Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 627: To ask the Minister for Defence the reason retired members of the Defence Forces are having their pension increases postponed due to a PDFORA dispute even though they are not members of the representative organisation; and if he will make a statement on the matter. [16693/07]

Willie O'Dea (Limerick East, Fianna Fail)
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In accordance with established public service pensions policy, military pensions are revised in line with relevant increases in the pay of serving personnel. Pensions have been increased on foot of the various general and Benchmarking pay increases awarded to serving personnel under the Sustaining Progress Social Partnership Agreement 2003 — 2006, up to and including the final general round increase of 2.5% effective from 1 June 2006.

The Public Service Pay Agreement that forms part of the new Social Partnership Agreement Towards 2016 provides for phased general pay increases of 3% from 1 December 2006; 2% from 1 June 2007; 2.5% from 1 March 2008; and 2.5% from 1 September 2008. Payment is dependent in each sector on, among other things, satisfactory implementation of the sectoral agenda for modernisation. I understand that, within the established negotiation machinery, the pay and related terms of Towards 2016 were offered to PDFORRA, and that this matter was the subject of detailed discussions with that Association. I also understand that the terms of the Agreement — including a modernisation agenda for the Defence Forces — have recently been accepted following a ballot of the membership of PDFORRA.

The Performance Verification Group have confirmed that modernisation targets have been met and have recommended payment of the increases. The Secretary General of the Department has accepted that recommendation and the administrative arrangements for payment of the pay increases from 1 December 2006 and 1 June 2007 are now being put in place for serving personnel. This would pave the way for corresponding increases in military pensions from the dates mentioned.