This question refers to the issue of having military service allowance (MSA) included in the calculation of pensions of Defence Forces' personnel who retired before 1 August 1990.
The inclusion of MSA in the calculation of superannuation benefits for military personnel arose from a recommendation made in 1990 by the commission on remuneration and conditions of service in the defence forces the Gleeson commission. The agreed arrangements for the implementation of the recommendation provide, subject to certain conditions, for increases in pensions and gratuities to take account of MSA in the case of personnel retiring on or after 1 August 1990, that is, the day following publication of the commission's report. MSA has been reckoned in the calculation of the pensions of all qualified persons who retired since that date.
The various arguments in support of the view that MSA should be reflected in the pensions of personnel who retired before 1 August 1990 were fully considered in the context of the detailed and lengthy discussions with the military representative associations which preceded the implementation of the recommendation of the Gleeson commission. However, having regard to the practice followed in other areas of the public service and the considerable cost involved, which is not confined to my Department alone, it has not been possible to extend the scope of the commission's recommendation to those who retired before 1 August 1990.
It is a core element of public service pensions parity policy that, when an allowance is being made pensionable for serving personnel, the benefit does not apply to existing pensioners. Accordingly, the stance adopted on the pensionability of MSA is consistent with settled pensions policy in the public service generally.