Written answers

Thursday, 29 November 2007

Department of Defence

Defence Forces Retirement Scheme

5:00 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 145: To ask the Minister for Defence if his attention has been drawn to the fact that under the early retirement options for Army officers, the pension being paid is reduced by the value of the contributory old age pension despite the fact that no social welfare pension is payable until age 65; if this was the intention of the original scheme established in 1995; if this implication was explained to officers at the time; and if he will make a statement on the matter. [31809/07]

Photo of Willie O'DeaWillie O'Dea (Limerick East, Fianna Fail)
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Officers who joined the Defence Forces on or after the 6th April 1995 are, like other public servants appointed since then, subject to full PRSI and so are entitled to the full range of State Social Insurance benefits including the Old Age Contributory Pension, nowadays known as the State Pension Contributory. Consequently, their occupational pensions are subject to a process — known as "integration" — whereby the occupational pension arrangements take account of entitlement to Social Insurance benefits. Integration is a standard feature of public service pension schemes applicable to employees in full PRSI class and had applied for many years to certain public service groups who, prior to April 1995, were subject to full PRSI. Integration does not apply to retirement gratuities.

Integration begins from the time the occupational pension comes into payment and operates on the assumption that a Social Insurance benefit is, in fact, payable. However, except in cases of ill-health early retirement, Social Insurance benefits may actually not be payable until age 65. Under public service pension arrangements, a supplementary pension may be payable in certain circumstances on retirement prior to age 65 in order to make up the shortfall in total pension. The supplementary pension is not payable where a former public servant in receipt of an integrated pension is employed subsequent to retirement in any capacity which involves a Social Insurance contribution.

Certain aspects of the integration arrangements as they affect officers have been raised with my Department by the Representative Association of Commissioned Officers. Such matters are appropriate to be dealt with under the Conciliation and Arbitration Scheme for members of the PDF. The Deputy will appreciate that, as discussions under the C&A scheme are confidential to the parties involved, it would not be appropriate for me to comment further on the matter.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 146: To ask the Minister for Defence if Army officers are eligible to pay AVCs or pay into PRSAs; the reason these options do not apply; and when he expects to introduce the SPEARS system. [31811/07]

Photo of Willie O'DeaWillie O'Dea (Limerick East, Fianna Fail)
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This Question was answered today by the Tánaiste and Minister for Finance, reference Question No. 48.

Photo of P J SheehanP J Sheehan (Cork South West, Fine Gael)
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Question 147: To ask the Minister for Defence if he will review the appeal of a person (details supplied) who has 19 years service in the Defence Forces with a view to continuing their service; the number of years they would have to serve to receive a full pension; and if he will make a statement on the matter. [31837/07]

Photo of Willie O'DeaWillie O'Dea (Limerick East, Fianna Fail)
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I have been advised by the military authorities that an appeal has been made to the relevant military authority in this matter on the 21 November 2007 and, as a consequence, it would not be appropriate for me to comment at this stage.

The minimum service required for a Private to qualify for a pension under the Defence Forces Pensions Scheme is 21 years, or 12 years if discharged "Below Required Medical Standards". Maximum pension and gratuity are payable on completion of 31 years, regardless of age.

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