Waterford Labour Deputy Brian O'Shea has been informed by the Minister for Finance Brian Lenihan T.D. that the earnings link or "pay parity" basis for post-retirement increases, is a feature of Irish public services schemes.

In the Civil Service increases in pensions are awarded at the discretion of the Minister for Finance under Regulations made by him under Section 29 of the Pensions (Increase) Act 1964. The Act does not prescribe what form the increases should take or how they should be calculated.

A typical provision in a public service scheme would be that increases may be granted under the scheme as may be authorised from time to time by the Minister responsible, with the consent of the Minister for Finance.

The Minister concluded that as the Government has made clear on a number of occasions, all public expenditure, pay and non-pay, current and capital, is under review in the context of the budget.

Deputy O'Shea had asked the Minster for Finance if he would confirm the link between public service pay and pensions will be kept. He stated this morning that any break of the link between the public service pay and pensions would have serious implications for public service pensioners.

He is further pursuing this matter with the Minister for Finance.