I move that the Bill be now read a Second Time.
Increases in retired pay, pensions and gratuities for or in respect of former members of the Permanent Defence Forces (including the Army Nursing Service) and the Chaplaincy Service are promulgated by Defence Forces (Pensions) Schemes which are made under the authority contained in the Defence Forces (Pensions) Act, 1932, as amended. Section 4 of that Act provides that no pension scheme shall come into force until it has been laid before each House of the Oireachtas and has been confirmed by resolution of each such House.
There are two types of pension increases which can be described as "automatic". The first is an increase related to an increase in remuneration —that is, where the pension bears a proportionate relation to remuneration, so that, when the remuneration is increased, the pension must also be increased. The second is what has come to be known as a "Budgetary" increase—the type of increase, applicable to State pensioners generally, announced by the Minister for Finance in connection with the Budget.
Statutory provision has to be made for such increases in the different pensions codes. As far as the Defence pensions codes are concerned, the practice up to now has been to amend the Military Service Pensions Acts, the Army Pensions Acts, the Connaught Rangers (Pensions) Acts and the MacSwiney (Pension) Acts and, as regards retired pay and pensions under the Defence Forces (Pensions) Schemes, to introduce new amending schemes to provide for the increases.
These measures take up a certain amount of Parliamentary time, and in the course of the debate on one such amending measure a few years ago—it was the Army Pensions (Increase) Bill, 1954—reference was made in this House to the desirability of simplifying the procedure for promulgating increases of the specific types I have mentioned in the pensions administered by my Department.
The Pensions (Increase) Act, 1964, which enables the Minister for Finance to prescribe such increases by regulation rather than by legislation, is wide enough in its scope to cover a number of the pensions for which the Minister for Defence is responsible, and consequently Budgetary increases in military service pensions, Connaught Rangers pensions, and the pension under the MacSwiney (Pension) Acts are being brought within that particular procedure.
It was hoped to make a similar arrangement for increases in benefits under the Defence Forces (Pensions) Schemes, but the machinery of the Pensions (Increase) Act, 1964, was not fully adaptable for this purpose. Neither was it possible to cover benefits under the Army Pensions Acts, but I hope in the near future to introduce an amendment of these Acts which will also provide for regulations rather than legislation.
Accordingly, the object of this Bill is to achieve the desired simplification in procedure by providing that a pension scheme which deals with increases in benefits, arising out of increases in service pay or Budgetary increases in public service pensions, will not require confirmation by formal resolution of each House to bring it into force but will come into force as provided in the scheme. Such a scheme would be laid before the House and would not be debated unless a resolution is moved for its annulment.
I should emphasise that this new procedure applies only to the two "automatic" types of increases I have mentioned. Where any other type of change is being made in the schemes the old procedure will be followed—that is to say, the scheme will not come into force until it has been laid before each House and has been confirmed by resolution of each of them.