Dáil Éireann Debate, Tuesday - 12 February 2019
119. Deputy Jack Chambers asked the Taoiseach and Minister for Defence the reason a retired member of the Defence Forces (details supplied) has not received an increase in pension entitlement for the past decade; when a pension will be received by retired Army ranks; and if he will make a statement on the matter. [6743/19]
Amharc ar fhreagraThe Public Service Stability Agreement (PSSA) 2018-2020 sets out the policy on public service pension increases as adopted by Government for the duration of that agreement to end-2020, whereby some public service pensions qualify to be increased on foot of basic pay increases due under the terms of the PSSA.
Due to the 2010 public service pay cuts and the ‘grace period’ protections associated with those reductions, former public servants who retired before 1 March 2012 – such as the person in question – have their pensions based on higher ‘pre-cut’ salary levels. This has led to the situation whereby those who retired since 1 March 2012, on a like-for-like basis, generally receive lower pensions than their counterparts who retired before them.
Under Section 6.2 of the PSSA, a guiding principle of current pension increase policy is the need to adopt an equitable approach. This means that those who retired since 1 March 2012 must first ‘catch up’ with their counterparts – such as the person in question – who retired before them on higher pension rates.
There is an ongoing administrative exercise over the course of the PSSA to review and adjust public service pension rates in line with current policy. As regards military pensioners who retired since 1 March 2012, I am advised that, generally speaking, the benefit of the recent pay increases including the 1% from 1 January 2018 and 1% from 1 October 2018 under the PSSA has now been passed on (with arrears) to those post-1 March 2012 retirees, including any associated dependants. The next scheduled pay increase for public servants including members of the Defence Forces is 1.75% from 1 September 2019.
The pension increase policy out to end-2020 also provides that the benefit of the PSSA pay increases will be passed on to qualifying pre-March 2012 pensioners, but only where the pensions of those who retired since March 2012 with analogous retiring rank, pensionable service etc. have moved ahead of pre-March 2012 retirees. In that context, military pension rates will continue to be monitored and reviewed by my Department according as each pay increase is being implemented.
However, as matters currently stand, this person’s pension remains ahead of his counterparts who have the same retiring rank and pensionable service etc., and who retired from the Defence Forces since 1 March 2012.
