'We feel deeply let down': An Post pensioners protest in Cork to demand end to pension cap
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An Post pensioners protested in the rain in Cork City on Friday morning to demand the scrapping of a pension cap following their “decade of sacrifice”.
The Post Office Pensioners United group, which represents about 700 retirees, some in their late 80s and early 90s, demonstrated outside the city’s GPO to highlight how their pension increases have been capped under the terms of a decade-long deal, introduced in 2013, to help save the company's pension fund, which was in serious deficit at the time.
That deal has expired but the pensioners have accused An Post and its group of unions, the Communication Workers Union in particular, of ignoring their plight and of “throwing them under the bus”.
“We feel deeply let down by the company and the unions,” protest organiser, Paul Moreland, said.
Most of the pensioners were civil servants who were transferred to An Post in 1984 under the terms of the Postal and Telecommunications Services Act 1983 that guaranteed them “not less favourable conditions” in their pensions than would be the case if they had remained in the civil service.
Increases in their pensions were paid over the 30-year period up to January 2014 under the ‘pay-pension parity’ basis that has operated in the civil service since the early 1970s — which meant pensioners received the same level of increases as current employees.
But when the An Post pension scheme ran into a deficit after the 2008 financial crash, a ‘pension accord’ was introduced in 2013 which capped pension increases at 2%, or the consumer price index, whichever was the lower.
At the same time, the company reduced its contribution to the pension fund from 14.4% to just 8%.
Sources say contribution is one of the lowest in the commercial semi-State sector. The pension fund recovered and now has a surplus of some €500m.
In 2024, An Post staff got a 4% pay increase, but pensioners only got 2% because of the accord.
Increases offered by An Post must be approved by the minister for communications and the minister for public expenditure — a very complex approval process which took eight months last year and nine months this year — resulting in the increase due from January 1, 2024, only being paid last week.
An Post has been asked for comment, and a response is awaited.
However, it has previously claimed increases are discretionary, that it is not operating in contravention of the “not less favourable” guarantee in the 1983 act, and that it has adopted a new policy in how it exercises that discretion.
But one pensioner, Matt Moran, said the figures involved equate to the figures in the accord, and this coincidence was too blatant to be credible.
“The accord, with its redefinition of salary, was a very cute move to undermine and circumvent Section 46(4) of the 1983 act that was intended by the Oireachtas as a copper-fastening of pension conditions after we transferred out of the civil service,” he said.
Mr Moreland said the bottom line was the pension accord must be terminated.
“Since its introduction, retirees have willingly borne significant sacrifices, and these have been acknowledged by An Post’s CEO David McRedmond, the unions, and trustees,” he said.
“Pensioners made this sacrifice because they understood that the pension fund was, at the time of the accord, seriously underfunded and having a deficit approaching half a billion euro.
“Now there is a healthy surplus of over €500m, an amount which comfortably exceeds the legislated minimum reserves."
“However, retired pensioners have no direct representation in decisions regarding their pensions, and any potential increases are subjected to a bureaucratic approval process."
“Many elderly pensioners have been unable to benefit from pension increases due to these lengthy delays.
“Given the current robust state of the pension fund and the hardships endured by pensioners, we urgently call on all parties to end the pension accord and streamline the process for pension increases to ensure fair and timely adjustments for retired members.”
In a statement, the CWU said a key objective of its negotiations on pay in all its pay talks had been the delivery of “meaningful increases” to pensions for An Post pensioners.
“This has delivered increases of 12.5% in pensionable pay since January 1, 2022,” a spokesman said.
“Furthermore, an actuarial review of the pension scheme will be conducted during the first half of 2025.
“It will examine the fund’s performance for the three years up to December 31, 2024, and its ability to meet future pension liabilities."
“Because of the support which workers provided under the An Post pension accord, and the support of the union and careful oversight by its trustees, the scheme is now in a strong position.
“Arising out of this actuarial review, the union has also stated its objective is to secure agreement on further increases in pensions to be paid in 2025.
“We agree that ministerial approval [which is a requirement of the scheme] creates unacceptable delays in processing increases in pensions that have already been agreed.
“We always exert the maximum pressure we can to ensure that pensions increases are paid promptly.”