Tuesday, 30 November 2010
Department of Defence
Question 302: To ask the Minister for Defence if changes have been made to the gratuity payment made to enlisted personnel in the Defence Forces; if he will clarify that the gratuity is still made in a lump sum after 21 years of service, rather than spread over a number of years; and if he will make a statement on the matter. [44918/10]
I presume the Deputy is referring to the recent increase in the level of pay-related retirement gratuity applicable to certain enlisted personnel who joined the Permanent Defence Force (PDF) before 1 April 2004. This change was formally agreed with PDFORRA in November 2008 under the Conciliation and Arbitration Scheme for members of the PDF. Under the agreed arrangements, the increased retirement gratuity applies to qualified enlisted personnel who were serving on 1 September 2005 and who are discharged on or after that date with 22 or more years' service.
Previously, the retirement gratuity for pre-April 2004 enlisted personnel was 25 weeks' pensionable pay after 21 years' service, rising by increments of two weeks' pay for each subsequent year, up to a maximum of 45 weeks' pay after 31 years' service. Under the recent agreement, the gratuity of 25 weeks' pay after 21 years stands, but it now increases by 4 weeks' pay per year for each subsequent year, to a maximum of 65 weeks' pensionable pay after 31 years' service. I can confirm that the gratuity is paid in a single lump sum following the person's discharge from the PDF. Different superannuation arrangements apply to military personnel recruited to the PDF since April 2004.