Brendan Griffin (Kerry, Fine Gael)
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126. To ask the Taoiseach and Minister for Defence if clarification will be provided on a matter (details supplied); and if he will make a statement on the matter. [11996/23]

Micheál Martin (Cork South Central, Fianna Fail)
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The implementation of pension increases for Defence Forces (DF) pensions is a significant administrative undertaking for the Department and our payroll provider the National Shared Services Office (NSSO) due to the unique nature and structure of DF pensions.

Military pension rates are not based on the usual generic service/salary decimal calculations, but on a multiplicity of flat rates (not directly pay-related) which are a combination of retiring rank, service in rank and overall service, with a range of components driven by paycodes and not by position points within pay scales as applies in other Public Service Bodies.

A detailed and careful examination and oversight are required when implementing pension increases to ensure that pension rates are correct and thereby reduce the risk of potential underpayments or overpayments and the consequent difficulties this could lead to for pensioners.

A significant number of cases need to be individually examined and manually adjusted, such as Family Law ‘Pension Adjustment Order’ cases to ensure that the pension split remains as set out in the relevant Court Order, pension abatement cases where a DF pensioner has re-joined another public organisation, disability pension cases, and a number of other case types.

In recent times there are also higher than normal numbers of PDF personnel leaving who need to be prioritised ahead of all other tasks, to ensure that their pensions come into payment on a timely basis following cessation of their salaries and to avoid them being left without any income.

An extension to “Building Momentum – A New Public Service Agreement 2021-2022” was agreed in mid-October 2022. DPER Circular 19/2022 gave sanction for the application of adjustments to civil service pay in accordance with this agreement, providing for the application of increases in pay of 3% with effect from 2 February 2022 and 1% (or €500 whichever is greater) with effect from 1 October 2022. Sanction from DPER to pass on the benefits of the 2 February 2022 and 1 October 2022 pay increases to the relevant military pensions was received on 4 Nov 2022.

In order to meet an early December 2022 payroll closedown deadline, a decision was taken to prioritise the inclusion of the 2 February 2022 increase of 3%, plus associated arrears, in the December payroll as this amounted to over 90% of the monies due to pensioners. This entailed considerable effort on the part of the Pensions Admin staff, necessitating many additional hours of work to ensure that the deadline was met. Their efforts in this regard were acknowledged and complimented by one of the veteran’s associations. To implement pension increases under such intense time pressure was done as a response to the exceptional circumstances at that time and is not a sustainable approach on an ongoing basis.

For operational reasons the 1 October 2022 increase of 1% or €500 will be applied to pensions in tandem with the 1 March 2023 increase of 2%. Preparatory work has begun on this and both increases will be put into payment as soon as is practicable.