Oireachtas Joint and Select Committees

Wednesday, 25 November 2015

Select Committee on Justice, Defence and Equality

Estimates for Public Services 2015
Vote 35 - Army Pensions (Supplementary)

2:30 pm

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael) | Oireachtas source

Yes. As indicated previously to the committee, the ongoing funding of Vote 35 will remain a considerable challenge in future years. The Department of Public Expenditure and Reform is aware of the position, but there are particular difficulties unique to the Defence Forces in predicting retirement and turnover patterns which can contribute to greater than expected expenditure in a given year. This is due, among other things, to the early payment of pension benefits immediately on retirement after relatively short periods of service, regardless of age, and the fact that the timing of a person's departure is largely of his or her own personal choice. For example, in the run-up to 29 February 2012, for every one NCO or private who retired with a pension on age grounds, 22 left voluntarily with pension benefits. The Defence Forces are quite different from other areas because when one retires, almost regardless of age, one accesses a pension. There are a huge number who leave before they are due to retire, for whatever reason. It is, therefore, more difficult to predict. As a career in the Defence Forces is tough, one can understand why that happens.

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