Niamh Smyth
Question:82. Deputy Niamh Smyth asked the Minister for Defence if he will review correspondence and address the concerns raised by a person (details supplied); and if he will make a statement on the matter. [5274/22]
View answerWednesday, 2 February 2022
Questions (82)
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 and the pension 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 €9.21 a week currently) for each year of service in excess of 21 years up to a maximum of 31 years’ service. This gives a maximum additional increment of €92.10 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 State Pension (Contributory), that is, currently at age 66.
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 State Pension (Contributory).
Integration means that a person’s entitlement to social insurance benefits is taken into account when calculating the rate of their occupational pension payable. In an integrated pension scheme, the State Pension or similar contributory Social Welfare benefit 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.
The person in question (details supplied) qualified for maximum pension and retirement benefits immediately upon his retirement in 2013 at age 52, having completed more than 31 years service. The integration process will only begin when his state pension becomes payable, currently at age 66.
Furthermore, the maximum personal rate of State Pension payable (€253.30 a week currently if under age 80) is considerably more than any reduction that will happen under the Defence Forces pension schemes by virtue of the loss of the additional increment on qualification for the State Pension.
It might be noted that the method of integration for ‘pre-April 2004’ military pensioners is in fact 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 age 60/65 where ‘standard accrual’ pensions apply in pre-2013 public service schemes