Pay Scale

Pay and Pensions Terms

IMPORTANT NOTICE FOR NEW ENTRANTS JOINING THE PERMANENT DEFENCE FORCE FROM 1 JANUARY 2011:

 

  1. All those joining the public service from 1 January 2011 have reduced pay scales, while their actual date of recruitment will determine their specific occupational pension terms.
  2. The rates of pay and allowances may be adjusted from time to time in line with Government pay policy. In this regard, the Government approved a 10% reduction in the salary (pay) scales and fixed allowances for new entrants recruited to traditional entry grades in the public service with effect from 1 January 2011. This change applies, as appropriate, to relevant new entrants joining the public service on or after that date, including the Permanent Defence Force (PDF). The Government has also decided that starting pay on recruitment from open competitions for all posts within the public service will now be at the minimum of the relevant pay scale.
  3. It should be noted that the payment (including the rate of payment) of allowances paid to PDF personnel are subject to review and adjustment on an ongoing basis in accordance with changes applicable on foot of Government policy. Furthermore, allowances paid to PDF personnel are currently part of a general review of allowances in the public service and may be subject to recommendations that might arise from that review process.
  4. Under the Public Service Superannuation (Miscellaneous Provisions) Act 2004, revised occupational pension arrangements apply to military personnel who join the PDF as new entrants on or after 1 April 2004. Their pension scheme provides for a ‘minimum pension age’ of 50. This means that pension and gratuity (lump sum) is not normally payable immediately on discharge / retirement unless the person serves to age 50. Maximum retirement benefits accrue over 30 years. Where leaving the PDF before age 50, benefits are not payable immediately but are ‘preserved’ and payable from age 60. As in other existing public service pension schemes generally, benefits are based on total pensionable service and pensionable pay at discharge/retirement date (known as a defined benefit final salary scheme) and are subject to integration with the Social Insurance system.
  5. However, as part of ongoing pension reforms, the Government has decided to introduce a new single pension scheme for all those joining the public service in future, including the PDF. This new defined benefit scheme applies to first-time new entrants who join the public service on of after 1 January 2013. It also applies to former public servants returning to the public service from that date, after a break of more than 26 weeks or other than under the same contract of employment. Under the new Single Scheme, retirement benefits will be based on ‘career average earnings’ rather than on ‘final pay’. The current minimum pension age of 50 for military personnel will continue to apply, that is, pension and gratuity will not normally be payable immediately on discharge / retirement unless the person serves to age 50. Where leaving the PDF before age 50, benefits under the Single Scheme will be preserved and generally payable in line with, and linked to, future social welfare State Pension age (66 rising to 68). Retirement benefits will be contributory; and pension will be subject to integration with the Social Insurance system. The full details are set out in the Public Service (Single Pension Scheme and Other Provisions) Act 2012.
  6. Therefore, the existing pension scheme terms outlined at 4 above apply to persons who join the PDF before the new single public service pension scheme commences.
  7. Where joining the PDF on or after 1 January 2013, the arrangements at 5 above will apply (subject to the provisions of the 2012 Act).
  8. All new entrants to the PDF must pay appropriate employee pension contributions from pay towards their superannuation benefits during service. They are also liable to pay the public service Pension-Related Deduction (known as the ‘pension levy’).New entrants to the public service, including those joining the PDF, are ordinarily insurable for full PRSI. On that basis, their occupational (or spouse's) pension is subject to integration with the State Social Insurance system in accordance with standard public service arrangements.
  9. New entrants to the public service, including those joining the PDF, are ordinarily insurable for full PRSI. On that basis, their occupational (or spouse's) pension is subject to integration with the State Social Insurance system in accordance with standard public service arrangements.

Additional Notes:

Integration is a standard feature of public service occupational pension schemes. It means that a person’s entitlement to the range of Social Insurance benefits (including the State Pension Contributory) is taken into account when calculating the amount of occupational pension payable. The State Pension etc. is regarded as part of the overall pension package payable to the individual. Integration results in a lower rate of occupational pension than would otherwise be the case. Integration applies to pension and contributions, but not to gratuity.

All public servants who are in pensionable employment — including members of the PDF — are liable to pay a Pension-Related Deduction (PRD) regardless of the date they join the public service. Commonly known as the ‘pension levy’, this was introduced by Government as part of a package of emergency financial measures. The PRD is separate from the standard employee pension contributions and no additional superannuation benefits are earned as a result of the deduction.

January 2013

This Notice is subject to revision as required.

Rates of Pay personnel recruited post 1 January 2013 Personal pension Contribution (PPC)

Pay Scale wef 01/01/13
Rank Point Rate
Private, Grade 1/Seaman/Airman Third Classe €351.61
Private, 2 Star/Seaman/Airman Second Class €378.94
Private, 3 Star/Seaman, First Class
0 - 3 Years Service 1 €378.94
over 3 Years Service 2 €405.25
over 4 Years Service 3 €405.25
over 5 Years Service 4 €431.57
over 6 Years Service 5 €431.57
6 €463.14
7 €494.72
8 €524.64
9 €524.64
Military Service Allowance - Weekly
Privates with fewer than 3 years' service €37.41
3rd and 4th years €65.00
5th year and above €103.89

 

 

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