I move:
That the Defence Forces (Pensions) (Amendment) (No. 3) Scheme, 1972, prepared by the Minister for Defence with the consent of the Minister for Finance under Sections 2, 3 and 5 of the Defence Forces (Pensions) Act, 1932 and Section 4 of the Defence Forces (Pensions) (Amendment) Act, 1938, and laid before the House on the 12th day of December, 1972 be confirmed.
This scheme was made by my predecessor and has already been approved by the Seanad. I am happy to say that the scheme is one with which I am in entire agreement.
The last amending scheme to come before the House was the Defence Forces (Pensions) (Amendment) (No. 3) Scheme, 1970, which provided improved retirement benefits for certain officers, non-commissioned officers and privates of the permanent Defence Force. In the administration of that scheme it became apparent that certain further improvements were necessary and desirable. This present scheme, in the main, provides for these improvements and it also amends the Defence Forces (Pensions) Schemes in other respects.
Throughout the public service generally a lump sum of a year's pay is payable in the case of death in service after a minimum of five years' service. A similar provision is being made by Articles 5 and 6 of this scheme where an officer or soldier dies in service with five or more years' service. It will mean a big improvement in the death benefit payable under the existing schemes. Following the same precedent, the qualifying period in the case of death in service for the grant of a pension to the widow of an officer is being reduced from 12 to five years. This is the effect of Article 7.
A number of long-service soldiers of the Survey Company, Corps of Engineers, were transferred to the Reserve in 1940 to take up civilian posts in the Ordnance Survey. They had not the necessary 21 years' service to qualify for Army pensions. However, provision was made in the 1956 Amending Scheme for the grant of modified pensions to them based on their actual Army service, these pensions to commence on the date of their retirement from the civilian posts. Those concerned served again during the Emergency and Article 8 provides that any portion of this service not reckoned for civilian pension may be added to their former Army service for pension under the Defence Forces (Pensions) Schemes.
The No. 3 Scheme of 1970 provided for a percentage increase in the retired pay of senior officers who retire while holding posts of responsibility for which they receive a special allowance in addition to their regimental pay. A few cases have come to light where officers did not hold these posts on the date of their retirement but held them previously for the requisite minimum period of one year. As it was not the intention that they should be excluded from benefit, Article 9 provides that the increased retired pay will be payable to them.
The improved pay-related gratuities introduced by the 1970 scheme for married officers retiring on age grounds or retiring voluntarily within five years of the age limit were based on regimental pay only. It is now accepted that the additional pay payable to professional officers should be reckonable in the calculation of these gratuities and Article 10 provides accordingly.
A substantial increase in the pension increment payable to soldiers for service between 21 and 31 years was also provided by the 1970 scheme. This increased increment ceases when the soldier reaches the age of 70 when he would normally be eligible for a contributory old age pension under the Social Welfare Acts. A few cases have come to light where soldier pensioners failed to qualify for contributory old age pension. Article 11 provides that if the failure to qualify is not due to the pensioner's own fault, the increased pension increment will continue to be payable.
The 1970 scheme introduced for the first time gratuities for long-service married soldiers discharged on pension. However, these gratuities which are pay-related were calculated by reference to ordinary pay only. It is now accepted that additional pay, where payable, would be included in the computation of the gratuities and Article 12 contains the necessary provision. Article 13 is merely a drafting amendment which rectifies an unintentional omission in Article 11 of the 1970 scheme.
As I have said this scheme provides further improvements in retirement benefits and I am sure that Deputies will have no hesitation in approving of it. As relatively few people will be affected the cost of implementing its provisions will be moderate.