Page 43 - Raco 2017

GENERAL SECRETARY’S REPORT
43
Biennial Delegate Conference 2017
Reports) to the PSPC clearly identifying the disadvantage that mandatory early retirement has on an employee’s total benefits, the result of the Pay Talk Negotiations was Governments additional charge of €575 per annum on Fast Accrual Categories relative to those on Standard Accrual.
DPER’s decision in this context is considered both contradictory and punitive on those who are forced to retire from the workforce at ages which precludes optimising total benefits equivalent to those on standard accrual schemes. Where retirement ages are decided by Government Policy, the placing of additional costs on these categories appears questionable to Members.
2.6 MANDATORY RETIREMENT AGES - PAYMENT OF STATE PENSION CONTRIBUTORY
The proposed new Pay Agreement references the establishment in 2016 of an Interdepartmental Working Group (WG) to examine the Mandatory Retirement Ages of Public Servants (Para 6.4). This Interdepartmental Working Group, chaired by the Department of Public Expenditure and Reform (DPER), engaged with Public Service employers since 2016.
The WG was tasked to review the current statutory and operational considerations giving rise to barriers to extended participation in the public service workforce up to and including the current and planned age of entitlement to the Contributory State Pension. This review is expected to be completed shortly Q2 2017.
During the Pay Talks, RACO questioned DPER and DOD at length on their engagement with the WG. RACO raised several significant questions with respect to the ongoing deliberations of the WG and the position of the DOD and DPER on the matter as it impacts on the Defence Sector regarding pre-existing agreements which RACO view as analogous to the WG review. DPER informed RACO that the WG saw it appropriate for the Minister for Defence to address the unique circumstances of the Defence Forces. DOD were unable to qualify what the position of the Minister for Defence is on the matter.
Prior to the introduction of the Single Pension Scheme in 2012, CCR 421 - Annex ‘C’ is the agreement between the DOD and RACO providing for supplementary pensions for officers on the full rate of PRSI (Class A). This agreement was the result of considered negotiations under the Defence Sector Pensions Sub Committee of Council in 2009. The agreement was based on a report of the Conciliation & Arbitration Pensions Sub- Committee regarding a claim for the automatic payment of a supplementary pension to all officers who joined the Defence Forces after 05 April 1995 and who retire on age grounds before the age of 65 (previous age of State Pension Eligibility).
In summary, Para.15, Annex ‘C’ of CCR 421 notes DOD acknowledgement that the compulsory early retirement regime applicable to military officers sets their occupation apart from occupations in other areas of the public service. DOD undertook to recognise this distinguishing factor in the administration of the supplementary pension arrangements and thereby pay the value of the SPC by a supplementary pension where meeting the required criteria. In particular, applications for supplementary pensions from officers who retire compulsorily on age grounds at age 58 or higher and who decide not to take up other employment will be given “special and sympathetic” consideration.
Para, 17, of Annex ‘C’, notes DOD position that any future changes of general application in the public service that may be made to the existing terms and conditions governing the grant of supplementary pensions will, of course, be extended to relevant members of the PDF. Similarly, the Department Side’s approach would fall to be reviewed (and modified, if necessary) in the light of future developments generally e.g. regarding compulsory retirement ages and/or relevant changes in the qualifying conditions for social insurance benefits.
From 1995, Defence Force Commissioned Officers pay a PRSI Class A contribution and their pensions are fully integrated with the social welfare system. Such Defence Force officers, where fulfilling the agreed criteria, are eligible for a supplementary pension provided for by agreement in 2009 in CCR 421 (Annex C). The retirement age for the rank of Commandant was increased from 56 to 58 to facilitate this arrangement for PRSI Class A officers.
Noting the DOD and DPER’s position on the Working Group’s deliberations and in consideration of the future implications of superannuation arrangements for Post 01 January 2013 Entrants, the National Executive has decided not to recommend acceptance of the Proposed Public Service Stability Agreement 2018-2020 pending further considered consultation with the Minister for Defence with respect to the Defence Forces unique conditions of service as summarised by the Official Side in Annex ‘C’, CCR 421.