Dáil Éireann Debate, Wednesday - 26 January 2005
1281 Mr. Cregan asked the Minister for Defence the situation in relation to Army pensions; the reason pensions are based on a maximum of 21 years service, in view of the fact that many persons have worked for 30 years or more; if this is different from the norm in other EU countries; the reason Army pensions are not based on the normal public service system; and if he has plans to make pensions more related to service done. [1991/05]
View answerRetirement benefits by way of pension or gratuity are granted to retiring members of the Permanent Defence Force under the Defence Forces pensions schemes. Under those schemes, the minimum service required to qualify for a pension in the case of NCOs and privates is 21 years and maximum pension accrues over a period of 31 years. Pensions are not pay-related as such but are flat rates which vary according to rank and service. In all cases, pensions are payable immediately on retirement regardless of age. Thus, minimum pension may be payable to retiring NCOs and privates from as young as age 39 years and maximum pension from age 49 years. The Public Service Superannuation (Miscellaneous Provisions) Act 2004 was enacted in March 2004 following Government consideration of the final report of the Commission on Public Service Pensions. The Act provides, inter alia, for the introduction of new pension arrangements for military personnel recruited on or after 1 April 2004. The new arrangements will include a minimum pension age of 50 years; the accrual of maximum pension benefits over a period of 30 years; and, in line with public service pension arrangements generally, the calculation of benefits by reference to service and pensionable remuneration on retirement.
Discussions regarding the new pension arrangements are ongoing between my Department and the Defence Forces representative associations under the PDF conciliation and arbitration scheme. In the Civil Service, the local authorities and the health services, maximum pension benefits generally accrue over a period of 40 years and pension benefits are not payable before the age of 60 years in the case of employees already serving on 31 March 2004, and 65 years for those recruited since that date. The higher minimum pension age of 65 was provided for in the Public Service Superannuation (Miscellaneous Provisions) Act 2004. In certain other areas of the public service, such as the Garda Síochána and the fire service, maximum pension benefits accrue over a shorter period of 30 years and lower minimum pension ages are in place. For example, the minimum pension age for members of the Garda Síochána is 50 years for those already serving on 31 March 2004 and 55 for those recruited after that date. In the case of firefighters, the minimum pension age is 55 years regardless of when recruited. Pension arrangements for military personnel vary widely across the EU and it is difficult to make realistic or meaningful comparisons between the superannuation arrangements applicable to the PDF and to the armed forces in other EU states. This is due to such factors as the widely varied and differing standards applicable to the occupational pension arrangements in those countries, national military manpower policy considerations (e.g. recruitment, retention etc.), State social insurance arrangements and the manner in which these integrate with the occupational pension codes.
