Louth Senator backs call for CIE pension increase

Senator John McGahon has backed calls by the CIE Salaried Pensioners’ Association for an increase in their pensions, after it was revealed that the 22,701 CIE Salaried Pensioners have not had a pension increase since 2008.

CIÉ Salaried Pensioners' Association (CIÉSPA) represent the CIÉ Salaried Pensioners (who are funded from the CIÉ Superannuation Scheme 1951). The members held roles in clerical, supervisory and management positions in CIÉ before retiring. CIÉ includes Irish Rail, Dublin Bus and Bus Eireann.

CIÉSPA members are calling on the Board of CIÉ to award members a pension increase as soon as possible.

According to Senator McGahon, Willis Towers Watson, the independent actuarial advisors to the Committee of the CIÉ 1951 Superannuation Scheme have advised the association that based on figures supplied by CIÉ, that the Scheme is now running a surplus sufficient to award a pension increase of 2.6% this year, next year, and for the foreseeable future, while also operating within the Minimum Funding Standard required under the Pensions Act.

Before 2008, the Board of CIÉ, which holds the formal role in proposing pension increases, raised the pension in line with staff pay increases but have not approved any increase in the sixteen years since 2008.

“A number of former Irish Rail and Bus Eireann employees around Dundalk and County Louth were in touch with me about this issue, said Senator McGahon. “CIE have a moral responsibility towards their former staff and pensioners.

“The latest Census shows pensioners are living for longer and it is clear amid recent rises in inflation and the cost of living crisis, that pensions and wages are not keeping apace. Older pensioners in more rural areas are adversely affected as their pensions were based on their end of career salaries which were lower than others in larger areas which has led to an unfair two tier system depending on geography.

“The CIE Salaried Pensioners Association had called for an Oireachtas committee to be set up to examine the issue but I am hopeful the issue can and should be resolved rather than having to strong arm CIE management and unions.”

The Fine Gael Senator added: “I am asking the Minister for Transport if the Department will provide funding to ensure that the CIE 1951 Pension Scheme has sufficient funds to pay pension increases to CIE pensioners, taking into account that these public servants have not received a pension increase for 16 years; or alternatively whether this pension scheme will be incorporated into the general public service scheme.”