I move that the Bill be now read a Second Time. The Bill provides for the increase of certain pensions payable in respect of public service. It adheres to the general scheme which I outlined to the Dáil on the 19th July last when token Supplementary Estimates for pension increases were before the House. The Bill authorises increases in certain pensions of less than £450 a year payable in respect of public service which have been calculated by reference to remuneration below the levels obtaining after the general increase in remuneration which took place towards the end of 1946. The pensions covered are those which were granted following retirement in the normal course and were being paid on the 1st April last to teachers, police, civil servants, widows and children of Ministers and Parliamentary Secretaries, local and harbour authority employees and certain Electricity Supply Board employees whose pensions are at present restricted under the Emergency Powers (No. 244) Order, 1942.
In general the Bill provides that a pension will not be increased to a greater amount than would be payable to or in respect of a person of equivalent status and service who retired after the general increases in remuneration in 1946. Subject to this proviso the increases authorised in cases where no increase has previously been given are as follows:—
Where the pension does not exceed £100 a year, 50 per cent. of the pension; where the pension exceeds £100 but does not exceed £150 a year, 40 per cent. of the pension, but not less than £50; where the pension exceeds £150 but does not exceed £450 a year, 30 per cent. of the pension, but not less than £60, provided that no pension will be increased to more than £450 a year. Where a pension includes an element attributable to the payment of emergency bonus that element is to be neglected in calculating the increase, and ceases to be payable once the pension is increased. Increases are payable with effect from the 1st April 1949, or the date of commencement of the pension if that is later.
The pensions of civil servants and Gardaí Síochána who retired in the period from the 1st July, 1940, to the 31st October, 1946, when their salaries were stabilised, have already been increased under previous legislation. In most cases where retirement took place before the 1st July, 1943, the increased pensions are less than would be obtained by increasing the original pensions in accordance with this Bill. In such cases increases in accordance with this Bill are being given in lieu of the previous increase, with effect from the 1st April, 1949.
I have considered carefully the question of providing for a minimum increase, as was suggested when the Supplementary Estimates for pension increases were being discussed by the Dáil. In view of the very substantial percentage increase being given in the smaller pensions, I do not feel called upon to do so, particularly as any provision for a minimum increase would be likely to be applicable to a considerable number of pensioners, and would result in many of those pensioners receiving more than if they retired at a later date and had their pensions calculated on post-war rates of pay.
The total cost to State funds of the increases provided under the Bill is estimated at £200,000 a year, of which £119,000 will go to national teachers and £44,000 to civil servants. The balance of £37,000 will be divided among members of the Garda Síochána and Dublin Metropolitan Police, certain resigned and dismissed members of the Royal Irish Constabulary and a group of others. The total number of pensions payable from State funds which are being increased under the Bill is approximately 4,600.
Provision is not made in the Bill for the increase of pensions payable to the widows of Gardaí Síochána, or of resigned and dismissed members of the Royal Irish Constabulary, or of members of the Dublin Metropolitan Police who adopted the terms of the Dublin Metropolitan Police (Pensions) Order, 1922, and who retired after the amalgamation of that force with the Garda Síochána in 1925. It is considered preferable to provide for these increases by way of amendment to the various Orders regulating the pensions, in order that the increases may apply to pensions awarded in future as well as to those already being paid. Approximately 500 widows' pensions already in course of payment will be increased in this manner and 600 allowances to children of deceased members of the Garda Síochána and Dublin Metropolitan Police.
Provision is not being made for any increase in the compensation awarded under Article 10 of the Treaty to former civil servants or members of the Dublin Metropolitan Police. These persons have enjoyed for many years the benefit of the enhanced compensation terms provided by Article 10. In many cases, the compensation payable is higher than the maximum amount payable under this Bill.
Increases to pensioners of local authorities and harbour authorities will be granted by the authority concerned, subject to the sanction of the responsible Minister. The increases will be on a basis similar to that applicable to civil servants.
While the House will not wish me to examine the provisions of the Bill in detail at this stage, I should like to indicate briefly the scope of the various sections. Section 1 contains the definitions; the second sub-section covers any pensions which were suspended on the 1st April, 1949, by reason of the pensioner's re-employment. Where a civil servant has been transferred to the service of a local authority or other public employment, his last employer will bear the cost of any increase in his pension subsequent to the date of transfer.
Section 2 is the important section and sets out the "appropriate sum", which is the increase which may be given subject to the general overriding consideration that no pensioner may receive more than would be payable if the pension were recalculated by reference to the increases in pay granted in 1946.
Section 3 provides for the increase of the pensions of police and civil servants, other than those increased under previous legislation, and the pensions of teachers. Section 4 provides for widows' pensions and children's allowances granted under the Ministerial and Parliamentary Officers Acts, and Section 5 for police and Civil Service pensions where increases under this Bill are being substituted for previous lesser increases given. Local authorities are covered by Section 6 and harbour authorities by Section 7.
Section 8 is of particular application. It applies to a person who has two pensions. No increase will be payable if the total of the pensions amounts to £450 a year or more, and subject to this consideration the increase given will be the appropriate sum calculated by reference to the aggregate of the pensions in the manner set out in Section 2.
Section 9 allows increases to be granted retrospectively from the 1st April, 1949, except in the case where the pension did not commence until a later date. Under Section 10 increases now being granted in pensions which were increased under the Pensions (Increase) Act, 1920, will be calculated on the total amount at present being paid. Section 11 provides that any statutory provision which applied to a pension immediately before it was increased shall apply to it as increased, and under this authority increases in pensions will be charged to the same source as the original pensions. Section 12 provides that increases in teachers' pensions will be granted by the Minister for Education, police pensions by the Minister for Justice, post office pensions by the Minister for Posts and Telegraphs, and all other pensions by the Minister for Finance.
Section 13 provides a slight easement in a provision in the Royal Irish Constabulary (Resigned and Dismissed) Pensions Order, 1924, which restricts to two-thirds of retiring salary the total which can be drawn by way of pension under the Order and pension in respect of service in another police force or public office. I propose to allow retiring salary to be taken at 1946 levels for this purpose.
Section 14 is another special provision of limited application to cover cases where the recovery of compensation in respect of the injury or death of a member of a police force led to the award of a reduced pension or sometimes to no pension at all. Section 15 enables the Minister for Finance to determine doubts and Section 16 provides for Electricity Supply Board employees whose pensions are at present restricted under the Emergency Powers (No. 244) Order, 1942.