Information to Assist GRA Members in deciding on the proposed Public Service Stability Agreement (PSSA)
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1 Information to Assist GRA Members in deciding on the proposed Public Service Stability Agreement (PSSA) Background: The proposed Public Service Stability Agreement (PSSA) is the final outcome of negotiations on Public Sector pay involving all Public-Sector Unions and Associations The PSSA is an extension of the Lansdowne Road Agreement which we are signed up to following a 75% acceptance of the Labour Court Recommendation of November Information for Members: The following table sets out our analysis of each section of the proposed PSSA. Section PSSA : Information for Members Analysis 1 Introduction Extension of the Lansdowne Road Agreement: Labour Court recommendation of 3 rd November is secured. This references and includes: - Managements final proposals to the GRA (including the Draft Agreement of 23 rd September 2016, and additional proposals following the assistance of the Workplace Relations Commission-WRC), and The letter of 26 th September 2016 from the Department of Justice & Equality and the Department of Public Expenditure & Reform (DEPR) to the GRA. Economic and Fiscal Context: The current economic fiscal position as set out by DPER set the context under which these discussions took place. 2 Supporting ongoing reform and delivering productivity and accountability Our Public Service 2020 Development and Innovative Framework In line with previous agreements. Equality and Diversity The GRA fully supports equality and diversity. Delivering Greater Productivity: Any productivity claim is based on its merits and the outcome of an independent third-party determination is uncertain. The Commission on the Future of Policing in Ireland is to report by September If this agreement is accepted, the GRA agrees to engagement PSSC - Information for Members 15 th September 2017 Page 1of 6
2 and consultation 1 in respect of the implementation of any recommendations agreed by government that will arise. 2 The PSSA dispute mechanisms apply in relation to any differences arising. Labour Court Recommendation of 3 rd November Under section 8 we retain the right to pursue a productivity claim in relation to changes to the roster; the introduction of Pulse 6.8; aspects of the Modernisation and Renewal Programme ; cooperation with the expansion of powers of the Reserve WRC Clarification Meeting of 13 th Jun DPER & Management confirm that with regard to the unknown changes possibly arising from the Commission on the Future of Policing in Ireland, we will have scope to make a productivity claim. Rostering: The PSSA commits all public servants to ongoing review of rostering but states that any changes made will be agreed. The Labour Court has however determined that roster changes, among others, are a potential basis for a productivity claim. (Labour Court Recommendation of 3 rd Nov 2016). Westmanstown as currently constituted, is still available as an option (WRC 13 th June ). The proposed package of measures which includes the Westmanstown Draft Working Time Agreement 2016 together with the related Roster Proposal is still the preferred management option. Management have stated that delay may result in consideration of new green field options. The advantages of this current option include: - The current Westmanstown Process prevents external interference. Any changes will be agreed. Any revised roster will be trialled before ballot. Time & Attendance: Time & Attendance systems are designed to ensure the accuracy of attendance records. We will have an input. This will include consultation and development of protocols. Implications captures all hours worked and ensures payment for same, removes ambiguity of entitlements, increases accountability and ensures EWTD / WTA compliance. 1 Quote is from Section 3.2 Lansdowne Road Agreement ( ) as referenced in section 2.3 of the PSSA. 2 3 rd last paragraph of PSSA section This was a clarification meeting held at the Workplace Relations Commission (WRC) on the 13 th June 2017 between the GRA and the Official Side ( management, DPER & DOJ). It was chaired by the WRC. PSSC - Information for Members 15 th September 2017 Page 2of 6
3 Professionalisation: No issues arise for GRA members. Performance & Accountability: There will be no change to the recently agreed Performance, Accountability and Learning Framework (PALF). Public Service Mobility: This section is directed at transfers between agencies. It will not impact on existing internal transfer mechanisms, allowances and expenses. Standardisation of Payroll Arrangements: Proposal is for fortnightly pay intervals. GRA agreement is required for changes. Apprenticeship and Traineeship in the Public Service: Does not apply to í. Recruitment: See 3 below. Working Hours: There is a continuing requirement to work the 15 additional hours each year (as per current arrangements) for the duration of this agreement. Working Patterns All Working Time in An Siochána is governed by the Working Time Agreement. Work-life Balance: Existing Work-life policies as referenced in the WTA and elsewhere will continue to apply. Agency Staffing: No issues arise. Recruitment & Retention: The Public Service Pay Commission is to examine issues in respect of recruitment by the end of It is open to parties who accept this agreement to make a submission. New Entrants: This agreement fails to immediately eliminate the lengthened salary scale for new entrants introduced in The additional lower entry points introduced for new entrants under FEMPI will be reviewed within 12 months of the start of this agreement and subsequently addressed. PSSC - Information for Members 15 th September 2017 Page 3of 6
4 Pay Unwinding of FEMPI: Minimum gross pay increase of 5.87% for all members see appendix 1 for details of financial implications. Pay - Outstanding Adjudications: As there are no outstanding adjudications, no issues arise. 6 Pensions Additional Superannuation Contribution: As of and from the 1 st January 2019, the temporary Pension Related Deduction/Pension Levy (PRD) will be replaced legislatively by a permanent Additional Superannuation Contribution (ASC). The ASC rates will remain the same as the current PRD rates for all pre-2013 public sector entrants (including í) who can attain full pension entitlement in less than 40 years. The liability for Public Servants who are required to serve 40 years will be reduced by 575 gross per annum by the 1 st January This development is an unprecedented separation of the so called fast accrual group from the general public service. So called fast accrual members, who remain on after 30 years service will have continued ASC liability with no additional benefit. ASC deductions will be lower than the current PRD deductions as follows: - Unlike PRD, the ASC shall not be deducted from non-pensionable earnings (e.g. overtime) and non-pensionable allowances (e.g. detective, juvenile liaison officer, uniform, plain clothes, boot and community relations allowances). Exemption limits will increase and Deduction rates will reduce for post entrants. Like the current PRD, the ASC will be tax deductible at your marginal rate. Public Service Pensions in Payment: Pension benefits are preserved. Pension link to pay retained and link to Consumer Price Index (CPI) averted. Section 40 of the Public Service Pensions Act 2012: Under the PSSA, pre-2013 pensions will continue to be linked to pay for the duration of the agreement. Mandatory Retirement Age Acceptance of this agreement will entitle the GRA to make a submission. Resolving Disagreements: The Conciliation and Arbitration machinery will be available to the GRA as the first steps in a dispute resolution process. Referral to a WRC chaired Sectoral Oversight Body will then be followed by referral to the Lansdowne Road Agreement (LRA) Oversight Body. PSSC - Information for Members 15 th September 2017 Page 4of 6
5 The GRA will directly represent members at all stages. 8 Ensuring Compliance with this Agreement Maintenance of Industrial Peace This is a normal provision of these agreements. LRA Oversight Body Direct GRA Representation is a new development and achievement. No Cost Increasing Claims Outside of the pay increases provided for in the agreement, there shall be no cost-increasing claims for improvements in pay and conditions this is a normal provision of these agreements. No additional increases above the agreement until after Review of Agreement Where the economic assumptions underlying the agreement need to be revisited, the parties have committed to further engagement. Protections & Guarantees Additional Clarifications GRA is now further integrated with the WRC. Agreement reinforces consultation and engagement rights and delivers direct access to the LRA Oversight Body. WRC Clarification Meeting of 13 th June 2017: (Chaired by the WRC and attended by the GRA. management, DPER & DOJ). PSSA confirms achievements of and builds on the Labour Court Recommendation of November Primacy of Westmanstown Roster / WTA process confirmed (also confirmed at Westmanstown 25 th Aug 2017). Conciliation and Arbitration process reaffirmed with confirmation that the forum will be the first stage in the resolution of any issues arising in the interpretation of the terms of the PSSA. Dispute machinery sectoral oversight to be chaired by WRC. Avoids the re-imposition of FEMPI based increment freezes. See example of potential impact in appendix 3. IR Stability and the GRA Agenda: Secures IR stability within which the range of issues currently being pursued by the GRA can be advanced including: - Pending legislation regarding access to state IR institutions and our status. PSSC - Information for Members 15 th September 2017 Page 5of 6
6 Internal consultation and dispute resolution mechanisms within An Siochána. Commission on the Future of Policing in Ireland. Review of the sick regulations. Restoration of allowances. 39-Hour week. 1/41 overtime divisor. Compensatory rest and abstractions. Engagement with management on a range of ongoing issues. This will also allow the Association to focus on internal GRA reforms and developments including: - Outcome of the independent Ampersand Review of the GRA. Issues of governance. Impacts of PSSA Pay Increases: PSSA recovers gross basic pay to within 1% of 2008 levels taking into account the so called fast accrual ASC deduction see appendix 2. Increases will also have a corresponding positive effect on unsocial hours earnings and overtime earnings. As increases are percentage based, the increase rostered unsocial hours payments will also have a positive impact on pensions and gratuities. Pay certainty until December Appendices: Appendix 1 details the Financial Implications of PSSA - already circulated. Appendix 2 is the Calculation of Restoration Achieved. Appendix 3 is the calculation of the potential long-term impact of a further 3-year pay freeze. Key to Abbreviations: LRA = Lansdowne Road Agreement 2013 to PSSA = Public Service Stability Agreement 2018 to WRC = Workplace Relations Commission. DPER = Department of Public Expenditure and Reform. DOJ = Department of Justice and Equality. End PSSC - Information for Members 15 th September 2017 Page 6of 6
7 Appendix 1 : Financial Implications of the Public Service Stability Agreement (PSSA) for Members of Rank Entry Date Points on Scale Sept /1/18 1/10/18 1/1/19 1/9/19 1/1/20 1/10/20 1% 1% PSSA Increases in Annual 1% up to 30, % 0.5% up to 32,000 2% Total PSSA Increases January 2018 to October 2020 Annual Increases Pre ,820 50,318 50,821-51,710-52,744 2, % Post-95 Post to 12 47,793 48,271 48,754-49,607-50,599 2, % 13 to 18 49,512 50,007 50,507-51,391-52,419 2, % 19 51,448 51,963 52,482-53,401-54,469 3, % 1 29,405 29,699 29,996 30,296 30,826 30,981 31,600 2, % 2 31,382 31,696 32,013-32,573-33,225 1, % 3 34,240 34,583 34,929-35,540-36,251 2, % 4 35,787 36,145 36,507-37,145-37,888 2, % 5 38,062 38,443 38,827-39,507-40,297 2, % 6 41,495 41,910 42,329-43,070-43,932 2, % 7 43,765 44,203 44,645-45,426-46,335 2, % 8 45,818 46,276 46,739-47,557-48,508 2, % 9 to 13 47,793 48,271 48,754-49,607-50,599 2, % 14 to 19 49,512 50,007 50,507-51,391-52,419 2, % 20 51,448 51,963 52,482-53,401-54,469 3, % Examples of Increases in Overtime Rate / x 1.5 Pre % Post-95 Post to % 13 to % % % % % % Examples of Increases in Overtime Rate / x 2 Pre % Post-95 Post to % 13 to % % % % % % Examples of Increases in Sunday Premiums per 8-hour shift Pre % Post-95 Post to % 13 to % % % % % % Night duty premiums will similarly increase by 5.87% Page 1 of 2
8 ASC deductions will be lower than the current PRD deductions Unlike PRD, the ASC shall not be deducted from non-pensionable earnings (e.g. overtime) and non-pensionable allowances (e.g. detective, juvenile liaison officer, uniform, plain clothes, boot and community relations allowances). Example: For every 1,000 Overtime earned, this will mean a saving of 100. Exemption limits will increase for Post-2012 entrants, reducing the cost to those members. Deduction rates will reduce for Post-2012 entrants, also reducing the cost to those members. Like the current PRD, the ASC will be tax deductible at your marginal rate. ASC deductions for post-2012 Entrants The bands for post-2012 members will widen and the percentage deductions will reduce.. Band from 1st January 2019 Rate from 1st January 2019 Up to 32,000 Exempt 32,000 to 60, % 60,000 plus 7% Band from 1st January 2020 Rate from 1st January 2020 Up to 34,500 Exempt 34,500 to 60, % 60,000 plus 3.5% Post-2012 Entrants : Reduction in Liability when ASC replaces PRD Liability will reduce as service increases. Point on Post-2012 Scale Public Services Stability Agreement Members of Rank Conversion of Existing Pension Related Deduction (PRD - Pension Levy) into a permanent Additional Superannuation Contribution (ASC) The PRD will be converted into a permanent Additional Superannuation Contribution (ASC). ASC deductions for pre-2013 Entrants The bands and percentage deductions for pre-2013 members will not change. Band Rate Up to 28,750 Exempt 28,750 to 60,000 10% 60,000 plus 10.50% Reduction in Annual Liability from 1st January 2019 Reduction in Annual Liability from 1st January Post-2012 Entrants : Rostered Unsocial Allowances ASC will similarly reduce compared to the current PRD. Page 2 of 2
9 Appendix 2 : Comparison of Post-PSSA 2020 with Pre-Cuts 2008 for Members of Rank Pre Cuts Post-PSSA Comparison Post-PSSA with Adjustments Comparison Points on Scale Add Subtract A B C = B - A D E F = B + D - E F - A (F-A)/A Comparisions Pre-95 Post-95 Sept Rent Allowance Oct 2020 Comparision 2020 Vs Annual Leave Premium Adjustments to 2020 Additional Superannuation Contribution 2020 Basic Pay Adjusted Comparision of 2020 Adjusted with ,101 52,744 1, ,399 50, % 8 to 12 48,899 50,599 1, ,185 48, % 13 to 18 50,757 52,419 1, ,367 50, % 19 52,850 54,469 1, ,572 52, % Post-2012 Members : Comparison of 2020 with 2013 Post-2012 Points on Scale Oct 2013 (no rent allowance) Oct 2020 Comparision 2020 Vs Add Annual Leave Premium Adjustments to 2020 Subtract Additional Superannuation Contribution 2020 Basic Pay Adjusted Comparision of 2020 Adjusted with ,171 31,600 8, ,110 8, % 2 25,472 33,225 7, ,735 8, % 3 28,302 36,251 7, ,702 8, % 4 29,834 37,888 8, ,286 8, % 5 32,407 40,297 7, ,614 8, % 6 35,840 43,932 8, ,127 8, % 7 38,110 46,335 8, ,451 8, % 8 40,163 48,508 8, ,552 8, % 9 to 13 42,138 50,599 8, ,573 8, % 14 to 19 43,857 52,419 8, ,332 8, % 20 45,793 54,469 8, ,314 8, % Changes included in above comparisions: 510 annual leave premium introduced in April Temporary Pension Related Deduction, introduced in 2009, will be replaced by the ASC on 1st January Rent Allowance and the 500 Increase in Rent Allowance assimilated into Pay. Other changes not included in above comparisions: USC introduced & Tax Rates changed for all citizens. Pre-tour briefing introduced in January 2017 with associated additional overtime earnings. Corresponding increases in unsocial hours allowances arising from assimilation of rent allowance into pay. Conclusions of Comparisons PSSA will recover Gross Basic Earnings to within 1% of 2008 levels, after gross ASC is deducted. Page 1 of 1
10 Appendix 3 : Potential Effects of a 3-Year Increment Freeze on Lifetime Earnings for a now on Point 1 of the Post-2012 Pay Scale Years of Service Point on Scale No Freeze 3 Year Freeze Reductions 's 's 's % On Attestation 1 29,405 29,405 After 1 Year (84 weeks) 2 31,382 29,405 1, % After 2 Years 3 34,240 29,405 4, % After 3 Years 4 35,787 29,405 6, % After 4 Years 5 38,062 31,382 6, % After 5 Years 6 41,495 34,240 7, % After 6 Years 7 43,765 35,787 7, % After 7 Years 8 45,818 38,062 7, % After 8 Years 9 47,793 41,495 6, % After 9 Years 10 47,793 43,765 4, % After 10 Years 11 47,793 45,818 1, % After 11 Years 12 47,793 47,793 After 12 Years 13 47,793 47,793 After 13 Years 14 49,512 47,793 1, % After 14 Years 15 49,512 47,793 1, % After 15 Years 16 49,512 47,793 1, % After 16 Years 17 49,512 49,512 After 17 Years 18 49,512 49,512 After 18 Years 19 49,512 49,512 After 19 Years 20 51,448 49,512 1, % After 20 Years 20 51,448 49,512 1, % After 21 Years 20 51,448 49,512 1, % After 22 Years 20 51,448 51,448 After 23 Years 20 51,448 51,448 After 24 Years 20 51,448 51,448 After 25 Years 20 51,448 51,448 After 26 Years 20 51,448 51,448 After 27 Years 20 51,448 51,448 After 28 Years 20 51,448 51,448 After 29 Years 20 51,448 51,448 After 30 Years 20 51,448 51,448 Lifetime Totals 1,453,376 1,387,247 66, % Notes : > All figures are at 2017 money values. > Future national pay rises and inflation are not taken into account. > An increment Freeze would similarily impact on lifetime Unsocial Hours Allowances and Overtime Earnings, as well as on career average Pension and Gratuity. Page 1 of 3
11 Appendix 3 : Potential Effects of a 3-Year Increment Freeze Years of Service on Lifetime Earnings for a now on Point 6 of the Post-2012 Pay Scale Point on Scale No Freeze 3 Year Freeze Reductions 's 's 's % On Attestation 1 29,405 29,405 After 1 Year (84 weeks) 2 31,382 31,382 After 2 Years 3 34,240 34,240 After 3 Years 4 35,787 35,787 After 4 Years 5 38,062 38,062 After 5 Years 6 41,495 41,495 After 6 Years 7 43,765 41,495 2, % After 7 Years 8 45,818 41,495 4, % After 8 Years 9 47,793 41,495 6, % After 9 Years 10 47,793 43,765 4, % After 10 Years 11 47,793 45,818 1, % After 11 Years 12 47,793 47,793 After 12 Years 13 47,793 47,793 After 13 Years 14 49,512 47,793 1, % After 14 Years 15 49,512 47,793 1, % After 15 Years 16 49,512 47,793 1, % After 16 Years 17 49,512 49,512 After 17 Years 18 49,512 49,512 After 18 Years 19 49,512 49,512 After 19 Years 20 51,448 49,512 1, % After 20 Years 20 51,448 49,512 1, % After 21 Years 20 51,448 49,512 1, % After 22 Years 20 51,448 51,448 After 23 Years 20 51,448 51,448 After 24 Years 20 51,448 51,448 After 25 Years 20 51,448 51,448 After 26 Years 20 51,448 51,448 After 27 Years 20 51,448 51,448 After 28 Years 20 51,448 51,448 After 29 Years 20 51,448 51,448 After 30 Years 20 51,448 51,448 Lifetime Totals 1,453,376 1,423,517 29, % Notes : > All figures are at 2017 money values. > Future national pay rises and inflation are not taken into account. > An increment Freeze would similarily impact on lifetime Unsocial Hours Allowances and Overtime Earnings, as well as on career average Pension and Gratuity. Page 2 of 3
12 Appendix 3 : Potential Effects of a 3-Year Increment Freeze Years of Service on Lifetime Earnings for a now on Point 12 of the Post-95 Pay Scale Point on Scale No Freeze 3 Year Freeze Reductions 's 's 's % On Attestation 1 31,657 31,657 After 22 weeks 2 34,240 34,240 After 1 Years 3 35,787 35,787 After 2 Years 4 38,062 38,062 After 3 Years 5 41,495 41,495 After 4 Years 6 43,765 43,765 After 5 Years 7 45,818 45,818 After 6 Years 8 47,793 47,793 After 7 Years 9 47,793 47,793 After 8 Years 10 47,793 47,793 After 9 Years 11 47,793 47,793 After 10 Years 12 47,793 47,793 After 11 Years 13 49,512 47,793 1, % After 12 Years 14 49,512 47,793 1, % After 13 Years 15 49,512 47,793 1, % After 14 Years 16 49,512 49,512 After 15 Years 17 49,512 49,512 After 16 Years 18 49,512 49,512 After 17 Years 19 51,448 49,512 1, % After 18 Years 19 51,448 49,512 1, % After 19 Years 19 51,448 49,512 1, % After 20 Years 19 51,448 51,448 After 21 Years 19 51,448 51,448 After 22 Years 19 51,448 51,448 After 23 Years 19 51,448 51,448 After 24 Years 19 51,448 51,448 After 25 Years 19 51,448 51,448 After 26 Years 19 51,448 51,448 After 27 Years 19 51,448 51,448 After 28 Years 19 51,448 51,448 After 29 Years 19 51,448 51,448 After 30 Years 19 51,448 51,448 Lifetime Totals 1,527,143 1,516,178 10, % Notes : > All figures are at 2017 money values. > Future national pay rises and inflation are not taken into account. > An increment Freeze would similarily impact on lifetime Unsocial Hours Allowances and Overtime Earnings, as well as on career average Pension and Gratuity. Page 3 of 3
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