Tony Gregory
Question:270 Mr. Gregory asked the Minister for Defence if the anomalies in army pensions as set out in a letter (details supplied) will be urgently reviewed and rectified. [747/94]
Written Answers. - Army Pensions.
The position in regard to the matters referred to in the letter in question is as follows:
1. Spouses' and Children's Pensions
Prior to 1978 there was no provision for the payment of pensions by the Department of Defence to the widows and children of deceased soldiers. Such provision was first made in 1978 when a contributory pension scheme for those dependants was introduced with effect from 1 June 1977.
Membership of the contributory scheme was compulsory in the case of soldiers enlisting after the 31 January, 1978 and optional in the case of soldiers who served at any time between 1 June 1977 and 31 January 1978. Payment of benefit under this scheme is dependent upon the soldiers having become a member of it and having paid the appropriate contributions as required by its terms.
Concurrently with the introduction of the contributory scheme, a specialex-gratia scheme was introduced to cover the dependants of soldiers who had either died in service, or had retired on pension prior to 1 June 1977 and to whom the contributory scheme did not apply. Initially, the rates of benefit under the ex-gratia scheme were half the relevant rates under the contributory scheme but over the years the rates have been brought up to full parity.
2.Special increment for service in excess of 21 years
The Defence Forces pension schemes provide for the payment of a special increment (currently £3.51 a week) in addition to the basic pension to a soldier for each year of pensionable service in excess of 21 years but not exceeding 31 years. As a general rule, this special increment is payable until the soldier pensioner becomes entitled to a social welfare retirement pension (at age 65) or to a contributory old age pension (at age 66). The personal rate of either social welfare pension is considerably greater than the maximum special increment. Exceptionally, the increment continues to be payable up to 70 years of age in the case of a pensioner who was discharged prior to 1 August 1978, provided he is not in receipt of a social welfare retirement pension.
The arrangements in place are in accordance with the principle of co-ordinating occupational pensions in the public sector with social welfare pensions in the case of employees who are fully insured under the Social Welfare Acts. Soldiers are so insured.
This matter was examined by the Commission on Remuneration and Conditions of Service in the Defence Forces (the Gleeson Commission). The commission did not recommend any change in the present arrangements.
3.Pensionability of military service allowance (MSA)
This allowance was introduced in 1979 as compensation for the special disadvantages associated with military life. In its report dated 31 July 1990 the Gleeson Commission recommended that the allowance should be made pensionable. On foot of this recommendation, an addition to pension in respect of MSA was introduced and applies, subject to certain conditions, to personnel retiring on or after 1 August 1990, i.e. the day following publication of the Gleeson report.
However, having regard to established superannuation practice in other areas of the public service, including the cost involved, it is regretted that the extension of the measure to other retired personnel cannot be undertaken.
4.Increase in pensions
Agreement was recorded on 20 September 1994 with the Permanent Defence Force Other Ranks Representative Association under the Conciliation and Arbitration Scheme for the Permanent Defence Force regarding the application to enlisted personnel of the terms of the pay agreement which forms part of theProgramme for Competitiveness and Work. On foot of this agreement, pensions fall to be increased by 2 per cent from 1 June 1994 in the case of retired enlisted personnel and the necessary arrangements for payment are being made. Discussions are still on-going under the Conciliation and Arbitration scheme regarding the application of the terms of the pay agreement to the commissioned ranks represented by RACO. The question of an increase in the pensions applicable to those ranks will be considered in the light of the outcome of the discussions.