must come from this area. Thiswill involve a further reduction of some €1billion in the cost of the pay and pensionsbill over the 3 years from 2013 to 2015.These savings must be over and abovesavings already identified for the pay billthrough to 2015 and a substantial portion,some €300 million, must be delivered in2013.

HADDINGTON ROAD AGREEMENT 2013 - 2016Contribution of public servants to date1.6 The Parties acknowledge the substantialcontribution made by public servants to thefiscal consolidation process to date. Thiscontribution has involved:• Non-payment of general round increasesunder the terms of the Towards 2016Review and Transitional Agreement andcertain other 3rd party recommendations;• Pay reductions averaging 14% arisingfrom the introduction of the PensionRelated Deduction in 2009 and the payreductions introduced in January 2010;• An ongoing pay freeze; and• Deductions from public servicepensioners.Furthermore, the ongoing efforts ofworkers across the Public Service tomaintain and enhance services to thepublic, as staff numbers have reduced bymore than 30,000, is also acknowledged.The Parties also recognise that €1.5 billionin pay and non-pay savings were deliveredwith the co-operation of staff under thePublic Service Agreement 2010-2014 in itsfirst two years, as outlined in the annualprogress reports published by theImplementation Body. Significant reformof the way public services are delivered hasalso been achieved and is detailed in thesereports.This Agreement1.9 This Agreement sets out measures onproductivity, cost extraction and reformwhich together will achieve the targetedpay bill reduction. The Agreement buildson the measures set out in the PublicService Agreement 201 0–2014 whichbegan the process of delivering anincreasingly integrated and more productivePublic Service, with greater standardisationof employment conditions within andacross sectors of the Public Service.1.10 The Parties agree to continue to workwithin the framework of the Public ServiceAgreement and reaffirm the overallcommitments provided within it, subject tothe matters set out in this Agreement. TheParties will also continue to co-operatefully with change and reform measuresadvanced under the framework of thePublic Service Agreement.1.11 The Parties are agreed that the PublicService should continue to supportemployment and activation measures forthe unemployed, includingapprenticeship/traineeship opportunities.The parties agree to work together tosupport the development andimplementation of well-designedemployment initiatives within the PublicService.1.12 This Agreement, subject to ratification bythe Parties, will apply for a period of 3years from 1st July 2013.Review of this Agreement1.13 The Government reaffirms, subject toParagraph 1.14 below, that public servicepay and any related issues will not berevisited over the lifetime of thisAgreement.1.14 However, in the event that thecommitments or assumptions reaffirmedunder this Agreement must be revisited, theParties will meet to discuss thecircumstances that had arisen and theimplications for the Agreement.The Government confirms, in this regard,that it will not act without prior engagementwith the parties on what may be required.7

HADDINGTON ROAD AGREEMENT 2013 - 201682 PAY AND PRODUCTIVITYMEASURES2.1 The Parties agree that the followingmeasures will be implemented in order togenerate the required saving of €1 billion inthe Exchequer pay and pensions bill by2015.2.2 Unless otherwise specified, the measuresset out in this section and any sectoralappendix to this part will be implementedfrom 1st July 2013. The Parties note that anumber of these measures will requirelegislative change. The measures set out inthis section will be applied save as may bevaried in relevant sectoral appendices.2.3 When economic circumstances allow andthe public finances are restored to asustainable position, the pay measures thathave applied to public servants, includingthose under this Agreement, will bereviewed. As was stated in Paragraph 1.16of the Public Service Agreement 2010 –2014, it is reaffirmed that priority will begiven to public servants with pay rates at€35,000 or less in that review.Additional working hours2.4 The standard working hours of publicservants will increase as follows:• Those with a working week of 35 hoursor less (net of rest breaks) will increaseto a minimum of a 37 hour week. Theimplementation of these additional hoursfor specific groups is subject to thearrangements set out in Appendix 9.• Those with a working week that isgreater than 35 hours but less than 39hours (net of rest breaks) will increaseto a 39 hour week.• Working hours of those currently with anet working week of 39 hours orgreater will remain the same. However,an hour of overtime worked each weekfor these grades will be unpaid until 31stMarch 2014.2.5 The implementation of additional hourswill be on the basis of the following phasedarrangement:• The first 2 hours and 15 minutes will beimplemented from 1st July 2013.• Any remaining liability will beimplemented from 1st July 2015.Management will allow persons to opt toremain on their current hours withappropriate pay adjustments for a period,after which the provisions of Paragraph3.15 will apply.The actual implementation of theseproposals will require detailed consultationat workplace level in order to maximise thecapacity to accommodate issues foraffected individuals.Extra hours worked will be deployed andmay be aggregated on a daily, weekly orannual basis as best meets service demands,following local consultation, based on theprinciples agreed in each sector.The gross working week, inclusive ofbreaks, will increase as appropriate toreflect the increased net hours worked anddivisors for the calculation of overtime willbe adjusted accordingly.Staff will co-operate with the revisions torosters necessary for the full deployment ofthe additional hours and with anyconsequential revisions.No cost increasing claim will be madeconsequential on the increase in workingtime, including of leave.2.12 Nothing in this Agreement shall serve torestrict working arrangements involvinggreater flexibility in those sectors wherethey currently exist.Overtime2.13 Overtime arrangements are revised asfollows:For those on salaries of up to €35,000(inclusive of allowances in the nature ofpay), overtime will be paid at time and ahalf at the first point of the appropriatescale. This formula will not apply to anyscale where this provision would result inovertime being paid at less than time at anypoint on the scale. In the case of suchscales, the formula set out in (b) below willapply.For those on salaries (inclusive ofallowances in the nature of pay) of €35,000or greater, overtime will be paid at the rate

HADDINGTON ROAD AGREEMENT 2013 - 2016of time and a quarter at the individual’sscale point.2.14 Divisors for the calculation of overtime willbe adjusted to take account of anyadditional hours provided for above.2.15 For those grades currently with a workingweek of 39 hours or more (net of restbreaks), an hour of overtime worked eachweek will be unpaid until 31st March 2014.Premia2.16 Sunday staffing and other reforms:Management will actively seek to reducethe overall numbers of staff rostered forduty on Sundays. At the same time, all staffwill co-operate with measures to achievethe most cost-effective skill-mix andstaffing ratios to meet service needs. Anintensive engagement process will beginimmediately to review existing skill mixand staffing ratios to ensure that theseidentified needs are met. Co-operation willbe forthcoming for other measures toimprove efficiency and effectiveness ofhospital services, in particularconcentrating as much care provision aspossible into the Monday to Saturdayperiod. Staff co-operation will beforthcoming for the establishment ofhospital groups and for the re-organisationof services within and between thosegroups.2.17 Twilight payments and any equivalentpayments across sectors, will no longer bepayable.Increments and related balancingmeasures2.18 For those on salaries below €35,000(inclusive of allowances in the nature ofpay), a three month increment freeze willapply during the Agreement. This freezewill take effect after the next increment ispaid with the following increment beingawarded in fifteen months rather thantwelve, or equivalent if the incrementinterval is longer.2.19 For those on salaries between €35,000 and€65,000 (inclusive of allowances in thenature of pay), two three-month incrementfreezes will apply (total of a six monthfreeze) during the Agreement. As above,this would take effect after the nextincrement is paid but for two consecutiveyears there would be a fifteen month periodbetween increment dates. If the incrementinterval is longer than 12 months, the freezewill be for a single 6 month period.2.20 For those on salaries above €65,000(inclusive of allowances in the nature ofpay) to the max of the Principal (higher)scale or equivalent in the civil service orsimilar across the Public Service, two sixmonth increment freezes will apply. Thesefreezes will take effect after the payment ofthe next due increment with the followingtwo increments being awarded in 18months rather than 12 months, orequivalent if the increment date is longer.2.21 Incremental progression will be suspendedfor three years for those on salary scalesstarting over €100,000 (inclusive ofallowances in the nature of pay).2.22 Where an employee’s salary (inclusive ofallowances in the nature of pay) surpasses€35,000 during the Agreement, a secondincremental freeze of three months willapply, in accordance with the arrangementsfor those on salaries between €35,000 and€65,000, inclusive of allowances in thenature of pay outlined above.2.23 If a person’s salary increases above€65,000 (inclusive of allowances in thenature of pay) during the Agreement, thepay reduction provisions outlined belowwill apply.2.24 For those currently on the final point on theincremental scale and with salaries between€35,000 and €65,000 (inclusive ofallowances in the nature of pay), thefollowing arrangements will apply, apartfrom those grades with an annual leaveentitlement of 23 days or less, in theinterests of equity:• A total reduction of annual leaveentitlement over the period of theAgreement of 6 days; Or• A cash deduction from salary of anequivalent amount to the value of the 6annual leave days or a half of the mostrecent increment, whichever is the lesser.2.25 For those on salaries between €35,000 and€65,000 (inclusive of allowances in thenature of pay) and who reach the maximumof the scale following a single 15 monthincremental period, a reduction of annual9

HADDINGTON ROAD AGREEMENT 2013 - 201610leave entitlement of 3 days will apply, or anequivalent amount to the value of the 3annual leave days or a quarter of the mostrecent increment, whichever is the lesser.Higher remuneration2.26 In addition to the measures on incrementsabove, the Parties note that the Governmentintends to apply a reduction in pay for thoseon salaries of €65,000 and greater(inclusive of allowances in the nature ofpay) as follows:Annualised amount ofRemunerationReductionAny amount up to €80,000 5.5%Any amount over €80,000but not over €150,000 8%Any amount over €150,000but not over €185,000 9%Any amount over €185,000 10%• For those on salaries (inclusive ofallowances in the nature of pay) above€65,000 to the max of the Principal (higher)scale or equivalent in the civil service orsimilar across the Public Service, thereduction in pay above will be restored tothe pay rate that they would have had, butfor the pay reduction, within a maximum of18 months of the end of this 3 yearAgreement between the parties which isintended to commence with effect from 1stJuly 2013. The restoration will be in twoequal phases – the first after 9 months andthe second 9 months later.• In relation to impacts at the margin, salarieswill not fall below €65,000 as a result ofthe application of this reduction.• Salary scales above €100,000 will bereduced by the appropriate percentagebased on the application of the reductionsabove.• Detailed guidance and circulars in relationto the application of the above measureswill be prepared.• The Government has also indicated that itintends to provide in the legislation for agrace period for pension purposes duringwhich both the reduction in pay and anydeferral of increment progression will bedisregarded.Other pay related measures2.27 Allowances: There will be full cooperationby the Parties with the follow upto the Government’s Allowances Review,taking account of the recommendationscontained in Labour CourtRecommendation 20448. In accordancewith that Recommendation, the Partiesagree to enter into central negotiations witha view to reaching a generally applicableagreement on measures by which lossarising from the elimination of pensionableallowances can be ameliorated. Where adispute arises during the course of thisprocess, the Parties agree to use the agreedindustrial relations machinery appropriateto each sector and to be bound by itsoutcome (see section 5.1).2.28 Travel and Subsistence: The Parties notethat the Government intends to reviewtravel and subsistence arrangements. Therewill be full co-operation by the Parties withthe review and the implementation of astandardised system of travel andsubsistence across the Public Service.2.29 Public Service Pensions: Separately to thisAgreement, the Parties note that theGovernment intends to align the reductionsin public service pensions in payment withthe reductions applied to serving staff. TheParties note that this measure will apply topensions in payment greater than €32,500only.2.30 Use of external consultants by publicbodies: The Staff Side have expressedconsiderable concern at what they believeto be excessive use of external consultantsin the Public Service. The Government, forits part, shares these concerns regarding thecosts to the Exchequer of the use of outsideconsultancy and re-affirms its commitmentto maximising the potential of in-houseexpertise to deliver further savings in thisarea. The recent procurement reformprogramme to achieve between €250m to€600m of savings is welcomed. It isexpected that savings in consultancycontracts will be a key element of thisProgramme.2.31 New Entrant Salary Scales: In order toaddress the imbalance between those whoentered the Public Service since 2011 andthose who entered before that date, revisedincremental salary scales shall be prepared

HADDINGTON ROAD AGREEMENT 2013 - 2016for same grade entrants to each publicservice sector as necessary to incorporatethe revision of salary scales introduced byGovernment Decision in January 2011.2.32 Pension-related Deduction – RateAdjustment: The present rates and bands ofthe Pension Related Deduction are set outin the Table hereunder:Bands and Rates€15,000 Exempt€15,000 - €20,000 5.0%€20,000 - €60,000 10.0%Above €60,000 10.5%As part of the Agreement, it is agreed to reduce the€15,000-€20,000 band rate to 2.5% from 5% toproduce the following Table:Bands and Rates€15,000 Exempt€15,000 - €20,000 2.5%€20,000 - €60,000 10.0%Above €60,000 10.5%3 WORKPLACE REFORM3.1 The Parties re-affirm Paragraph 1.4 of thePublic Service Agreement 2010-2014which states that:“In order to sustain the delivery of excellentpublic services alongside the targetedreduction in public service numbers overthe coming years, the Parties accept thatefficiencies will need to be maxim ised andproductivity in the use of resources greatlyincreased through revised work practicesand other initiatives. The Parties will worktogether to implement this Agreement todeliver an on going reduction in the cost ofdelivery of public services along withexcellent services to the public.”3.2 Accordingly, the Parties have agreed thatthe following measures will beimplemented as a priority over the lifetimeof this Agreement.Further headcount reduction3.3 The Parties recognise that the provision ofadditional working hours and relatedproductivity measures in this Agreementhave the potential to facilitate furtherreductions in staff numbers over the courseof the Agreement, subject to decisions byGovernment in relation to such issues. TheParties accept that it is appropriate to makeprovision for annual pay bill savings inrespect of such reductions.3.4 Redeployment in the Public Service iscritical to supporting the maintenance offront line public services as staff numbersare reduced. The current redeploymentarrangements are being revised to makethem more efficient and effective to ensuremore flexible and faster redeployment bothwithin and across all sectors. It is necessaryto improve the flow of staff across thePublic Service, and to ensure that suitablyskilled staff are available to meet theidentified organisational, operational andbusiness needs of public serviceorganisations.3.5 To assist this process, workforce planningwill become the norm across public servicebodies. Workforce Action Plans will matchresources with business/sectoral policyneeds within the Employment ControlFramework (ECF) disciplines. The processwill support management in identifying theskills deficits as well as staff surpluseswithin organisations as part of a consistentand structured resourcing policy.Redeployment3.6 The Parties reaffirm the commitmentsgiven in paragraph 1.5-1.12 of the PublicService Agreement 2010-2014, includingthose relating to service reconfiguration.3.7 Across all sectors the guidelineredeployment distance will continue to be45km from the current work location or ofthe home address, whichever is the shortercommute. Regard will also be had toreasonable daily commute time (i.e. as perthe Public Service Agreement 2010-2014).In line with the Public Service Agreement2010-2014, redeployment options may ofnecessity be beyond this guideline distanceand in such circumstances, consultationwill take place in relation to the assignmenton offer.11

HADDINGTON ROAD AGREEMENT 2013 - 2016123.8 Where redeployment is not an option andtaking account of the business needs of theorganisation there may be circumstanceswhere voluntary departure would beappropriate. In such situations there will bediscussions with the relevant unions on theterms of any arrangement (which will be inline with any centrally agreedarrangements).3.9 The existing provisions in the PublicService Agreement 2010-2014 arereaffirmed but to enhance managementflexibility and optimise the redeploymentarrangements the following changes will beintroduced for the Civil Service andNCSSBs and for cross-sectoralredeployment:• Departments should identify staff forredeployment as follows:- Where an activity or programme isno longer being carried out, the postsassociated with that activity orprogramme should be deemed to besurplus and available forredeployment. Surplus posts mayalso arise as a result ofrationalisation, reconfiguration,reorganisation or restructuring ofservices or functions or as a result ofthe ECF or in line with businessneeds.- The Department should identify thenumber of posts at each relevantgrade which are surplus and thelocation of the surplus. Once asurplus has been established on thisbasis the identification of staff to beredeployed will proceed as follows:(i) volunteers will be sought for theRedeployment Panel and (ii) if thenumber of volunteers falls short ofthe surplus, LIFO will be applied, asappropriate.• Redeployment must occur seamlesslyacross the Public Service, particularly atregional level. This will continue to befacilitated by the Public AppointmentsService (PAS) which will strengthen thesystems in place to match surplus staffwith vacancies on a geographic basiswithin the guideline distance.Specifically:- The operation of the redeploymentarrangements will be based on the“best fit” for the vacancy in thelocation. In this context, everyopportunity should continue to betaken for re-skilling and reassignmentas the key method to seekto retain and secure employment incomparable roles in the PublicService.- The appropriate match will bedetermined by the PAS inconjunction with the organisation’ssectoral liaison officer/contact pointand its respective management withina period not exceeding one month ofnotification of the vacancy.- To assist the assignment process andto ensure the selection of the “bestfit” for the vacancy, each individualassigned to the Resource Panel mustsubmit a CV with a profile of skills,competencies, knowledge and careerexperience. The PAS in conjunctionwith the receiving organisation willconduct a selection process toestablish the suitability of individualsfor the vacancy concerned.- Where a staff member wishes toappeal a redeployment assignment,whether cross-sectoral or within thecivil service, such an appeal will beconsidered by an agreed adjudicatorwho will issue a decision within theterms of the scheme within 21 daysand whose decision will be bindingon all parties and will be final. In allinstances the individual will berequired to take up the positionoffered in advance of theadjudication process.Workforce restructuring3.10 Significant progress has been made onrestructuring the Public Service since 2008and, in particular, since 2010, under theframework of the Public ServiceAgreement.3.11 However, it is necessary to look at furtherways to streamline the Public Service giventhe ongoing challenges it faces.Specifically, each sector will:• Bring forward proposals for graderationalisation with a view to

HADDINGTON ROAD AGREEMENT 2013 - 2016restructuring grades in each sector by2014; and• Develop and implement proposals tofurther reduce management numbers byincreasing the span of control (ratio ofstaff to management) across allmanagement and supervisory gradeswhere appropriate. This ratio will vary toreflect the business of the organisationconcerned.3.12 In recognition of ongoing resourceconstraints, there will be flexibility aroundtraditional grade demarcations.Strengthening performance management3.13 The Parties are agreed on the need tonurture a high performing Public Service.While progress has been made in this area,it is accepted that further steps need to betaken urgently to strengthen performancemanagement systems and procedures inplace across the Public Service.3.14 Specifically:• During the lifetime of this Agreement,the introduction of performancemanagement systems will be acceleratedat the level of the individual in all areasof the Public Service where they do notcurrently exist.Where necessary, existing arrangementswill be revised to ensure:- Managers are held to account formanaging the performance anddevelopment of their staff. This mustbe a key goal for all managers andtaken account of in their ownperformance reviews.- Procedures to deal withunderperformance will bestreamlined to be more effective.- The performance of individual publicservants is managed and assessedagainst agreed objectives.• Performance improvement action planswill be developed for individualsidentified as having performance issuesclearly setting out the performanceissues that need to be addressed over adefined timeframe. There will be activemanagement of the performanceimprovement action plans. In instanceswhere performance has not beensatisfactorily addressed within thetimeframe set down, procedures to dealwith underperformance will be invoked.• Where performance does not improve toa satisfactory level within an agreedtimeframe, disciplinary procedures mayapply.• The performance of senior managers iscritical to supporting the effectivedelivery of quality public services andnever more so than in a climate ofsignificantly reduced resources.Measures will be introduced to furtherdevelop and enhance a culture ofperformance across the managementcohort of the Public Service. Thesemeasures will include the introduction ofmanagement performance agreements.Work-sharing3.15 It is acknowledged that flexibility inattendance arrangements can, where theycan be accommodated, contribute toefficient and effective businessperformance while enabling staff to balancework and personal life requirements.Accordingly the Public Service has been tothe fore in pioneering flexible attendancepatterns. Nevertheless, the multitude andvariety of work sharing patterns in place, insome sectors, has created a significantmanagement challenge and overhead and isimpacting on the capacity of organisationsto deliver their services. Therefore, in orderto support the effective management ofincreasingly scarce staff resources into thefuture and the protection of services to thepublic, the following principles will apply:• The implementation and operation of thework-sharing arrangements is at thediscretion of management, who retainthe discretion to alter, reduce and/orstandardise the range of work sharingpatterns available to staff having regardto the specific business needs of theirorganisation.• No work-sharing pattern approved in thefuture should be less than 50% of fulltime working hours. Staff currently onpatterns of less than 50% can retain thework pattern on a personal to holderbasis.13

HADDINGTON ROAD AGREEMENT 2013 - 201614• In line with previous agreedarrangements, each individual’s worksharingarrangements will be formallyreviewed on an annual basis (or earlier ifrequired). Where such a review has notyet taken place a review must becompleted by the end of 2013.• Management’s discretion to alter or changean individual’s work-sharing arrangements,on the giving of due notice (3 months), isconfirmed. Management reserves the right,on reasonable business grounds and withreasonable notice, to refuse access to thescheme, to require a person to vary theirwork-sharing arrangements, or to require aperson to resume full time work.Flexible Working Arrangements(Flexitime)3.16 The Parties agree that management has theresponsibility and the right to activelymanage flexible working arrangements intheir organisations. This will help to buildon the work done to date in reviewing andrevising work practices to ensure that, in acontext of reduced resources and numbers,as well as additional working hours, thePublic Service will continue to provide therequired level of service to the public and tocontribute to economic recovery.3.17 While the rationale for this flexibility isacknowledged, it is now necessary toupdate the arrangements to better reflect thecurrent needs of organisations, in thecontext of falling numbers in the PublicService, changing demands in terms ofservices to the public and the additionalworking hours under this Agreement. Inthis context, it may be necessary to amendthe core time bands to reflect the extendedhours of working and to meet businessneeds following local consultation. FlexibleWorking Arrangements (FWA) are onlypossible so long as they support andenhance the efficient operation ofDepartments/Offices. In particular, all areasmust always be appropriately staffed duringthe working day, including lunch breaks; allarrangements must ensure that this isconsistently the case.3.18 The current FWA will continue to applysubject to the following amendments:• FWA will continue to be available forstaff up to Higher Executive Officer(HEO) grade and its equivalents in theCivil Service and other sectors, asappropriate.• FWA will not apply to staff at theAssistant Principal Officer (APO) gradeand its equivalents in the Civil Serviceand other sectors, except for those staffwho already have this arrangement.• With effect from 1st July 2014, themaximum amount of flexi leave allowedin any flexi period is one day.• No change is proposed to the existingterms of the Flexitime Agreements withregard to the amount or the use of hoursto be carried over.Outsourcing3.19 The Parties reaffirm that the principles andprocedures set out in the Appendix: ServiceDelivery Options to the Public ServiceAgreement 2010-2014 will continue toapply, and in that context the relevant TradeUnions will be consulted on all aspects ofthe public procurement process, includingthe tendering process, at key stages beforedecisions are made, consistent with therequirements ofEU and national procurement law andcommercial sensitivity. The Parties alsonote in this regard the mechanismestablished under paragraph 13 of theAgreement.3.20 Management will put in place engagementbetween the Union Side and the NationalProcurement Office to review mechanismsin place to ensure compliance with theterms of the Agreement and to achieve ajoint understanding on arrangements todeliver on the commitments of the Parties.The Official Side also agree to ongoingengagement over the lifetime of theAgreement.3.21 The Chairman of the Construction NationalJoint Industrial Council and the Chairmanof the Electrical Industry National JointIndustrial Council will convene anengagement between the two Councils andthe relevant senior officials on the officialcontract management side to engage inrelation to the effective compliance inpublic contracts with the terms ofemployment law, including with the termsof relevant Registered Employment

HADDINGTON ROAD AGREEMENT 2013 - 2016Agreements (REAs). This engagement willtake place within 6 weeks of the adoptionof this Agreement.3.22 Should it be required, the Parties commit toa joint review of the operation of theAppendix, under the auspices of the LabourRelations Commission. That review will becompleted within a period of 3 months ofits initiation. The Commission undertakesto make proposals to support the operationof the Appendix, should the Parties’ jointreview not have found consensus on thematter.4 EXIT MECHANISMS4.1 To facilitate the necessary reduction innumbers of public servants, the moratoriumon recruitment to and promotion in thePublic Service and other employmentnumbers control mechanisms will continueto apply until numbers in each sector havefallen to the appropriate level specified inthe Employment Control Framework (ECF)for that sector. In addition, where thecircumstances require it, the Governmentmay offer voluntary mechanisms to exit thePublic Service, whether generally or inspecific sectors, bodies, locations orservices.4.2 The Government reaffirms the commitmentgiven under Paragraph 1.6 of the PublicService Agreement that compulsoryredundancy will not apply within the PublicService. However, this commitment issubject to the following exceptions:• Where existing exit mechanisms haveapplied, such arrangements willcontinue.• The commitment on compulsoryredundancy continues to be subject to theagreed flexibility on redeployment beingdelivered. Where redeployment is not anoption and taking account of the businessneeds of the organisation there may becircumstances where voluntary departurewould be appropriate. In such situationsthere will be discussions with therelevant unions on the terms of anyarrangement (which will be in line withany centrally agreed arrangements).• Agreed procedures for managinginstances of consistent performanceissues will be actively pursued.4.3 Where voluntary redundancy is offered inthe Public Service, the terms of thecollective agreement reached between theGovernment and the Public ServicesCommittee of ICTU on redundancypayments to public servants will apply.5 IMPLEMENTATIONDispute resolution5.1 The Parties reaffirm their commitmentsunder paragraphs 1.23 to paragraphs 1.27 inthe Public Service Agreement, in particularthe commitments given to resolvingindustrial relations disagreements withinthe Public Service promptly, using allavailable dispute resolution mechanisms(both statutory and non-statutory) with theoutcome of the process final and binding onall Parties.5.2 The Parties note that the legislativeconstraints imposed on the employer in thecontext of the financial emergency willcontinue to be the context for any claimsmade for improvement in pay or conditionsof employment, and reaffirm thecommitments given under paragraph 1.27in that regard.Anomalies5.3 The Parties recognise that the complexity ofthe measures contained in this Agreementis such that unforeseen anomalies can arise.The Parties undertake to interpret thisAgreement in good faith and to approachthe resolution of any such anomalies in apositive fashion commensurate with thecommitments contained within theAgreement. In the event that any anomalycannot be resolved by agreement, thebinding dispute resolution mechanismsprovided for under this Agreement shouldbe utilised.Oversight and governance arrangements5.4 Implementation Body: A groupcomprising representatives of PublicService Management and the PublicServices Committee of the ICTU will meetas required to address any matters ofimplementation and interpretation that mayarise under this Agreement.15

HADDINGTON ROAD AGREEMENT 2013 - 201616APPENDIX: COLLECTIVEAGREEMENTS IN THEEDUCATION SECTOR(1) COLLECTIVE AGREEMENTFOR TEACHERS (PRIMARY/POST-PRIMARY)SUPERVISION AND SUBSTITUTIONSCHEME The existing S&S scheme willbe amended as follows:• With effect from the commencement ofthe school year 2013/14, the timecurrently assigned to supervision andsubstitution will be increased from oneand a half hours in any given week tothree hours. In this context, theadditional time may only be used forsubstitution.• The requirement that a teacher beavailable for three timetabled classperiods per week will be increased tofive class periods per week.• Participation in the scheme will becompulsory for all teachers and theposition in relation to the allowance isset out below.• The requirement to provide 37 hours perannum will be increased to 43 witheffect from the commencement of the2013/14 school year.Hours provided under the revised S&Sscheme will, in addition to usage under theexisting scheme, be used as follows:• With effect from commencement of2013/14 school year – to cover alluncertified sick leave absences, subjectto appropriate alleviation measures inrelation to multiple absences particularlyin small schools.• With effect from commencement of2014/15 school year – to cover the firstday of force majeure leave and illness infamily leave.The payments under the Scheme shall bediscontinued with effect from thecommencement of the 2013/14 school year.As the above annualised payments are inthe nature of a pensionable allowance (andare not amenable to current “buy-out”arrangements), the following arrangementsshall apply:• A gross additional payment equivalent tothe 2011 lower payment rate paid forsupervision and substitution will beincluded in the common basic scale forteachers. This will be included in twomoieties with half included in the schoolyear 2016/17 and the second halfincluded in the school year 2017/18.Such payments to be considered in anyfuture pay negotiation arrangements inrespect of teachers. The duties continue tobe performed indefinitely.POSTS OF RESPONSIBILITY INSCHOOLSIn the context of the ongoing moratorium on fillingposts of responsibility in schools, the alleviationarrangements which previously applied will beoperated on an annual basis for the duration of thisAgreement.FIXED –TERM/ PART-TIMEEMPLOYMENT IN TEACHINGAn Expert Group will be established to considerand report on the level of fixed-term and part-timeemployment in teaching, having regard to theimportance for teachers of employment stabilityand security and taking account of system andschool needs and Teaching Council registrationrequirements.This group will as a first task report on reducingthe qualification period for the granting of acontract of indefinite duration (CID) from 4 yearsto 3 years to take effect for the 2014/15 schoolyear. Arrangements will be made in relation tothose entering their fourth year in September 2013with a view to the early application to them of thisprovision.SUPPLEMENTARY PANELARRANGEMENTS FORREDEPLOYMENT OF POST-PRIMARY TEACHERSIn the context of the implementation of theAgreement, a supplementary panel will beestablished for teachers who have had sustainedperiods of employment with more than oneschool/VEC over an extended period of time.Inclusion on this panel will attract no remunerationentitlements. The general principles to underpin

HADDINGTON ROAD AGREEMENT 2013 - 2016this new scheme will include the designation of certain permanent vacancies to be filled from this panelhaving taken account of, inter alia, those permanent vacancies requiring to be filled by pre-existing panelarrangements, the awarding of CIDs, and the allocation of additional hours to existing CID holders. On thecommencement of this Agreement, discussions will be held between the parties in relation to the detailedimplementation of these arrangements, with a view to their introduction for the school year 2014/15.Provision will also be made for a review of these arrangements following their operation for a period to beagreed between the Parties.NEW ENTRANT SALARY SCALESIn order to address the imbalance between those who entered the Public Service since 2011 and those whoentered before that date, revised incremental salary scales shall be prepared for same grade entrants to eachpublic service sector as necessary to incorporate the revision of salary scales introduced by GovernmentDecision in January 2011.The proposed revised scales for teachers are:Point 1/1/2011* 1/1/2011* 1/2/2012 1/2/2012Existing Scale Proposed Existing Scale ProposedRevised scaleRevised scale1 27,814 27,814 30,702 30,7022 28,775 28,775 32,198 33,1683 29,737 30,702 33,168 33,9504 30,702 31,924 34,136 36,5765 32,198 33,168 36,576 37,7956 33,168 34,136 37,795 39,2517 34,136 36,576 39,251 40,7008 36,576 37,795 40,700 42,1609 37,795 39,251 42,160 43,38010 39,251 40,700 43,380 44,99611 40,700 42,160 44,996 44,99612 42,160 43,380 44,996 44,99613 43,380 44,996 44,996 47,22514 44,996 44,996 47,225 47,22515 44,996 44,996 47,225 47,22516 44,996 47,225 47,225 47,22517 47,225 47,225 47,225 50,17018 47,225 47,225 50,170 50,17019 47,225 47,225 50,170 50,17020 47,225 50,170 50,170 50,17021 50,170 50,170 50,170 53,42322 50,170 50,170 53,423 53,42323 50,170 53,423 53,42324 50,170 54,339 58,76525 53,423 55,514 59,940* Qualification allowances would continue to be paid to this cohort of teachers as appropriate.17

HADDINGTON ROAD AGREEMENT 2013 - 201618(2) COLLECTIVE AGREEMENT FORACADEMIC STAFF ININSTITUTES OF TECHNOLOGYHIGHER REMUNERATION ANDINCREMENTSThe revised arrangements shall apply.FIXED –TERM/ PART-TIME EMPLOYMENTIN LECTURINGAn Expert Group will be established to considerand report on the level of fixed-term and part-timeemployment in lecturing, having regard to theimportance for lecturers of employment stabilityand security and taking account of system andInstitute needs.This group will as a first task report on reducingthe qualification period for the granting of a CIDfrom 4 years to 3 years to take effect for the2014/15 academic year. Arrangements will bemade in relation to those entering their fourth yearin September 2013 with a view to the earlyapplication to them of this provision.HOURLY PAID ASSISTANT/ ASSOCIATELECTURERSThe Parties will put in place a process for thephased conversion of Hourly PaidAssistant/Associate Lecturers to pro-rata AssistantLecturers. This process will in the first instanceestablish and agree those posts which areappropriate to be converted and thereafter, suchposts will be converted over a period of 3 yearscommencing in or before the academic year2014/15. A person converted will be assimilated tothe Assistant Lecturer payscale on the point nearestto and not below his/her current rate from the dateof conversion.In the context of the above process the provisionsof Circular 93/2007 will apply to Hourly PaidAssistant/ Associate Lecturers.ACADEMIC STAFF – ADDITIONAL HOURSAcademic staff will work an additional 78 hoursper annum. This will be applied towards eveningweighting (which will be reduced from 1.5 to 1.25)and church holidays.EXAM PAYMENTS - ALL ACADEMIC STAFFEffective from 1st July 2013, the examinationmarking fee will be reduced to 75% of currentrates.NEW ENTRANT SALARY SCALESIn order to address the imbalance between thosewho entered the Public Service since 2011 andthose who entered before that date, revisedincremental salary scales shall be prepared forsame grade entrants to each public service sector asnecessary to incorporate the revision of salaryscales introduced by Government Decision inJanuary 2011.(3) COLLECTIVE AGREEMENT FORACADEMIC STAFF INUNIVERSITIES AND OTHERTHIRD LEVEL COLLEGESHIGHER REMUNERATION ANDINCREMENTSThe revised arrangements shall apply.FIXED –TERM/ PART-TIME EMPLOYMENTIN LECTURINGAn Expert Group will be established to considerand report on the level of fixed-term and part-timeemployment in lecturing, having regard to theimportance for lecturers of employment stabilityand security and taking account of system andinstitution needs.This group will as a first task report on reducingthe qualification period for the granting of a CIDfrom 4 years to 3 years to take effect for the2014/15 academic year. Arrangements will bemade in relation to those entering their fourth yearin September 2013 with a view to the earlyapplication to them of this provision.ACADEMIC STAFF – ADDITIONAL HOURSAcademic staff will work an additional 78 hoursper annum. This additional time will be deployedthrough Workload Allocation Models to maximisesavings and productivity.EXAM PAYMENTS - ALL ACADEMIC STAFFEffective from 1st July 2013, the examinationmarking fee will be reduced to 75% of currentrates.NEW ENTRANT SALARY SCALESIn order to address the imbalance between thosewho entered the Public Service since 2011 andthose who entered before that date, revisedincremental salary scales shall be prepared forsame grade entrants to each public service sector asnecessary to incorporate the revision of salaryscales introduced by Government Decision inJanuary 2011.FLEXIBILITY (LIBRARY/ADMINISTRATIVE STAFF)The agreement in relation to flexible workingarrangements will apply to those Librarians andAdministrative Staff who currently have access tothese arrangements.ADULT EDUCATION TUTORSIssues in relation to contracts for Adult EducationTutors have been raised. On the commencement ofthis Agreement, the parties will meet under theauspices of the LRC with the objective ofexamining these issues.

HADDINGTON ROAD AGREEMENT 2013 - 2016SPECIAL NEEDS ASSISTANTSHOURSUnder the terms of the Public Service Agreement2010-2014, discussions took place that led toagreement on changed attendance arrangements forSpecial Needs Assistants (SNAs) that give schoolsthe option of an additional two hours working timeper week from each Special Needs Assistant.Under the terms of this Agreement on increasedworking hours in the Public Service, the availablerequirements in schools for additional hours forSNAs is quite limited. Given issues such as theduration of the school day and operation hours, andthe specific availability of individual SNAs thedetails of the utilisation of any additionalrequirements should be the subject of furtherdiscussions.These new attendance arrangements, allied to theprovisions outlined in the above paragraph shouldbe the subject of a review by the LRC in advanceof the 2013/2014 school year, involving theDepartment of Education and Skills andIMPACT/SIPTU, in order to assess if theadditional hours are being utilised in the mosteffective and appropriate manner and in order toachieve agreement on any changes deemednecessary in terms of the arrangement agreed forteachers.This will constitute the liability on Special NeedsAssistants in respect of working hours for thepurposes of this extension to the Public ServiceAgreement.Labour Court Recommendation 20308SUPPLEMENTARY ASSIGNMENTARRANGEMENTS FOR SNAs• Having regard to the terms of Labour CourtRecommendation 20308, the followingterms shall apply to current SNAs who arenotified that they are to be made redundant.• The purpose of this scheme is to absorbsurplus SNAs by means of reassignmentwithin the School/VEC in the first instance,then to facilitate surplus SNAs in fillingsimilar alternative posts that may becomeavailable in other schools/VECs.• An SNA who is notified that they are to bemade redundant shall be placed on asupplementary assignment panel. Likewisean SNA who remains on the panel for a fullschool year without being placed inemployment should have the option ofclaiming a redundancy payment in line withthe present arrangement.• SNAs on the supplementary assignmentpanel will not be remunerated after the dateon which they become surplus.• Where a vacancy arises or where a newpost is created it will first be offered tothose on the panel in order of seniority,subject to suitability.• The appropriate redeployment distance inthe Education sector will apply toreassignments made under thesearrangements. The Parties shall engage onthe application of these arrangements.• SNAs assigned under these arrangementswill carry forward their prior service, andthis service will be reckonable in their newemployment for seniority-based selectionfor surplus declaration and for the purposesof calculating redundancy payments.• A Supplementary Assignment Managerwill be appointed to overseeimplementation of the arrangements.• Any permanent vacancies must be notifiedby the schools to the SupplementaryAssignment Manager before they can befilled.• As an alternative to being reassigned underthese arrangements, an SNA who isdisplaced or who is unable to accept theoffer of an alternative placement may opt tobe made redundant in line with prevailingredundancy arrangements.• In the context of these arrangements beingput in place, the redundancy scheme forSNAs set out in CL 58/2006 shall apply.19

Financial Emergency Measuresin the Public Interest (FEMPI) Act201321

FEMPI EXPLANATORY MEMORANDUM————————AN BILLE UM BEARTA AIRGEADAIS ÉIGEANDÁLA ARMHAITHE LE LEAS AN PHOBAIL, 2013FINANCIAL EMERGENCY MEASURES IN THE PUBLICINTEREST BILL 20131. Purpose of the Bill————————EXPLANATORY MEMORANDUM————————1.1 The primary purpose of this Bill is to:22•reducetheremunerationofcertainpublicservantsonhigherrates of pay in excess of €65,000,•provideforthereductionoftheamountofthepaymentofpension or other benefits (other than lump sums) payable toor in respect of certain persons who are or were in the publicservice under an occupational pension scheme or pensionarrangement, and•provideforasuspensionofincrementalprogressionforthreeyears for all public servants unless they are covered by acollective agreement that modifies the terms of theincremental suspension and which has been registered withthe Labour Relations Commission.1.2 The Bill includes:•clarification that the existing powers of Ministers of theGovernment or other bodies that may set terms andconditions of employment of public servants may be exercisedso as to reduce the remuneration or increase the working timeof those public servants,•amodificationofthepensionrelateddeductionthatappliesto serving public servants, that will reduce the pensiondeduction on all public servants by €125 a year, to commencefrom 1 January 2014, and•relatedorconsequentialprovisionstotheabove,includingaprovision providing for a consolidation of the existingseparate annual reporting requirements under the FinancialEmergency legislation into a single report to the Oireachtasby 30 June of each year.1.3 The Bill is being introduced as a financial emergency measure inthe public interest in the context of the continued priority been givento the stabilisation of the public finances including the need to1

FEMPI EXPLANATORY MEMORANDUMachieve savings of €1 billioninthepublicservicepayandpensionsbill by 2015.2. Provisions of the Bill2.1 Section 1 is a standard provision in legislation and sets out thenecessary interpretive provisions to provide clarity in theunderstanding of and application of the terms of the Bill. Certainpublic servants who were not affected by the pay reductions imposedby the Financial Emergency Measures in the Public Interest (No. 2)Act 2009 will be affected by the measures in this Bill, includingmembers of the judiciary and, under section 10, employees of theNational Treasury Management Agency and the RailwayProcurement Agency. The section also defines an incremental scale.2.2 Section 2 amends the Financial Emergency Measures in thePublic Interest (No. 2) Act 2009 by inserting a new section 2A whichprovides for a further pay reduction to apply to public servantswhose remuneration (which is defined as including core pay and anyfixed periodic pensionable allowances) is greater than €65,000 witheffect from 1 July 2013 in accordance with the rates in the tablebelow:Annualised amount of RemunerationReductionAny amount up to €80,000 5.5%Any amount over €80,000 but not over 8%€150,00023Any amount over €150,000 but not 9%over €185,000Any amount over €185,000 10%2.2.1 Public servants affected will include members of theGovernment and the Oireachtas (other than the President), and thejudiciary.2.2.2 A saver provision is provided for persons who are in receiptof salaries and allowances marginally in excess of the proposed€65,000 threshold being reduced below €65,000 per annum byapplication of the reductions.2.2.3 A new section 2B is inserted in to the Financial EmergencyMeasures in the Public Interest (No. 2) Act 2009. This provides thatan existing power to fix terms and conditions may be exercised bythe relevant employer or Minister of the Government so as to resultin less favourable remuneration, other than core salary, or inincreased hours for the public servants concerned, notwithstandingany of the terms of any enactment, contract or otherwise providedfor. This provision will not apply to any group of public servantsfor whom remuneration is set by primary legislation, for example,the judiciary.2.2.4 Both of the two new sections, section 2A and 2B, providethat the reduction in pay or the power to adjust terms and conditionsapply notwithstanding any legislation, contract, or other agreementor measure to the contrary.2.3 Section 3 provides for the application of all existing additionalsections of the Financial Emergency Measures in the Public Interest2

FEMPI EXPLANATORY MEMORANDUM(No. 2) Act 2009, including the prohibition on pay increases and theability of the Minister to modify the pay reduction as it applies tocertain persons or groups on limited grounds.2.4 Section 4 is a technical amendment which ensures that thedefinition of pensioner in the Financial Emergency Measures in thePublic Interest (No. 2) Act 2009 is appropriately adjusted toencompass pensioners covered by the changes in the Bill.2.5 Section 5 provides for amendments to be made to the FinancialEmergency Measures in the Public Interest Act 2010 to increase andextend the impact of the Public Service Pension Reduction (PSPR).2.5.1 The reduction that applies to public service pensions inpayment, for persons who retired up to 29 February 2012 and onpensions of greater than €32,500 will be increased as follows:24Annualised amount of public servicepensionUp to €12,000Any amount over €12,000 but not over€24,000Any amount over €24,000 but not over€60,000Any amount over €60,000 but not over€100,000Any amount over €100,000ReductionExempt8 per cent12 per cent17 per cent28 per cent2.5.2 A reduction to public service pensions in payment of greaterthan €32,500, for those who retired after 29 February 2012 but beforethe end of a new grace period (and whose pensions therefore reflectpay rates which factor in the 2010 pay reductions) to be appliedunder this Bill will be as follows:Annualised amount of public servicepensionUp to €12,000Any amount over €12,000 but not over€24,000Any amount over €24,000 but not over€60,000Any amount over €60,000 but not over€100,000Any amount over €100,000ReductionExempt2 per cent3 per cent5 per cent8 per cent2.5.3 The section provides that no public service pension will bereduced to below €32,500 by virtue of these amendments.2.6 Section 6 consists of consequential amendments to the FinancialEmergency Measures in the Public Interest Act 2010; these ensurethat relevant elements of that Act, including in respect of aggregation3

FEMPI EXPLANATORY MEMORANDUMof pensions and calculation of pension, are adjusted for purposes ofthe Bill.2.7 Section 7 provides for a freeze of incremental progression bypublic servants on incremental pay scales for a period of 3 years,commencing on 1 July 2013. Groups or grades of public servantsmay be excluded from the effect of this provision, or have its effectsmodified on the basis that a collective agreement, which has beenregistered with the Labour Relations Commission, has been reached.2.8 Section 8 provides a power for the Minister to exempt individualpublic servants or groups from the increment freeze on limited andexceptional grounds.2.9 Section 9 provides that persons retiring before 31 August 2014,or a later date that may be ordered by the Minister, will be entitledto have their pensions calculated as if the pay reduction and anyincrement pause or freeze had not applied to them.2.10 Section 10 amends the Financial Emergency Measures in thePublic Interest (No. 2) Act 2009 to provide that the employees ofthe Railway Procurement Agency and the National TreasuryManagement Agency that were not affected by the pay reductionimposed effective from 1 January 2010 will be affected by themeasures proposed in this Bill.2.11 Section 11 amends the Financial Emergency Measures in thePublic Interest Act 2009 to provide for a modification of the pensionrelated deduction that applies to serving public servants, that willreduce the pension deduction on all public servants by €125 a year,to commence from 1 January 2014.252.12 Section 12 provides for annual review and report to theOireachtas of the necessity of the measures set out in the Bill. ThisReview will now encompass the reviews currently necessary underthe earlier Financial Emergency Measures in the Public InterestActs.2.13 Section 13 states the Short title of the Act.Department of Public Expenditure and Reform,Bealtaine, 2013.Wt.—. 622.5/13.Clondalkin.(37258).Gr.30-15.4

FINANCIAL EMERGENCY IN THE PUBLIC INTEREST ACT 2013————————Number 18 of 2013————————FINANCIAL EMERGENCY MEASURES IN THE PUBLICINTEREST ACT 2013————————Section1. Interpretation.ARRANGEMENT OF SECTIONS2. Reduction in remuneration of public servants who earn morethan €65,000.3. Consequential amendments of Act of 2009.264. Amendment of definition of “pensioner” in Act of 2010.5. Reduction in certain public service pensions.6. Consequential amendments of Act of 2010.7. Pay scales: suspension, subject to exceptions, for certainperiod.8. Exemption, etc., from operation of section 7 in certaincircumstances.9. Certain pension rights not affected.10. Amendment of Schedule to Act of 2009.11. Amendment of Financial Emergency Measures in the PublicInterest Act 2009.12. Review of this Act and certain enactments of like character.13. Short title.————————1

FINANCIAL EMERGENCY IN THE PUBLIC INTEREST ACT 2013[No. 18.] Financial Emergency Measures in the [2013.]Public Interest Act 2013.Acts Referred toCivil Partnership and Certain Rights and Obligations ofCohabitants Act 2010 2010, No. 24Financial Emergency Measures in the Public Interest Act2009 2009, No. 5Financial Emergency Measures in the Public Interest (No.2) Act 2009 2009, No. 41Financial Emergency Measures in the Public Interest Act2010 2010, No. 38Financial Emergency Measures in the Public Interest(Amendment) Act 2011 2011, No. 39Organisation of Working Time Act 1997 1997, No. 20Public Service Pensions (Single Scheme and OtherProvisions) Act 2012 2012, No. 37Public Service Superannuation (Miscellaneous Provisions)Act 2004 2004, No. 727

FINANCIAL EMERGENCY IN THE PUBLIC INTEREST ACT 2013————————Number 18 of 2013————————FINANCIAL EMERGENCY MEASURES IN THE PUBLICINTEREST ACT 2013————————AN ACT, IN THE PUBLIC INTEREST, TO PROVIDE FOR—(A) THE REDUCTION OF THE REMUNERATION OFCERTAIN PUBLIC SERVANTS (INCLUDINGMEMBERS OF THE HOUSES OF THEOIREACHTAS, THE JUDICIARY AND CERTAINOFFICE HOLDERS);28(B) THE REDUCTION OF THE AMOUNT OF THE PAY-MENT OF PENSION OR OTHER BENEFITS(OTHER THAN LUMP SUMS) PAYABLE TO OR INRESPECT OF CERTAIN PERSONS WHO ARE ORWERE IN THE PUBLIC SERVICE (INCLUDINGMEMBERS AND FORMER MEMBERS OF THEHOUSES OF THE OIREACHTAS, FORMERMEMBERS OF THE JUDICIARY AND FORMERHOLDERS OF CERTAIN OFFICES) UNDER ANOCCUPATIONAL PENSION SCHEME OR PEN-SION ARRANGEMENT (BY WHATEVER NAMECALLED); AND(C) THE ALTERATION OF THE OPERATION OFSCALES OF PAY FOR PUBLIC SERVANTS(INCLUDING THE SUSPENSION OF THE AWARD-ING, FOR A CERTAIN PERIOD, OF INCREMENTSUNDER THOSE SCALES),AND TO PROVIDE FOR RELATED MATTERS.[5th June, 2013]WHEREAS budgetary and fiscal measures have been taken bythe State since 2009 to address a serious disturbance in the economyand a decline in the economic circumstances of the State that haveoccurred;AND WHEREAS it is necessary for the State to achieve furthersignificant savings in its expenditure, both directly and indirectly, onremuneration and in its expenditure on public service pensions as acontribution to the reduction of the shortfall between revenue andexpenditure that is needed to put debt on a downward path;3

FINANCIAL EMERGENCY IN THE PUBLIC INTEREST ACT 2013[No. 18.] Financial Emergency Measures in the [2013.]Public Interest Act 2013.AND WHEREAS the State is availing itself of a financial assistanceprogramme established by the European Union and the InternationalMonetary Fund with funding provided by the European FinancialStabilisation Mechanism, the European Financial StabilityFacility, the bilateral lenders (the United Kingdom, the Kingdom ofSweden and the Kingdom of Denmark) and the International MonetaryFund and it is necessary to adopt a range of measures to meetcommitments included in that programme to address the economiccrisis in the State;AND WHEREAS it is necessary for the State to take measuresas part of remedial action to maintain the State’s pathtowardcorrectingthe excessive deficit by 2015 in line with the recommendationto that effect of the Council of the European Union (Council Recommendationwith a view to bringing to an end the situation of anexcessive deficit in Ireland of 7 December 2010);BE IT THEREFORE ENACTED BY THE OIREACHTAS ASFOLLOWS:Interpretation.1.—(1) In this Act—“Act of 2009” means the Financial Emergency Measures in thePublic Interest (No. 2) Act 2009;“Act of 2010” means the Financial Emergency Measures in thePublic Interest Act 2010;29“Act of 2011” means the Financial Emergency Measures in thePublic Interest (Amendment) Act 2011;“Act of 2012” means the Public Service Pensions (Single Scheme andOther Provisions) Act 2012;“Minister” means the Minister for Public Expenditure and Reform.(2) References in this Act—(a) to an increment that may be awarded to a public servantare references to an increment, provided for in the applicablepay scale, that may be awarded to the public servantsubject to there being satisfied the one or more conditionsthat are required by the pay scale, or a writtenstatement governing its operation, to be satisfied beforean award of such an increment may be made, and(b) to a point on a pay scale shall be read accordingly.Reduction inremuneration ofpublic servants whoearn more than€65,000.2.—The Act of 2009 is amended by inserting the following sectionsafter section 2:“Publicservants’remuneration:reduction, witheffect from 1July 2013, forcertain publicservants.2A.—(1) In this section—(a) a reference to a relevant provision shall,other than in the case of a public servantto whom section 10(2) of the FinancialEmergency Measures in thePublic Interest Act 2013 relates, beread as a reference to that provision asit has effect, subject to any direction4

FINANCIAL EMERGENCY IN THE PUBLIC INTEREST ACT 2013[2013.] Financial Emergency Measures in the [No. 18.]Public Interest Act 2013.S.2given under section 6, by virtue of theoperation of section 2;(b) a reference to the annual remunerationof apublicservantisareferencetothepublic servant’s annual basic salary,together with any fixed, periodic allowancethat is—(i) reckonable for the purposes of calculatinga pension entitlement ofthe public servant, and(ii) paid to the public servant as part ofhis or her annual remuneration,and, for the purposes of this section, the definitionof ‘public servant’ in section 1 shall apply as if inparagraph (e) ofthatdefinitionthewords‘whowas appointed to judicial office before the commencementof section 10 of the FinancialEmergency Measures in the Public Interest(Amendment) Act 2011’ were omitted.30(2) A relevant provision that fixes the remuneration,or any part of the remuneration, of a publicservant whose annual remuneration exceeds€65,000 shall be taken to have been amended, witheffect on and from 1 July 2013, in accordance withthis section.(3) Where the remuneration of a public servantis fixed by a relevant provision, then the relevantprovision shall be taken to have been amended sothat the remuneration is reduced in accordancewith the Table to this section.(4) Where the application to a public servant ofsubsections (2) and (3) and the Table to thissection would result in his or her annual remunerationbeing reduced to less than €65,000, thenthose subsections and that Table shall onlyoperate to reduce his or her annual remunerationto €65,000.(5) Where a public servant is entitled as part ofhis or her annual remuneration to the payment ofan allowance and the allowance—(a) is not reimbursement of any expenseactually incurred, and(b) is expressed as a specified percentage orspecified proportion of another part ofthe remuneration (referred to in thissubsection as ‘basic salary’) ofapublicservant to whom the relevant provisionapplies,then the public servant’s basicsalary,forthepurposesof calculating the amount payable as theallowance, is his or her basic salary reduced in5

FINANCIAL EMERGENCY IN THE PUBLIC INTEREST ACT 2013S.2[No. 18.] Financial Emergency Measures in the [2013.]Public Interest Act 2013.accordance with subsections (2) and (3) and theTable to this section.(6) This section has effect notwithstanding—(a) any provision by or under—(i) any other Act,(ii) any statute or other document tolike effect of a university or otherthird level institution,(iii) any circular or instrument or otherdocument,(iv) any written agreement or contractualarrangement,or(b) any verbal agreement, arrangement orunderstanding or any expectation.TableReduction in Remuneration of Public ServantsEarning More Than €65,00031Annualised amount ofRemunerationUp to €80,000Any amount over €80,000 butnot over €150,000Any amount over €150,000 butnot over €185,000Any amount over €185,000Reduction5.5 per cent8 per cent9 per cent10 per centAlteration ofremuneration(other thanbasic salary) orworking timeof publicservants.2B.—(1) In this section—‘Act of 1997’ means the Organisation of WorkingTime Act 1997;‘remuneration’ does not include basic salary;‘working time’ has the meaning it has in the Actof 1997.(2) A power conferred by or under any enactmentto fix the terms and conditions of personswho are public servants may, notwithstanding anything referred to in subsection (3), be exercisedso as—(a) to result in less favourable remunerationfor those persons, in respect ofthe employment, office or positionheld by them in the public service bodyconcerned, than that enjoyed by themimmediately before the exercise of thepower, or6

FINANCIAL EMERGENCY IN THE PUBLIC INTEREST ACT 2013[2013.] Financial Emergency Measures in the [No. 18.]Public Interest Act 2013.S.2(b) to provide that the working time,whether by reference to a day, a weekor a month, of those persons in theemployment, office or position held bythem in the public service body concernedshall, to a specified extent, begreater (but not greater than thatwhich is permitted by the Act of 1997)than that which stood provided,immediately before the exercise of thepower, to be their working time in thatemployment, office or position.(3) The things referred to in subsection (2)are—(a) any provision by or under—(i) any other Act,(ii) any statute or other document tolike effect of a university or otherthird level institution,32(iii) any circular or instrument or otherdocument,(iv) any written agreement or contractualarrangement,or(b) any verbal agreement, arrangement orunderstanding or any expectation.”.3.—(1) The definition of “public servant” in section 1 of the Actof 2009 is amended by inserting “, subjecttosection2A(insertedbythe Financial Emergency Measures in the Public Interest Act 2013),”before “means a person”.(2) Section 4(1) of the Act of 2009 is amended by inserting “or2A” after “section 2”.(3) Section 5 of the Act of 2009 is amended—(a) in subsection (1) by inserting “or 2A” after “section 2”,and(b) in subsection (2) by inserting “or 2A” after “section 2”.(4) Section 6 of the Act of 2009 is amended by inserting “or 2A”after “section 2” in both places where it occurs.Consequentialamendments of Actof 2009.4.—The definition of “pensioner” in section 1 of the Act of 2010is amended by inserting “, subjecttosection2A(insertedbytheFinancial Emergency Measures in the Public Interest Act 2013),”before “means a person”.Amendment ofdefinition of“pensioner” in Actof 2010.7

FINANCIAL EMERGENCY IN THE PUBLIC INTEREST ACT 2013[No. 18.] Financial Emergency Measures in the [2013.]Public Interest Act 2013.Reduction incertain publicservice pensions.5.—(1) In this section “public service pension” has the meaning ithas in the Act of 2010.(2) In subsection (3) “relevant pensioner” means a pensioner(within the meaning of the Act of 2010), the annual public servicepension of whom exceeds €32,500, and this reference to the pensioner’sannualpublicservicepensionisareferencetohisorherannual public service pension as it stands reduced by virtue of theoperation of the Act of 2010 before the passing of this Act.(3) With effect on and from 1 July 2013, subsection (1) of section2oftheActof2010isamended,inrelationtoarelevantpensioner,by substituting the following Table for the Table in that subsection:“TABLEAnnual Pensions that Exceed €32,500Annualised amount of publicservice pensionUp to €12,000Any amount over €12,000 butnot over €24,000Any amount over €24,000 butnot over €60,000Any amount over €60,000 butnot over €100,000Any amount over €100,000ReductionExempt8 per cent12 per cent17 per cent28 per cent33(4) Where the application to a pensioner of the amendmenteffected by subsection (3) would result in the annualised amount ofhis or her public service pension being reduced to less than €32,500,then the amendment effected by that subsection shall only operateto reduce the annualised amount of his or her public service pensionto €32,500.(5) The Act of 2010 is amended by inserting the following sectionafter section 2:”.“Personsbecomingpensionersafter 29February 2012:reduction inpublic servicepension.2A.—(1) For the purposes of this section—(a) the definition of ‘pensioner’ in section 1shall apply with the modification thatreferences to the relevant date in paragraphs(b) and (c) of the definitionshall be read as references to 31August 2014 or such other date as maybe specified in accordance with section9(1)(b)(ii) of the Financial EmergencyMeasures in the Public Interest Act2013;(b) ‘relevant (post 29 February 2012) pensioner’means, subject to subsection(2), a person who became a pensionerafter 29 February 2012, or becomessuch after the passing of the FinancialEmergency Measures in the Public8

FINANCIAL EMERGENCY IN THE PUBLIC INTEREST ACT 2013[2013.] Financial Emergency Measures in the [No. 18.]Public Interest Act 2013.S.5Interest Act 2013, butnolaterthan31August 2014 or such other date as maybe specified in accordance with section9(1)(b)(ii) of the Financial EmergencyMeasures in the Public Interest Act2013 and the annual pension of whom(in either case) exceeds €32,500.(2) In subsection (1)(b) thewords‘but no laterthan 31 August 2014 or such other date as may bespecified in accordance with section 9(1)(b)(ii) ofthe Financial Emergency Measures in the PublicInterest Act 2013’ shall be disregarded in the caseof a pensioner falling under paragraph (c) ofthedefinition in section 1 of ‘pensioner’,asthatdefinitionapplies by virtue of subsection (1)(a).(3) With effect on and from 1 July 2013, theannualised amount of a public service pensionpayable in accordance with his or her entitlementto a person who is a relevant (post 29 February2012) pensioner shall be reduced in accordancewith the Table in this subsection.34TableAnnual Pensions of Relevant (Post 29 February2012) PensionersAnnualised amount of publicservice pensionUp to €12,000Any amount over €12,000 butnot over €24,000Any amount over €24,000 butnot over €60,000Any amount over €60,000 butnot over €100,000Any amount over €100,000ReductionExempt2 per cent3 per cent5 per cent8 per cent(4) Where the application to a pensioner ofsubsection (3) and the Table in that subsectionwould result in the annualised amount of his orher public service pension being reduced to lessthan €32,500, then that subsection and Table shallonly operate to reduce the annualised amount ofhis or her public service pension to €32,500.(5) If two or more public service pensions, theannual amount of which, taken together, exceeds€32,500, are payable to a pensioner, all such pensionsshall be aggregated for the purposes ofapplying subsection (3) in relation to thepensioner.(6) Where a pension adjustment order has beenmade in relation to a public service pension, theannualised amount of the public service pensionshall be reduced under this section before it is paid9

FINANCIAL EMERGENCY IN THE PUBLIC INTEREST ACT 2013S.5[No. 18.] Financial Emergency Measures in the [2013.]Public Interest Act 2013.in accordance with the provisions of the pensionadjustment.(7) This section has effect notwithstanding—(a) any provision by or under—(i) any other enactment,(ii) any statute or other document tolike effect of a university or otherthird level institution,(iii) any pension scheme or arrangement,(iv) any circular or instrument or otherdocument,(v) any written agreement or contractualarrangement,or(b) any verbal agreement, arrangement orunderstanding or any expectation.”.Consequentialamendments of Actof 2010.6.—(1) The definition of “aggregation of public service pensions”(inserted by the Act of 2012) in section 1 of the Act of 2010 isamended by inserting “or subsection (5) of section 2A” after “subsection(1A) of section 2” and substituting “subsection (1) of section2orsubsection(3)ofsection2A,asthecasemaybe,” for “subsection(1) of that section”.35(2) Section 2 of the Act of 2010 is amended by substituting thefollowing subsection for subsection (1A):“(1A) If two or more public service pensions, the annualamount of which, taken together, exceeds €32,500, are payableto a pensioner, all such pensions shall be aggregated for thepurposes of applying subsection (1) in relation to thepensioner.”.(3) The following section is substituted for section 3 of the Actof 2010:“3.—Nothing in section 2 or 2A shall affect the calculation ofany public service pension entitlement (including an entitlementto a lump sum and an entitlement to periodic payments of pensionor other benefits) of a person who—(a) in the case of section 2, is a pensioner or becomes apensioner on or at any time before the relevant dateor, in the case of a pensioner falling under paragraph(c) ofthedefinitionof“pensioner” in section 1, atany time after that date; and(b) in the case of section 2A, falls within the definitionof ‘relevant (post 29 February 2012) pensioner’ inthat section.”.(4) The following sections of the Act of 2010:(a) section 4 (as amended by the Act of 2012);10

FINANCIAL EMERGENCY IN THE PUBLIC INTEREST ACT 2013[2013.] Financial Emergency Measures in the [No. 18.]Public Interest Act 2013.S.6(b) section 5 (as amended by the Act of 2012);(c) section 6;(d) section 11; and(e) section 12 (as amended by the Act of 2012),are amended by inserting “or 2A” after “section 2” in each placewhere it occurs.7.—(1) Subject to the provisions of this section and section 8, forthe period of 3 years beginning on 1 July 2013—(a) no increment shall be awarded to a public servant; and(b) the operation of the pay scale that applies in respect of apublic servant shall stand suspended,and with the effect that—Pay scales:suspension, subjectto exceptions, forcertain period.36(i) the point on that pay scale that shall be applicable inrespect of a public servant on 1 July 2016 shall be thatwhich was applicable on 1 July 2013 in respect of him orher, and(ii) the operation of that pay scale, on and from 1 July 2016,shall be by reference to service of the public servant onand from 1 July 2016, but this is subject to subsection (2).(2) Subsection (1)(b)(ii) does not operate to exclude for the purposeof the operation of the pay scale so much of the service of thepublic servant, before 1 July 2013, as would have been reckonedfor the purpose of the next immediate increment that, but for thesuspension of the pay scale by virtue of subsection (1), wouldhavefallen to be awarded to him or her on or after 1 July 2013.(3) The reference in subsection (1) to the pay scale that is applicablein respect of a public servant (being a public servant to whomthe amendment hereafter mentioned relates) is a reference to thatpay scale as it stands adjusted by virtue or in consequence of theamendment of the Act of 2009 made by section 2.(4) For the avoidance of doubt, subsection (1) has effect inrelation to a pay scale that, in consequence of a public servant’sappointment or promotion to a position after 1 July 2013 (but before1July2016),fallstobeappliedsubsequentto1July2013asithaseffect in relation to a pay scale that applies to a public servant on 1July 2013, but with the substitution in that subsection for the referenceto 1 July 2013 (where it secondly occurs) of a reference to thedate of such appointment or promotion of the public servant.(5) Notwithstanding anything in the preceding subsections of thissection, subsection (1) shall—(a) apply to a public servant only to the extent specified in theagreement, or(b) apply to a public servant with such modifications as arespecified in the agreement,11

FINANCIAL EMERGENCY IN THE PUBLIC INTEREST ACT 2013S.7[No. 18.] Financial Emergency Measures in the [2013.]Public Interest Act 2013.to whomacollectiveagreementrelatesandwhichagreement—(i) for the time being stands registered with the LabourRelations Commission for the purposes of this section,and(ii) provides for the application to such a public servant ofsubsection (1) in the manner described in paragraph (a)or (b), asthecasemaybe.(6) A collective agreement for the purposes of subsection (5) maybe entered into at any time (whether before or after 1 July 2013).(7) In this section—“collective agreement” means an agreement by or on behalf of apublic service body on the one hand, and by or on behalf of a body orbodies representative of the public servants to whom the agreementrelates on the other hand;“public servant” has the meaning it has in the Act of 2010.Exemption, etc.,from operation ofsection 7 in certaincircumstances.8.—(1) Where in respect of a particular public servant or class orgroup of public servants the Minister is satisfied that—(a) exceptional circumstances exist (because of some particularaspect or condition of their employment, office orposition) in respect of such public servant, class or groupand a substantial inequity would thereby arise, or(b) any award under an arbitration agreement would, but forsection 7, resultintheamendmentofanapplicablepayscale,and there is in the circumstances a necessity for a distinction fromother public servants or from other classes or groups of public servants,as the case may be, then the Minister, if he or she considersit to be just and equitable in all the circumstances to do so, mayby direction—(i) exempt that public servant, class or group from the operationof section 7, eitherentirelyortosuchextentastheMinister considers appropriate, or(ii) modify the operation of section 7 to permit the awardingof increments in such manner as the Minister thinks fit,and the provisions of section 7 shall be read subject to any suchdirection.(2) In this section “public servant” has the meaning it has in theAct of 2010.37Certain pensionrights not affected.9.—(1) This section applies to—(a) a person who was at some time before 1 July 2013 a publicservant but is on 1 July 2013 in receipt of a pension underapublicservicepensionscheme,12

FINANCIAL EMERGENCY IN THE PUBLIC INTEREST ACT 2013[2013.] Financial Emergency Measures in the [No. 18.]Public Interest Act 2013.S.9(b) a person who was a public servant on 1 July 2013, butceases to be a public servant on or before—(i) 31 August 2014, or(ii) a later date specified by the Minister by order inaccordance with subsection (3),and who, on ceasing to be a public servant, is entitled topayment of a pension under a public service pensionscheme in respect of his or her service as a public servantor a person who was at some time before 31 August 2014or such later date as may be specified under subparagraph(ii) apublicservantandhasapreservedbenefitinapublicservice pension scheme in respect of which the preservedpension age of the person falls on or before that date, and(c) a person who becomes entitled to payment of a publicservice pension as a spouse, civil partner or child of aformer public servant to whom paragraph (a) or (b)applied.38(2) The following shall be disregarded for the purpose of calculatingany pension entitlement (including an entitlement to a lump sumand an entitlement to periodic payments of pension) of a person towhom this section applies—(a) the amendment made by section 2 inserting a section 2Ain the Act of 2009,(b) any suspension of the operation of a pay scale by virtue ofsubsection (1) of section 7, or(c) the application of subsection (1) of section 7 to a person,in the manner described in paragraph (a) or (b) of subsection(5) of that section, by a collective agreement referredto in that subsection (5).(3) For the purpose of making an order pursuant to subsection(1)(b)(ii), theMinistershalltakeintoaccountsuchlegal,superannuationand personnel management issues affecting public servicebodies as he or she considers appropriate, and shall consult with anybody or other person that he or she considers appropriate.(4) In this section—“civil partner” has the meaning it has in the Civil Partnership andCertain Rights and Obligations of Cohabitants Act 2010;“preserved benefit” has the meaning it has in the Public ServiceSuperannuation (Miscellaneous Provisions) Act 2004;“preserved pension age”, in relation to a preserved benefit in apublic service pension scheme, means the age of the public servantor former public servant concerned at which the preserved benefitbecomes payable to him or her under the scheme;“public servant” has the meaning it has in the Act of 2010;“public service pension scheme” has the meaning it has in the FinancialEmergency Measures in the Public Interest Act 2009.13

FINANCIAL EMERGENCY IN THE PUBLIC INTEREST ACT 2013[No. 18.] Financial Emergency Measures in the [2013.]Public Interest Act 2013.Amendment ofSchedule to Act of2009.10.—(1) The Schedule to the Act of 2009 is amended by deletingthe following:“21. Railway Procurement Agency.22. National Treasury Management Agency.”.(2) The deletion effected by subsection (1) shall not have theeffect of causing section 2 of the Act of 2009 to apply to a personwho is employed by, or who holds any office or other position in,either of the bodies mentioned in that subsection.Amendment ofFinancialEmergencyMeasures in thePublic Interest Act2009.11.—With effect on and from 1 January 2014, section 2 of theFinancial Emergency Measures in the Public Interest Act 2009 isamended—(a) in paragraph (d) ofsubsection(3)bysubstituting“2014”for “2010”,(b) by substituting the following for Table D to subsection (3):“Table DAmount of RemunerationUp to €15,000Any excess over €15,000 but notover €20,000Any excess over €20,000 but notover €60,000Any amount over €60,000Rate of deductionExempt2.5 per cent10 per cent10.5 per cent39(c) in subsection (3B) by substituting “2014” for “2012”, and(d) by substituting the following for the Table to subsection(3B):“Table”,Amount of RemunerationUp to €15,000Any excess over €15,000 but notover €20,000Any excess over €20,000 but notover €60,000Any amount over €60,000Rate of deductionExempt2.5 per cent10 per cent10.5 per cent”.Review of this Actand certainenactments of likecharacter.12.—(1) For the purposes of this section the “relevant Acts” are—(a) in respect of the application of this section in the year2013—(i) the Financial Emergency Measures in the PublicInterest Act 2009;14

FINANCIAL EMERGENCY IN THE PUBLIC INTEREST ACT 2013[2013.] Financial Emergency Measures in the [No. 18.]Public Interest Act 2013.S.12(ii) the Act of 2009; and(iii) the Act of 2010;(b) in respect of the applicationof thissection in theyear 2014and subsequent years—(i) each of the enactments specified in paragraph (a),and(ii) this Act.(2) Before 30 June in 2013 and every year after 2013, the Ministershall—(a) carry out a review of the operation, effectiveness andimpact of the relevant Acts, having regard to the overalleconomic conditions in the State and national competitiveness,40(b) consider whether or not any of the provisions of the relevantActs continue to be necessary having regard to thepurposes of those Acts, the revenues of the State andState commitments in respect of public service pay andpensions,(c) make such findings as he or she thinks appropriateconsequent on the review and consideration, and(d) cause a written report of his or her findings resulting fromthe review and consideration to be prepared and laidbefore each House of the Oireachtas.(3) The following provisions are repealed—(a) section 13 of the Financial Emergency Measures in thePublic Interest Act 2009;(b) section 7 of the Act of 2009; and(c) section 10 of the Act of 2010.(4) If any step taken under a provision specified in subsection (3)is commenced but not completed before the commencement of thissection then that step may be continued and completed under subsection(2).13.—This Act may be cited as the Financial Emergency Measuresin the Public Interest Act 2013.Short title.15

Teachers’ Union of Ireland, 73 Orwell Road, Rathgar, Dublin 6.Email: tui@tui.ie Phone: 01 492 2588 Fax: 01 492 2953www.tui.ie