Public Service Stability Agreement 2018 to 2020

I would like to draw the honourable Member`s attention to the fact that the policy of increasing pensions currently in force in relation to the already existing civil service pension systems (i.e. without the single pension system) represents a temporary and conditional return to the non-legal and salary-related method of adjusting pensions that prevailed until financial difficulties arose. 9 Recognizing that the success of our public service begins with our employees, it will seek to develop our employees into strengthened organizations. The focus will be on improving outcomes for citizens, improving customer loyalty, and improving the accessibility of services and the quality of services. To support more efficient and cost-effective service delivery, new approaches to services and better use of our data are integrated. To support the two overarching objectives, evaluation capacity in policy-making will be strengthened and the cost-benefit ratio in expenditure decisions will be supported. Equality and diversity In the implementation of this Agreement, civil service bodies shall take into account the need to eliminate discrimination, promote equality and protect human rights, including for their staff. 5 1.2.6. The improvement in the economy has allowed the government to start a policy of reversing the FEMPI legislation for civil servants within the framework of the stability of the civil service As you may recall, the last tranche of the elements of the salary restructuring of the Stability Agreement for the Civil Service (2018/2020) is due to be paid on 1 October this year. This wage change, which is part of the broader dissolution of FEMPI, will result in a two percent increase in public sector wages.

6 5 The improved economy has enabled the government to initiate a policy to reverse FEMPI legislation for civil servants under the 2013-2018 Civil Service Stability Agreement. It is expected that this agreement will facilitate the final reversal of the FEMPI legislation. However, recognizing the economic and financial context described above and the need to ensure sustainability and continued prudence in the management of the wage bill, the Parties agree that such final settlement should be gradual and that any legislation necessary to implement the amendments described in this document will reflect such a step-by-step approach. The Parties recognise the importance of a stable environment for the industrial relations of the public service and those dependent on public services in society as a whole. 8 Ongoing changes are essential to ensure that the public service can adapt to the challenges of a rapidly changing environment. The parties note that the next phase of public service reform Our 2020 Development and Innovation Framework is being developed and will be published later this year. It will seek to build on the progress made under the first two plans published in 2011 and 2014. The framework is structured to support two overarching objectives of the plans, namely to improve outcomes for the public and to build resilient and agile public service organisations. By focusing on results, the framework will foster a culture of continuous improvement and innovation across our public service.

This next phase of civil service reform will aim to ensure that strategy and policy formulation are formulated, forward-looking and interconnected. 7 They undertake to maintain a stable environment in order to avoid disputes that would affect the level of service to the public as a result of the industrial peace, dispute settlement and management provisions of this Agreement. The provisions of this Agreement relating to public service remuneration shall depend, for each sector, organisation and grade, on satisfactory compliance with the provisions on flexible cooperation and ongoing changes; the satisfactory implementation of the reform and productivity programme set out in this Agreement, as well as the maintenance of stable industrial relations and the absence of industrial action in the areas covered by this Agreement. 6 2. Supporting ongoing reforms and ensuring productivity and accountability Our Public Service 2020 – Development and Innovation Framework Public service reform is one of the government`s top priorities. As the honourable Member knows, the single pension scheme introduced from 1 January 2013 for new entrants to the civil service is an average career pension scheme which provides for both the reference amounts accumulated by the length of service of staff during employment and the pensions paid to be increased in line with changes in the consumer price index. As you may have seen, there has been speculation in the media that this wage increase could be postponed or postponed given the strains on public finances caused by the COVID-19 pandemic. Under this policy, increases applied under the Public Service Stability Agreement 2018-2020 (PSSA) to pensions granted under existing public service schemes will be made if the salary on which the pension is based does not exceed the salary of serving staff of the same grade and scale point: after the application of the salary increase.. .

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