Page 11 - Signal Summer 2019

• Excessive and continual recruitment at new entrant level is not a credible or viable response to retention issues.
• Extraordinary high levels of new inductee training is diverting resources from other key activities, including operational taskings.
• Officer effective strengths in the Army operational units are down to 55%, 78% in the Naval Service and 77% in the Air Corps.
In the final part of its submission, RACO put forward a range of solutions focusing on increasing basic pay and specific allowances that reward increased work and responsibilities or qualifications to attract and retain all officers.
Why is Turnover so high?
However, one of the most significant retention issues facing all ranks of the DF is not directly related to basic pay or allowances. In a Sector that has mandatory early retirement ages, it is the introduction of the Single Pension Scheme (SPS) Act in 2013 and the consequential removal of the supplementary pension for post 01 Jan 2013 new entrants, that will have the most damaging effect on officer retention.
With the SPS Act coming into force, DoD adopted the position (only formally declared to RACO in 2017) that post-2013 entrants will not receive their total pension benefit on retirement from the workforce “as the SPS does not provide for a supplementary pension” and consequently the pre-existing agreement (CCR.421) to provide a total final superannuation benefit by means of payment of a “supplementary pension” will no longer apply.
All military personnel are forcibly retired well in advance of the State’s payment of the old age pension. Currently this pension is paid at the age of 66 onwards. But this is going out to 68 in 2028. So, following a full career, post-2013 commissioned officers will mandatorily retire, generally at the age of 58 (Lt Col / Comdt) or 60 (Col) on initially 20% of their final salary until they reach the age of the old age pension (68). Then and only then can they can claim the benefit of the old age pension. This brings their final combined (occupation and state) benefit to approximately 38% of their final DF salary. Considerably less when compared to 50% of final salary for pre-2103 state employees.
The result is that Post-2013 new entrants will only receive the occupational element of the designed final pension benefit until the SPC is paid.
Source - Trident Consulting Report Feb 2017 - Analysis of Career Remuneration and Value of Pension Benefits of Defence Forces Commissioned Officers relative to equivalent grade Public Servant.
High Level of Recruitment
RACO is acutely aware that there have been 415 cadet or officer inductees into the DF since Jan 2013. This equates to 26% of the officer body, with another 100 Cadets due to commence training in Sept 2019. This high level of recruitment is facile as it
“The result is that Post-2013 new entrants will only receive the occupational element of the designed final pension benefit until the SPC is paid. “
| AMÁRACH SURVEY |
Numbers leaving Defence Forces ‘putting viability at risk’
Mar 11, 2019 - Defence forces: While recruitment has stepped up, it cannot keep up with departures. Photograph: Alan Betson
Defence Forces to open year-round recruitment over drop in numbers
7 June 2019 - Minister of State Paul Kehoe. Photo: Kyran O’Brien
Reduced pension terms cited as 79% of Defence Forces; officers plan early ‘exodus’
March 12, 2019 - By Sean O’Riordan
Concern for future of Defence Forces
as one-in-five see themselves retiring by 35
March 12, 2019 - By Sean O’Riordan
| SUMMER ‘19 | | 9