Written answers

Wednesday, 24 March 2021

Department of Defence

Defence Forces Remuneration

Photo of John LahartJohn Lahart (Dublin South West, Fianna Fail)
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810. To ask the Taoiseach and Minister for Defence the way in which he plans to bridge the gap of ten years between forced early retirement on age grounds in the Defence Forces and access to the State pension. [15960/21]

Photo of John LahartJohn Lahart (Dublin South West, Fianna Fail)
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811. To ask the Taoiseach and Minister for Defence his plans to extend the supplementary pension provision to post-2013 new entrants to give them the option of a lengthy career in the Defence Forces. [15961/21]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I propose to take Questions Nos. 810 and 811 together.

I take it that the Deputy is referring to the absence of the concept of “supplementary pensions” from the provisions of the Single Public Service Pension Scheme.

The occupational pension scheme terms of post-1 January 2013 new entrants to the public service, including the Permanent Defence Force (PDF), are governed by the Public Service Pensions (Single Scheme and Other Provisions) Act 2012.  All first-time new entrants to pensionable public service employment on or after that date are members of the Single Scheme. 

The Single Scheme is a key structural fiscal reform introduced to help significantly reduce the cost of public service pensions in the long term, while at the same time continuing to provide valuable pension benefits for employees. In the general context of that policy objective, the terms and rules of the Single Scheme – which are fundamentally different to previous superannuation public service arrangements – make no provision for the concept or award of supplementary pensions for any new entrants joining any public service group from 1 January 2013 onwards.

Notwithstanding the distinguishing features of the Single Scheme, members of the PDF in that Scheme retain the minimum pension age of 50 to reflect operational needs, as already applies to new entrant military personnel recruited since April 2004. Importantly, the Single Scheme also retains ‘fast accrual’ pension terms for groups such as the Defence Forces.

Under the 2012 Act, overall statutory responsibility for the Single Scheme pension terms and rules rests with my colleague, the Minister for Public Expenditure and Reform.  In that regard, the absence from the Single Scheme of provision for the concept of supplementary pensions for any new entrants joining any public service group – including the PDF – on or after 1st January 2013, has previously been confirmed by the Official Side, which includes the Department of Public Expenditure and Reform, to the Defence Forces Representative Associations. 

Access to the State Pension is a matter for my colleague the Minister for Social Protection.   As the Deputy will be aware, the Government have established a Commission on Pensions under a Programme for Government commitment. The Commission’s remit is to examine sustainability and eligibility issues with the State Pension and the Social Insurance Fund and also consider the issue of retirement ages in employment contracts and consider how the pension system can further accommodate carers.

In accordance with its terms of reference, the Commission will submit a report on its work, findings, options and recommendations to the Minister for Social Protection by 30 June 2021.

I am also advised that the Public Service Pay Commission considered certain aspects of military superannuation provisions, which were submitted as an influencing factor on military recruitment and/or retention outcomes. The Commission’s report on recruitment and retention in the Permanent Defence Force which was accepted in full by Government in July 2019 considered the concerns expressed by the military Representative Associations in relation to various aspects of pension scheme provisions for the Defence Forces. The Commission made no recommendations advocating any improvements to the pension scheme terms of the PDF.

However, the PSPC report did recommend a range of measures relating to pay and non-pay aspects that would result in immediate and future benefits for members of the PDF.  The High Level Plan- "Strengthening Our Defence Forces" provides for actions or projects to be undertaken to deliver on the PSCP recommendations. A project to consider options to tackle barriers to extended participation in the PDF (including the possibility of extending retirement ages for members of the PDF) is underway. This project is divided into two phases. The first phase, focusing on reviewing mandatory retirement ages for officers and the second phase to review contracts of service for enlisted personnel. As this review is currently underway, it would be inappropriate to pre-empt any recommendations that may arise regarding mandatory retirement ages in the PDF.

Photo of John LahartJohn Lahart (Dublin South West, Fianna Fail)
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812. To ask the Taoiseach and Minister for Defence the status of the implementation of the strengthening of the Defence Forces high-level implementation plan. [15962/21]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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The Government’s high level plan “Strengthening Our Defence Forces – Phase 1” sets out a range of actions to be undertaken in the short, medium and longer term. The plan is complemented by a range of other HR actions which were already underway.

The immediate pay measures set out in the plan i.e. an increase in Military Service Allowance, the reversal of 10% cuts to allowances and the restoration of weekend premium rates for overtime were implemented immediately upon their acceptance by the PDF Representative Associations. A service commitment scheme for pilots was also re-introduced, with very positive uptake.

The remaining projects in the plan contain both pay and non-pay measures. The pay related projects include a review of pay structures, consideration of incentivised long service arrangements and a review of technical pay (grade 2-6) arrangements, and are part of wider Public Sector Pay considerations.

The table below summarises the current status for each of the 15 projects included in the plan:

Project Title Status
V1 Review of Pay Structures This project is being considered in light of the current Public Sector Pay Agreement.
V2 Increase MSA Project completed – Payments made in Oct/Nov 2019.
V3 Restore Allowances cut under Haddington Road Agreement Project completed – Payments made in Oct/Nov 2019.
V4 Restore weekend premium rates Project completed – Payments made in Oct/Nov 2019.
R1 Restore Pilot Service Commitment Scheme Project completed – Scheme Promulgated November 2019.
R2 Tech 2 - 6 arrangements 2 Reports completed in October 2019 and January 2020. These Reports are being considered in light of the current Public Sector Pay Agreement.
R3 Incentivised long service arrangements - NCO and Officer ranks Report completed - October 2019. This project is  being considered in light of the current Public Sector Pay agreement.
R4 Barriers to extended participation in the PDF Project divided into 2 Phases. Phase 1 – Review of Mandatory Retirement Ages for Officers - Draft Report completed and a number of issues under discussion with DPER. Phase 2 – Review of Contracts of Service for Enlisted Personnel is progressing.
R5 Bespoke Management training for leaders and managers Project completed - July 2020.
R6 Professional Military Education [PME] Strategy Project completed - March 2021.
R7 Mental Health and Wellbeing Strategy Project completed - December 2020.
R8 Non-Pay Retention Measures in the PDF Project completed - October 2020.
R9 Additional specialist posts for high turnover/long lead in appointments. This Report is near completion.
A1 Review of Recruitment methods for PDF This Report is near completion.
A2 Workforce Planning This project is being progressed through the Strategic Human Resources Group as embedding and monitoring workforce planning in the Defence Forces will be an ongoing task.

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