Kevin O'Keeffe
Question:114. Deputy Kevin O'Keeffe asked the Taoiseach and Minister for Defence the reason an Army pension will reduce in the case of a person (details supplied). [4266/19]
View answerTuesday, 29 January 2019
Questions (114)
Written answers
Under the Defence Forces occupational pension scheme applicable to Non-Commissioned Officers, NCOs, and Privates enlisting in the Defence Forces before April 2004, 21 years is the minimum service required for an immediate retirement pension and gratuity, regardless of age. Under this "fast accrual" pension scheme, maximum retirement benefits accrue after 31 years. The 21-year pension, the rate of which varies according to retiring rank and other factors, is payable for the person’s lifetime.
Where qualifying service is more than 21 years, an "additional increment" is payable at a flat rate (generally €8.94 a week) for each year of service in excess of 21 years up to a maximum of 31 years of service. This gives a maximum additional increment of €89.40 weekly. However, under the "pre-April 2004" pension scheme rules, this additional increment ceases to be payable if and when the pensioner reaches the prescribed age for the contributory State Pension, that is, at ages 66 to 68 depending on a person’s date of birth. The question of a person’s entitlement to a State Pension is, of course, a matter for the Department of Employment Affairs and Social Protection.
These arrangements are in accordance with the long established principle of integrating occupational pensions with Social Insurance benefits of employees who are in full-PRSI class. This includes NCOs and Privates who are fully insured for the range of social insurance benefits under the Social Welfare Acts, such as the contributory State Pension.
Integration means that a person’s entitlement to social insurance benefits is taken into account when calculating the rate of his or her occupational pension payable. The State Pension is regarded as part of the overall pension package payable to the individual. The integration principle applies right across the public service and, indeed, in many areas of the private sector as well as in other countries.
It might be noted that the method of integration for "pre-April 2004" military pensioners is more favourable than in other areas of the public service. In the public service generally, integration begins from the time the occupational pension commences payment, for example from the age of 60, when "standard accrual" pensions apply. However, these NCOs or Privates who serve 31 years having joined the Defence Forces between the ages of 18-20, can qualify for maximum retirement benefits payable immediately from ages 49-51. The integration process only begins for them when the State Pension becomes payable, for example, at the age of 66. Furthermore, the maximum personal rate of State Pension payable (€243.30 a week currently if under the age of 80) is considerably more than any reduction that could happen under the Defence Forces pension schemes by virtue of the loss of the additional increment on qualification for the State Pension.