At the outset I would like to assure the Deputy that increasing the recruitment numbers and improving retention rates across the Defences Forces are an absolute priority for me as Minister for Defence. I would like to clarify that supplementary pension arrangements do exist for personnel who joined the Permanent Defence Force (PDF) prior to 2013, and these have not been abolished. Therefore I am assuming that the Deputy is referring to the absence of “supplementary pensions” from the provisions of the Single Public Service Pension Scheme.
The occupational pension scheme terms of post-1 January 2013 new entrants to the public service, including the PDF, are governed by the Public Service Pensions (Single Scheme and Other Provisions) Act 2012. All first-time new entrants to pensionable public service employment on, or after, that date are members of the Single Scheme.
Under the 2012 Act, overall statutory responsibility for the Single Scheme pension terms and rules rests with my colleague, the Minister for Public Expenditure, Infrastructure, Public Sector Reform and Digitalisation.
The Single Scheme is a key structural fiscal reform introduced to help significantly reduce the cost of public service pensions in the long term, while at the same time continuing to provide valuable pension benefits for employees. In the general context of that policy objective, the terms and rules of the Single Scheme – which are fundamentally different to previous superannuation public service arrangements – make no provision for the concept or award of supplementary pensions for any new entrants joining any public service group from 1 January 2013 onwards.
No research or analysis on the impact of the absence of the supplementary pension for post 2013 PDF members has been carried out by my Department.
Notwithstanding the distinguishing features of the Single Scheme, members of the PDF in that Scheme retain the minimum pension age of 50 to reflect operational needs, as already applies to new entrant military personnel recruited since April 2004. Importantly, the Single Scheme also retains ‘fast accrual’ pension terms for groups such as the Defence Forces. In the round, Defence Forces pension schemes compare very favourably to the generality of pension arrangements applicable across our public service.
The Deputy will be aware that recruitment and retention are not influenced by a single factor, but rather that there are multiple, interconnected factors, which are responsible for attracting and retaining people in any organisation. In common with other international militaries and while in a buoyant economy, the Defence Forces is facing a challenging environment at present.
Pension entitlements cannot be viewed solely as a recruitment and retention measure; they are in place primarily to support the Defence Forces manpower policy and operational requirements.
As Minister for Defence, my focus has been on stabilising the numbers of personnel and facilitating the capacity for further increases. To this end a number of specific actions in the areas of recruitment and retention have already been delivered including:
• Significant progress on pay in recent years;
• Increase in the mandatory retirement age to 62 years of age for all personnel
• Increase in the maximum recruitment age to 39;
• Increases to Patrol Duty Allowance to incentivise sea-going in the Naval Service;
• The extension of a Naval Service personnel tax credit;
• The extension of private healthcare to all ranks in the Defence Forces;
• Access to free medical, physiotherapy and dental care;
I would like to assure the Deputy that the recruitment and retention of Defence Forces personnel continue to be key priorities for me.