ARCOIreland continues with its efforts to have changes made to the proposed Public Service Pensions (Single Scheme) and Remuneration Bill 2011 to ensure that the pensions of its members who have taken up public service employment are not abated. However, despite the fact that it has made strong representations to Minister Howlin on the matter, both directly and through its contacts, the Minister seems to be reluctant to take on board the very reasonable case that has been made to him.
The Association is of the opinion that the linking of pension increases to the Consumer Price Index could allow the Minister the absolute discretion of delaying or indefinitely postponing any increases, thus effectively reducing the real value of pension entitlements and eventually changing their structure. He also appears unwilling to acknowledge the fact that officers of the Defence Forces are encouraged and indeed obliged to seek out a second career in order to provide for their families. This is not a career choice but a stark reality.
The vast majority of officers must retire on age grounds by their mid-fifties. They do not have the opportunity, like other members of the public service, to serve the 40 years that would exempt them from abatement. The nature of service in the armed forces requires its members to retire early so as to ensure the organisation can fulfil its demanding tasks. The pension system and the early retirement age have been put in place to cater for this. Most officers will still have dependent children to put through college as well as mortgages and other financial commitments to meet at this stage of their lives. Retirement is therefore not an option for them. The idea that most will be able to spend this early retirement in leisure activities is a myth and many who are now facing the stark realities of what is effectively compulsory early retirement can testify to this.
Most public servants can serve to age sixty-five and in some cases much later. For officers however early retirement is compulsory and those who still carry financial responsibilities for children view its approach with little enthusiasm. If officers are to continue to provide for their families they must seek out a second career and must do so while they are still considered employable. The realities and difficulties in trying to find employment by someone in their mid-fifties means there is little point in waiting until then to change careers. Most will have to enter the jobs market by their mid-forties at the latest if they are to hold out any prospect of doing so.
The pension they have earned in the service of their country – and let us be clear in this, members of the Defence Forces earn their pensions while putting their lives on the line when required to do so by their country, at home and overseas – is a reasonable expectation they have when considering their decision to retire. That Mr. Howlin would seek to retrospectively change this reasonable expectation is unjustifiable. Members of ARCOIreland have already taken cuts to their pensions and have seen their tax bill increase significantly. It is difficult to understand why retired officers are being targeted in this manner and from where the Minister is getting his advice to do so.
ARCOIreland is pursuing its case at all levels and encourages members to contact their local and national representatives on this matter along the lines outlined above. Even though this issue may only impact on retired officers who are in public service employment, it demonstrates the dangers to pensions in general and the need to remain vigilant.
