Group of retired state employees due for bumper pension increase due to high inflation

Some 500 retirees are in line for a 5.5% pension hike

Michael McGrath, the Public Expenditure and Reform Minister, is expected this week to be asked to approve the increase for a cohort of around 500 retirees. Picture: Barry Cronin

A small group of retired state employees are in line for significant pension increases this year due to the level of inflation.

All new entrants to the public service from January 1, 2013 are enrolled in the Single Public Service Pension Scheme which is a career average earnings scheme with benefits indexed in line with increases in the Consumer Price Index, and therefore impacted by inflation levels.

The scheme was intended to make pensions cheaper ...