Thousands of An Post workers in line for pension increase after minister approves payment
There are 17,300 members of the pension scheme. File Picture Denis Minihane
Thousands of An Post workers will now get a 2% increase to their pension after Public Expenditure Minister Michael McGrath approved the payment.
An Post retirees have been campaigning for the increase, which was due on January 1 but was "disgracefully" delayed amid concerns over the long-term viability of the company’s pension scheme.
However, the can reveal that Mr McGrath has approved the payment, backdated to the start of the year, so there will be no financial loss to those affected.
Amid protests from affected retired workers, An Post had sought ministerial approval for the pension increases earlier this year and “have been awaiting signoff from them”. Senior Government sources have confirmed that Mr McGrath has now sanctioned the increase.
Mr McGrath’s decision to approve the increase comes as the pension scheme has moved into a strong position in recent years and had a surplus of €500m at the end of 2021 with more than €4bn in assets.
According to the company’s most recent annual report, there are 17,300 members of the pension scheme.
In February 2022, An Post concluded a new agreement with the An Post Group of Unions in relation to pay and productivity which provided for a 2.5% increase in pay from January 1, 2022, and a further 2.5% increase from January 1, 2023.
A previous agreement with unions in 2014 provided that future pensionable pay increases would be limited to the lower of the increase in pay, the consumer price index or 2%, resulting in the increase being set at 2% for the current year.
Groups representing the pensioners have been involved in an extensive campaign to secure an increase in their pensions which was delayed due to concerns regarding the long-run funding of the pension scheme.
They held a protest outside the offices of the Department of Environment, Communications and Climate Change in August to express their frustration at the delay in approving the pension increase at a time of significant inflation in the economy.
Seán McDonagh, principal staff representative of the group of unions, says officials at the department have not confirmed a payment date for the pension hike due since January.
Mr McDonagh said the “inordinate delay” is causing unnecessary financial hardship.
"You will appreciate that the An Post pensioners are at a loss as to the reason for the delay in the payment of their entitlements,” Mr McDonagh states in the letter.
The letter states that the group of unions — which includes the Communications Workers Union, Fórsa, and the AHCPS — raised the delay with An Post management, who raised it with the department.
People Before Profit TD Paul Murphy said it was inexplicable that the modest increase had not been signed off on during a cost-of-living crisis.
“Here you have a group of people on fixed incomes who are being denied even a 2% increase by the Government, and I think the Government should quickly move to resolve it,” he said.
