Dáil Éireann debate -
Tuesday, 20 Oct 1998

Vol. 495 No. 4

Written Answers. - Gratuity Payment.

Bernard Allen

Question:

109 Mr. Allen asked the Minister for Defence further to Parliamentary Question No. 158 of 6 October 1998, his views on whether he considers it reasonable that a fixed sum for a person (details supplied) in County Cork will be frozen until 2019; if he will give consideration to the devaluation of the lump sum in the intervening 21 years; and if he will make a gratuity payment immediately in order to eliminate the risk of devaluation or consider an alternative of depositing the amount in a bank account in order that it will gain interest. [20105/98]

Minister for Defence (Mr. M. Smith)

The gratuity and pension which will be due to be paid to the person under reference on the date of his 65th birthday on 4 January 2019, will be derived from the actual rate of pay applicable to his former employment on that date in 2019, with reference to the particular scale point at which he was remunerated at the time of his voluntary resignation from service, and with reference to his history of eligible pensionable service under the terms of the non-contributory pension scheme for non-established State employees, on the date of his voluntary resignation from service.

The question of devaluation does not, therefore, arise. The value of the gratuity and pension, as eventually payable, will fully reflect the increases in the remuneration attached to the persons former employment with the Department of Defence in the period from the date of his voluntary resignation in July 1998 to the date of his 65th birthday in January 2019.

The terms of the pension scheme referred to do not provide for advance payments of gratuity before normal retirement age in circumstances of voluntary resignation from service.