In 2017, the government agreed a policy on increasing public service pensions in payment for the period to end-2020, as part of its commitments under the Public Service Stability Agreement 2018-2020 (PSSA).
Under this policy, which applied for the period 1 September 2017 to 31 December 2020, pay increases granted to serving staff were passed on to those pensions awarded under pre-existing public service pension schemes where the salary on which the pension was based did not exceed the salary of serving staff with the same grade and scale point, after the pay increase had been applied. If it qualified, the pension was eligible for an increase to the extent that this would ensure alignment with the pay of equivalent serving staff.
This approach took account of the differentiation of pensioner cohorts between pre-and post-end February 2012 retirees, and was intended to deal with the complexities of unwinding the FEMPI pay-related provisions.
This pension increase policy was extended when sanction was given for the pay increases granted under ‘Building Momentum - A New Public Service Agreement 2021-2022’ to be passed through to eligible pensions (Circular 10/2021), and further continued to end-2023, in line with the extension to Building Momentum for the same period.