Irish Rail, Dublin Bus and Bus Éireann workers to vote on CIÉ pension deal

CIÉ workers will vote in coming weeks on a new pension deal that offers retired staff increases up to 5 per cent, the company and its unions confirmed on Thursday.

The State public transport company and its Trade Union Group late on Wednesday agreed proposed changes to its pension plans, which have a €371 million shortfall, that include the first increase in 17 years for retired employees.

Unions plan to ballot current staff in coming weeks on the proposals, which make some changes to CIÉ’s two existing schemes and introduce a new fund for workers hired in the future.

Almost 6,400 pensioners will receive increases. Those who retired on or before December 31st 2020 will get 5 per cent, those who retired in 2021 will receive 4 per cent, while 2022 retirees will get 3 per cent.

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[ Retired CIÉ staff in line for first pension increase in 17 yearsOpens in new window ]

This will be the first boost to their pensions in 17 years.

CIÉ, owner of Irish Rail, Bus Éireann and Dublin Bus, is pledging €30 million to fund it.

In a statement, the company and unions said they “shared the aim of providing a long overdue increase for eligible CIÉ pensioners”.

Retired workers campaigned for years for an increase, but the schemes’ actuary cautioned that the deficit meant they could not afford this.

Government will provide a letter of support for the increase, while a new “pension protocol” will set future increases.

The company and unions said they would maintain promised benefits for workers now contributing to the schemes.

The pair spent months in talks, focusing on the risks facing both schemes while tackling the unions’ demand that members’ benefits would not change.

CIÉ employs more than 12,500 people, with more than 10,000 contributing to two defined benefit pension schemes, whose benefits are tied to worker’s pay.

These are called the regular wages scheme and the 1951 scheme.

Around 2,260 pensioners receive benefits from the 1951 scheme and 4,125 from the regular wages scheme.

Unions and the company propose that workers hired in future will join a new defined contribution scheme, whose benefits will not be tied to pay.

Current workers in the regular wages scheme would receive higher lump sums, up to 351 times the weekly pension from 325 times now.

Retiring drivers in the three companies could get lump sum increases of between €3,600 and €6,5000 through this proposal.

Staff in the 1951 scheme could retire earlier than planned with improved benefits.

They could also opt to cease paying into this scheme once they reach maximum service and contribute instead to the new defined contribution pension.

The company and unions said they would begin talks with “all stakeholders” in coming weeks, followed by a ballot of workers. Pensioners will not have a vote in that ballot.

Darragh O’Brien, Minister for Transport, welcomed the news. “It’s a strong example of proactive and inclusive dialogue that prioritises long-term outcomes for employees and pensioners alike,” he said.