asked the Minister for Defence the reason the pensions of non-commissioned Army personnel are reduced substantially when they reach the age of 70 if they are in receipt of an old age contributory pension; in view of the fact that this rule does not apply to other retired public servants, if he will review it; and if he will make a statement on the matter.
Ceisteanna — Questions. Oral Answers. - NCO Pension Reduction.
18.
(Limerick West): The Defence Forces (pensions) schemes provide for the payment of a special increment of £2.33 a week for each year of pensionable service in excess of 21 years, up to a maximum of 31 years. As a general rule, this special increment continues to be payable until the pensioner becomes entitled to a social welfare retirement pension or to a contributory old age pension, at which stage the special increment is withdrawn. As the social welfare pension is greater than the special increment, the pensioner is financially better off when he receives that pension even though the special increment is withdrawn. His total income is then much greater than 50 per cent of his Army pay.
Service pensions for non-commissioned Army personnel are non-contributory and are payable out of public funds. The State as the employer of the soldier also makes a substantial contribution to the social insurance fund from which the social welfare pensions are paid. Hence, the State is entitled to take into account such a pension in determining the rates of non-contributory service pensions.
In this respect, soldiers are treated more favourably than other State employees whose rates of occupational pensions are calculated having regard to their social welfare entitlements so that their total income from public funds does not exceed 50 per cent of their pay.
No change in the present practice is proposed.
Would the Minister agree that an anomaly exists in the payment of pensions to non-commissioned Army personnel compared with other civil servants such as teachers, gardaí and many others? It has been stated that the deduction is made because the State as an employer has contributed to the pension, but that hardly seems reasonable, when in fact this is the only category of person in the State to whom this condition applies when qualifying for a pension?
(Limerick West): That is not correct, Deputy. The amounts referred to, that is the basic pension and the long service increment of 5p per week for each year of qualifying service in excess of 21 years, but not exceeding 31 years, are paid to the pensioner during his lifetime. However, the additional increment mentioned, that is the additional £2.33 a week, terminates when the soldier reaches 66 years, the age prescribed for a contributory old age pension or when he becomes otherwise entitled to a retirement pension at 65 years of age under the Social Welfare Acts. The additional increment would, however, continue to be paid if, without his own default, the soldier fails to qualify for a contributory old age pension. As a special concession the additional increment continues to be payable up to 70 years of age in the case of a pensioner discharged before 1 August 1978 provided he is not in receipt of the social welfare retirement pension.