LCR22708

1.Pensions

BACKGROUND:

2.This dispute could not be resolved at local level and was the subject of a conciliation conference under the auspices of the Workplace Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on25th November 2022 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on18th January 2023.





RECOMMENDATION:

This matter comes before the Court following extensive local engagement and extensive engagement with the assistance of the Workplace Relations Commission. The Court is advised by the parties that a range of understandings at negotiating level have been reached during those processes and that the following outstanding matters fall to be considered by the Court:

•Restoration of Pensionable Pay

•Company Contribution

•State Pension Offset.

The Court’s Recommendation below addresses these matters, and this Recommendation should be read in conjunction with any position that has been reached at negotiating level in direct engagement or with the assistance of the Workplace Relations Commission.

The Court has given careful consideration to the comprehensive written and oral submissions of the parties and the following is the Recommendation of the Court:


Restoration of Pensionable Pay

Once off increases should be applied to pensionable pay of all members as follows:

• 5% backdated to 1 January 2022 which was the date the date of the actuarial valuation

and

• a further 1% effective from 1 July 2023.

Company Contribution

The Court has noted that the scheme actuary has recommended an employer funding rate of 7% for 2022 where it has previously been 14.4%.

• The Court understands that the Company has expressed a willingness to pay a funding rate contribution of between 6% and 8% for the duration of the review.

• The Court also notes that the position of the An Post Group of Unions is that any reduction in the Company Contribution rate should match the equivalent rate of pensionable pay restoration.

• Taking the positions of both parties and the view of the scheme actuary into account the Court Recommends that the employer funding rate should be 8% for the duration of the review.

State Pension Offset

• The Trade Union Group has submitted that, having regard in particular to increases in the State Pension, changes should take place to the framework of the scheme so as to adjust the provisions for a State Pension Offset.

• All parties before the Court acknowledge that such a proposition raises issues of some complexity both within the scheme itself and having regard to the fact that the current Scheme framework is consistent with similar public sector schemes generally.

• It is not clear to the Court that the parties Pension Accord review provisions envisage a re-structure of this element of the Pension Scheme. The Court does however note the fact that the Trade Union Group seek to examine the possibility of prudent change in this element.

• In all of the circumstances, the Court does not recommend concession of the Trade Union Group claim at this time but does Recommend that the parties agree that an examination of the matter should take place in the reasonably near future such that all parties can explore the feasibility of change in the context of their joint commitment to the sustainability of the Scheme overall.

	Signed on behalf of the Labour Court
	Kevin Foley
CC	______________________
26th January 2023	Chairman