The delay in approving pension increases for approximately 20,000 retired employees of An Post and Eir has sparked outrage, with union representatives describing the situation as an "outrageous lack of respect". The Communications Workers’ Union (CWU) has voiced strong disapproval over what they deem a completely unjustified holdup by Minister for Communications, Patrick O’Donovan, regarding the authorization of agreed-upon pension hikes.
In response to this issue, the CWU is gearing up to organize a protest at the Dáil next week to draw attention to the plight of these retirees. Meanwhile, a spokesperson from the Department of Culture, Communications and Sport defended the delay, explaining that the thoroughness of the approval process is crucial to ensure proper governance protocols are followed.
According to union representatives, the board of Eir submitted a request for a 2 percent pension increase back in August of last year, while An Post sought approval for a 7 percent hike shortly thereafter.
These postponements have resulted in significant financial strain for many pensioners and their families, as outlined by CWU general secretary, Seán McDonagh. He emphasized that delaying these pension adjustments is far from a simple administrative matter. Instead, he argues, it reflects a conscious choice that exacerbates the difficulties faced by older individuals living on fixed incomes.
McDonagh further asserts that there is no valid financial reason behind this delay. He pointed out that both pension schemes are privately managed, highly regulated, and financially stable, meaning that the Exchequer faces no additional costs.
Despite the strong governance framework in place—complete with independent actuarial oversight—pensioners find themselves once again at the mercy of bureaucratic delays, with Minister O’Donovan’s office seemingly unable or unwilling to provide a timeline for when these necessary approvals might be granted.
This situation starkly contrasts with the timely annual adjustments made to public service pensions and state pensions. Notably, retired employees of Eir and An Post do not benefit from state pension increases.
Additionally, the union highlighted a troubling two-and-a-half-year delay in obtaining ministerial approval for pension payments for An Post employees who retired due to health-related issues. A spokesperson from the Department has indicated that An Post reached out on October 23 of last year, requesting permission for a pension increase of 6 percent retroactive to January 1 and an additional 1 percent from June 1 for its scheme members.
While the department has not specified a timeframe for concluding this decision-making process, they assured that efforts are actively underway to finalize the required approvals. Furthermore, they noted that a request for a 2.1 percent pension increase for Eircom pensioners effective July 1, 2025, was also received last year, and the department is currently consulting the New Economy and Recovery Authority (NewERA) for advice on this matter.
Once the report and recommendations from NewERA are available, the minister will review them to determine whether to grant approval, contingent upon receiving consent from the Minister for Public Expenditure, Infrastructure, Public Service Reform, and Digitalisation.
