More than 7,000 former An Post workers are set for a 6pc pension boost.
n Post said a Labour Court recommendation allows for a once off 5pc increase to the pensionable pay of members who are yet to retire and pensioners in its scheme.
The 5pc increase will be backdated to January 1 last year.
A further 1pc will be due from July 1 this year.
An Post said in a statement that it welcomes the court’s recommendation that relates to a €503m surplus in the scheme.
It said the increases are subject to approval by Minister for Transport and Minister for Environment, Climate and Communications, Eamon Ryan.
The company said all allowances would become fully pensionable under the recommendations, bar a single “change allowance”.
David McRedmond, An Post CEO, said: “We are delighted that we have been able to reach an agreement that provides a positive outcome for our employees and all members of the pension scheme and would like to thank and acknowledge the huge effort by the An Post Group of Union representatives and the Labour Court.”
Pensioners will benefit from a total payment of 10pc over 18 months, once approved.
An An Post spokesperson said this is made up of 2pc from January 1 last year, 2pc from January 1 next year, which still has to be approved, and the two new payments of 5pc and 1pc.
“Also, the actuarial reduction factors for those employees who retire before normal retirement age of 66 will be improved, allowing for better terms for these employees,” said the statement.
The Communications’ Workers Union said it had secured a 10.23pc increase in pensionable pay and pensions for An Post workers and pensioners.
“Following 12 months of detailed and extensive negotiations with the company culminating in this Labour Court ruling, pensionable pay and pensions at An Post will now increase by a cumulative 10.23pc over an 18-month period (from 1 January 2022 to 1 July 2023),” it said.
It said worker allowances including night duty, driver and shift allowance, will be restored to 100pc pensionable.
The union said the increases will impact the future pension benefits of 9,000 An Post workers and 7,000 pensioners.
“It has been a key objective of the CWU, supported by our fellow unions Fórsa and the AHCPS, to reduce the gap between actual and pensionable pay at An Post, and to deliver a meaningful increase for An Post pensioners,” said Sean McDonagh, general secretary of the CWU.
