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Defence Forces Pensions

Dáil Éireann Debate, Thursday - 22 March 2018

Thursday, 22 March 2018

Ceisteanna (44, 45)

Robert Troy

Ceist:

44. Deputy Robert Troy asked the Taoiseach and Minister for Defence the reason a person (details supplied) who is in receipt of a pension had their entitlement cut from 31 years to 21 years upon reaching 66 years of age; and if he will make a statement on the matter. [13263/18]

Amharc ar fhreagra

Robert Troy

Ceist:

45. Deputy Robert Troy asked the Taoiseach and Minister for Defence the reason recipients of pensions from his Department have their pension entitlement cut from 31 to 21 years upon reaching 66 years of age; if similar rules exist across other Departments; the rationale for these rules; and if he will make a statement on the matter. [13288/18]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 44 and 45 together.

Under the pre-April 2004 Defence Forces Pension Schemes, in the case of Non-Commissioned Officers (NCOs) and Privates, 21 years is the minimum service required for an immediate retirement pension and gratuity, regardless of age. Under those Schemes, 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 currently) for each year of service in excess of 21 years up to a maximum of 31 years. However, under the pension scheme rules, this additional increment ceases to be payable when the pensioner reaches the qualifying age for the social welfare State Pension Contributory, that is, at age 66 to 68 depending on when the insured person was born. The foregoing pension scheme rules were applied to the person in question when he qualified for the State Pension at age 66 in 2013. 

I am advised that 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.

Integration means that a person’s entitlement to social insurance benefits is taken into account when calculating the rate of occupational pension payable. The State Pension etc. 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.  

I am also advised that the method of integration for these ‘pre-April 2004’ military pensioners is more favourable than in other areas of the public service where standard integration applies. In the public service generally, integration begins from the time the retirement pension starts payment, for example from age 60 where ‘standard pension accrual’ applies. However, these NCOs or Privates who serve 31 years having joined the Defence Forces at age 18/20, can qualify for maximum retirement benefits payable immediately from age 49/51. In their case, the integration process only begins when the State Pension becomes payable to them, for example, at age 66. Furthermore, the maximum personal rate of the State Pension (€238.30 currently) is considerably greater than any reduction that could arise under the pre-April 2004 Defence Forces pension arrangements by virtue of the loss of the additional increment on qualification for the State Pension.

The general issue of integration of retirement pensions in the public service was examined by the Commission on Public Service Pensions. Its Final Report, published in November 2000, was considered and broadly accepted by Government. The Commission accepted that integration is a fundamental component in the public service pension framework and was strongly of the view that it should be continued. It did not make any recommendations that would affect the current integration arrangements applicable to retired NCOs and Privates covered by the pre-April 2004 Defence Forces pensions schemes.

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