asked the Minister for Defence if his attention has been drawn to the fact that a person (details supplied) in Dublin 10 on reaching his 70th birthday had his Army pension reduced by £62.98 per month; whether a reduction of this magnitude is correct; if so, the rationale for this; if he will reinstate this amount to this person's pension; and if he will make a statement on the matter.
Written Answers. - Army Pensioner.
261.
Limerick West): The Defence Forces (pensions) schemes provide for the payment of a special increment of £2.41 a week to a soldier 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pension (at age 65 years) or to a contributory old age pension (at age 66), at which stage the special increment is withdrawn. However, as a special concession, the special increment continues to be payable up to 70 years of age in the case of a pensioner discharged prior to 1 August 1978, provided he is not in receipt of a social welfare retirement pension.
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 pension 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.
The person referred to by the Deputy was discharged prior to 1 August 1978 and reached the age of 70 years on 23 January 1989. In accordance with the provisions of the schemes already mentioned, the special increment ceased to be payable to him from that date.