Dáil Éireann debate -
Tuesday, 24 Jan 1995

Vol. 447 No. 11

Written Answers. - Military Pensions/Allowances.

Mary Harney

Question:

279 Miss Harney asked the Minister for Defence the plans, if any, he has to address the grievances of the Irish United Nations Veterans' Association regarding pensions and military service allowance; and if he will make a statement on the matter. [1284/95]

Noel Ahern

Question:

280 Mr. N. Ahern asked the Minister for Defence the reason payment of the military service allowance is not being made to military service pensioners who retired before 1 August 1990; the number of extra recipients who would qualify if it were backdated; and the approximate extra annual cost. [1359/95]

Minister for Defence (Mr. Coveney)

I propose to take Questions Nos. 279 and 280 together.

The position in regard to the various matters (including the pensionability of military service allowance) which have been raised with the Department by the Irish United Nations Veterans Association 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 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 benefits under this scheme is dependent upon the soldier's 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 special exgratia 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 Pensions Schemes provide for the payment of a special increment (currently £3.58 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)

In its report dated 31 July 1990, the Gleeson Commission recommended that military service allowance should be made pensionable. On foot of this recommendation, an addition to pension in respect of military service allowance 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.

Military service allowance has been reckoned in the calculation of the pensions of all qualified retired personnel. The estimated cost of extending this increase to pensioners who retired prior to 1 August 1990 would be in excess of £4 million a year. Having regard to established practice in other areas of the public service, and the cost involved, it is regretted that the extension of the increase to other retired personnel cannot be undertaken.

The number of persons in receipt of pensions under the Defence Forces Pensions Schemes, including the spouses of deceased personnel, is 6,380. Of these about 5,600 pensioners are not in receipt of an addition to pension in respect of military service allowance.

4.Increase in pensions

Agreement was recorded on 29 September 1994 with the Permanent Defence Force Other Ranks Representative Association and on 3 November 1994 with the Representative Association of Commissioned Officers regarding the application to the ranks represented by them of the terms of the pay agreement which forms part of theProgramme for Competitiveness and Work. On foot of these agreements, pensions fell to be increased by 2 per cent from the 1 June 1994. The increased rates of pension, together with the arrears due, were paid in December, 1994.