The extended Building Momentum Agreement was agreed in the latter part of 2022 and included the following increases to serving personnel;
1 October 2022 – increase of 1%, or €500, whichever is greater, and
1 March 2023 – increase of 2%.
Under existing Government pension increase policy the benefit of these increases is due to be passed on to relevant qualifying pensioners in pre-existing pension schemes.
[Note: This only applies to pre-existing (otherwise known as pre-2013) pension schemes; pensions awarded under the Single Public Service Pension Scheme are increased in line with Consumer Price Index (CPI) increases, they do not get the benefit of these pay increases, but have been in receipt of an 8.2% CPI increase effective from 1 January 2023.]
With regard to the implementation of the benefit of these increases for relevant DF pensions, I can confirm that work is well underway and that the target is to have the benefit of the two increases implemented by the May payroll.
While this is later than originally indicated, the primary reason for this arises from the decision to implement the Oct 2022 and March 2023 increases together. This was done for practical and operational reasons due to the complexities involved in recalculating the various elements that build up DF pension entitlements, and to avoid or reduce the risk of any potential overpayments arising.
The delay in implementing these increases is mainly due to the complexities involved, as well as other work commitments and priorities. As you will be aware the implementation of pension increases for DF pensions is a significant administrative undertaking due to the unique nature and structure of DF pensions, and the multiplicity of individualised rates and pay codes involved. All of this requires detailed and careful examination with a significant number of cases having to be individually examined and manually adjusted.
In addition to the above, there are ongoing high numbers of PDF personnel who are leaving and/or are enquiring about their entitlements. In particular the calculation of entitlements for personnel who are leaving has to be prioritised ahead of all other tasks, to ensure their pensions come into payment on a timely basis following cessation of their salaries and to avoid them being left without any income.
I can assure you that every effort is being made to implement the increases as soon as possible.
Pensions Financial Administration
Finance Branch
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An Roinn Cosanta / Department of Defence
Pensions Administration Section
Address: Finance Branch, Áras an tSáile, Galway, Renmore, H91 AN2E
Email: pensions.admin@defence.ie / Web: www.defence.ie
Phone number: 091 743 900 / 1890-426444 (3900)