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figures are based on current salary value with future salary and pension inflation model of calculation)
The total value of remuneration (pay & pension) for a Defence Force Officer forced to retire at 58 is 10% (pre-2013 final salary based) to 19% less (post 2013 Single Pension Scheme – career average salary based) than that of an equivalent grade public servant retiring at 68.
Where RACO had expected the Pay Talks to reflect on the findings of the PSPC, the result was disappointing to Members. Subsequent Pay Talks proposals and decisions by Government (DPER) resulted in pay agreement proposals in which uniformed services were targeted with additional costs to their superannuation arrangements while, in addition, failing to make any practical proposals specific to sectors with clearly identified retention challenges. These talks essentially failed to deliver any positive influence on ongoing organisation retention issues that are clearly acknowledged both by the PSPC, Research Findings (University of Limerick Focus Group report 2017) and Military Management.
RACO’s submission also included claims for;
• Increase Military Service Alllowance
• Review of Flying Pay and the Re-instatement of the Service
Commitment Scheme
• Review and increase of Patrol Duty Allowance
• Increase in the rate of Explosive Ordnance Disposal (EOD) Duty Allowance • Re-instatement of Specialised Instructor Allowance
• Re-instatement of Fixed-Period-Promotion provisions
• Claim in Response to Lifetime Community Ratings Levies
• Re-instatement of RDF Allowances
2.4 PROPOSED PUBLIC SERVICE STABILITY AGREEMENT 2018 -20
Where the overall proposal will have a positive impact on overall remuneration of our Members over the three years, the range and extent of “side deals” results in a monetary disadvantage to those serving in the Defence Forces relative to other public servants who are union members affiliated to ICTU.
Members see the new side agreements as similar to measures which emerged as ‘chairman’s notes’ shortly after the conclusion of the LRA in 2015. These ‘chairman’s notes’ identified a range of other side-deals with particular sectors who were affiliated to ICTU. In addition to a range of additional deals secured by those unions and associations who either took industrial action, threatened industrial action or whose sectoral management negotiated, these deals added significant benefits to accept the LRA and undoubtedly secured greater pay advantages relative to those serving in the Defence Forces. Most interesting is that the forums through which these side deals were negotiated by the unions are forums to which Government deny the Defence Forces access.
Where, during the pay talks, RACO highlighted to the Department of Defence (DOD) and the DPER that representative association status regarding industrial action should not be used as a measure to ignore our concerns or disadvantage Defence Force members with respect to remuneration (pay and pensions), the result of the pay talks negotiations once again has failed our Members relative to those represented by unions affiliated to ICTU.
Where our Members clearly understand and respect the position of the Minister and the Defence Forces in the context of industrial action, this continued loyalty and commitment to military service should not place our members at a disadvantage in terms and conditions of service. This loyalty and commitment to service by Defence Force members has now a measurable quantum. A review of the range and quantum of ‘monetary commitments’ and awards, sanctioned by Government to other sectors over the lifetime of the current LRA, is a tangible measure of the failures of our Industrial Relations process.
2.5 FAST ACCRUAL SUPERANNUATION SCHEMES
The PSPC reflected on overall superannuation benefits to include not only employer contributions but also the employee benefits with respect to overall pay and pension pay. The 2017 PSPC Report clearly identified that those “fast accrual” categories are underpinned by Government Policy forcing “mandatory retirement” at ages earlier than those Public Servants on “standard accrual” models of superannuation.
Where RACO and other Uniformed Fast Accrual Category Associations made submissions on the total superannuation benefits (supported by Independent Actuarial
Biennial Delegate Conference 2017
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GENERAL SECRETARY’S REPORT