Aindrias Moynihan (Cork North West, Fianna Fail)
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18. To ask the Taoiseach and Minister for Defence if all Defence Force pensioners are included in the next payment tranche of 2% due in March 2023; and if he will make a statement on the matter. [14095/23]

Micheál Martin (Cork South Central, Fianna Fail)
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The benefit of the 2% pay increase effective from 1 March 2023 under the extension of the Building Momentum Agreement 2022-2023 is applicable to the vast majority of Defence Forces pensioners. Currently there are in excess of 13,100 Defence Forces pensioners in receipt of payments.

The existing government pension policy, as it applies to the Defence Forces, is as follows:

For Defence Forces pensioners who are members of the pre-2013 pension schemes, the principle of maintaining parity with pay has been agreed up to the end of 2023. The concept of pay parity means that any and all benefits of general round pay increases granted to serving Defence Forces staff will be passed on, as appropriate, to relevant Defence Forces pensioners.This policy of maintaining pensions pay parity will apply up to the end of 2023, after which the Government will consider its approach for future pension increase policy.

The Single Public Service Pension Scheme applies, in general, to staff who have joined the public service from 1 January 2013 onwards. Defence Forces pensioners who are members of the Single Pension Scheme have their pensions increased on the basis of the Consumer Price Index. Therefore such pensions will not be adjusted with reference to the 1 March 2023 pay increase. Instead a CPI based increase of 8.2%, effective from 1 January 2023, has already been applied to Single Pension Scheme pensions that are in payment. Currently there are only six such Defence Forces pensions under this Single Pension Scheme, as it is a relatively recent scheme.

Defence Forces pensioners who are in receipt of disability pensions will benefit from these increases as well.

I can confirm that preparatory work is well underway to implement the benefit of the 1 March 2023 increase as soon as practicable.

The implementation of pension increases for Defence Forces pensions is a significant administrative undertaking for my Department and its payroll provider, the National Shared Services Office, due to the unique nature and structure of Defence Forces 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 pay-codes, and not by position points within pay scales as applies in other Public Service Bodies.

In addition to the above, it is important to highlight that there are ongoing numbers of PDF personnel retiring 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.

Fergus O'Dowd (Louth, Fine Gael)
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19. To ask the Taoiseach and Minister for Defence the latest engagement he has had with the Defences Forces in terms of pay improvements. [13921/23]

Micheál Martin (Cork South Central, Fianna Fail)
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I last met both Permanent Defence Forces Representative Associations, RACO and PDFORRA, on 13th February this year. At this meeting, we had discussions on a number of key issues, including on pay and conditions matters for Defence Forces personnel.

There have been a number of key recent improvements in pay for Defence Forces personnel, which I will take this opportunity to outline to the House.

With its approval of the Report of the Commission on the Defence Forces in 2022, the Government committed to a range of measures which have (and will) positively impact pay and conditions for personnel.My Department has already implemented two of the pay-related recommendations of the Report; namely,

- All personnel of Private 3 Star/Able Seaman rank are paid the full rate of Military Service Allowance (MSA) applicable to the rank, and

- The requirement for that cohort to ‘mark time’ for the first three years at the rank has been removed.

These measures resulted in the pay rates (including MSA) for Private 3 Star and Able Seamen, in their first three years of service, starting at €37,147 in Year 1, rising to €38,544 in Year 2, and €39,832 in Year 3.

For newly recruited Officers, starting Pay, including MSA, amounts to:

- €46,406 for a graduate cadet on commissioning, and

- €41,123 for a school leaver cadet on commissioning.

As with the enlisted, there is also scope for further income from duty allowances. There are also opportunities for frequent career advancement to higher ranks & to qualify for additional allowances.

These compare very well to starting rates of pay across the public service, I'm sure you will agree.

My Department also delivered the Commission recommendation on temporary associate membership for the Representative Associations with the Irish Congress of Trade Unions (ICTU) for the purpose of participation in public sector pay negotiations in mid-2020. This allowed RACO and PDFORRA, for the first time, to take part in discussions on the extension to the Building Momentum Pay Agreement under the ICTU umbrella.

Aside from these improvements, and specifically in terms of pay, the Defence Forces are paid increases in pay and allowances in line with Public Service pay agreements.

The most recent agreement, the extension to ‘Building Momentum’, provided for increases in pay and allowances of 6.5% to members of the Defence Forces in 2022 and 2023. This includes:

- 3%, backdated to 2nd Feb 2022

- 2 % on 1st March 2023

- 1.5% or €750, whichever is the greater, on 1st October 2023.

Pensionable allowances in the nature of pay also benefit from this.

The 3% increase, back-dated to February 2022, was paid to all serving members of the Defence Forces by 30th November 2022 last. The remaining Building Momentum 1% increase, due on October 2022, was also paid by this date.

I am also pleased to inform the Deputy that the latest increase of 2%, due on 1st March last, has been paid to Enlisted personnel, while Officers will see their increases on 31st March.

Finally, and in addition to general round pay increases arising out of ongoing national pay agreements, members of the Permanent Defence Forces have also benefited from the implementation of increases in Defence Forces duty allowances, as recommended by the Public Service Pay Commission in 2019. It is important also to note that for those Defence Force personnel who have specialist appointments, based on training or qualifications, there is a range of additional allowances available to them. For example, members of the Army Ranger Wing receive an allowance of €225 per week, on top of their salary.

David Stanton (Cork East, Fine Gael)
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20. To ask the Taoiseach and Minister for Defence the actions that have been taken by his Department to support and encourage the retention of personnel in the Defence Forces; and if he will make a statement on the matter. [14191/23]

Fergus O'Dowd (Louth, Fine Gael)
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22. To ask the Taoiseach and Minister for Defence the progress made by the Government in terms of reaching the number of Defence Forces personnel targeted. [13922/23]

Micheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 20 and 22 together.

The military authorities advise that as at the end of February 2023, the number of personnel in the Defence Forces stood at 7,917, some 83% of the authorised strength of 9,500.

The Defence Forces are developing strategies to achieve increased recruitment and to address the current shortfall in numbers. The longer-term target is to realise a Defence Forces strength of 11,500 by 2028, incorporating an appropriate civilian component, in line with the recommendation of the report of the Commission on the Defence Forces. However, in the short-term the focus is on stabilising current numbers.

As I have outlined in an earlier response, there are a number of recruitment and retention initiatives currently underway. There is ongoing general service and direct entry recruitment and the re-entry schemes remain open. A specific general service stream is also now open for Air Corps recruits. The 'Be More' recruitment campaign, launched last year, highlights the career opportunities available in the Defence Forces and also the wider benefits of membership.

Retention measures include service commitment schemes in the Air Corps and Naval Service, and the sea-going naval personnel tax credit. Agreement has also been secured to allow for an extension in service limits for Privates and Corporals and on an interim arrangement, for Sergeants.

There has been significant progress on pay as a result of increases arising from the Public Service Pay Commission report and from recent pay agreements. The early implementation of some of the recommendations of the Commission on the Defence Forces report, have also had a substantial impact on starting pay rates in the Defence Forces.

Current pay rates including Military Service Allowances for the ranks of Private 3 Star/Able Seaman, in their first three years of service start at €37,147 in Year 1, rising to €38,544 in Year 2, and €39,832in Year 3 of service. A graduate cadet on commissioning starts on a payscale, which includes Military Service Allowance that ranges from €46,406 to €54,696 depending on the type of appointment. A school leaver cadet starts at €41,123 whilst in full-time third level education. These compare very favourably with the starting pay with other areas of the public service.

As noted, my immediate focus is on stabilising the numbers of personnel and thereafter increasing strength to meet the agreed level of ambition arising from the report of the Commission on the Defence Forces.