Vol. 530 No. 4
28 Mr. Wall asked the Minister for Defence in view of the fact that the recent report on pensions made no reference to the inclusion of the military service allowance in calculating pensions of members of the Defence Forces who retired between 1974 and 1990, his plans to rectify this anomaly; and if he will make a statement on the matter. [4027/01]
91 Mr. Power asked the Minister for Defence the plans he has to make any changes in relation to the pensions of retired Army personnel following the publication of the report of the Commission on Public Service Pensions; and if he will make a statement on the matter. [4155/01]
I propose to take Questions Nos. 28 and 91 together.
These questions arise from the Final Report of the Commission on Public Service Pensions which was published by the Minister for Finance on 30 January 2001. The commission specifically addressed the issue of pensionability of allowances, including the military service allowance, and the consequences for pensioners generally in chapter 22, section 6 of its final report. It indicated that it had obtained actuarial advice on the impact of making the allowances in question pensionable in the specific case of Garda and Defence Forces' pensioners for future pension payments only. The commission was advised that at 1997 costs, this would result in an immediate increase in expenditure of £9 million a year and that the accrued liabilities of the State would increase by £116 million if this change were implemented for both groups.
The commission, having considered the arguments advanced by the groups affected, together with the long standing public service pensions policy in that context and the cost implications involved, did not recommend any concession. Its conclusions are contained in paragraph 22.6.6 of the report, which states:
The Commission has shown that the cost of any change in policy on this matter would be substantial. In addition, a change in policy would possibly be extended to other groups with similar claims for pension increases. Accordingly, having assessed the arguments involved, the Commission does not recommend any increase for the groups concerned.
The Government intends to make formal decisions on the commission's recommendations once it has an opportunity to consider the report in detail. In publishing the report, the Minister for Finance noted in particular the view that the commission's recommendations as set out in its final report represent an integrated and cohesive long-term strategy for public service pensions and that in implementing this strategy, it would be important to preserve the integrity of the package of the measures as a whole. This element will be a significant consideration in deciding the Government's response to the commission's report.
This matter has been debated at length and I am sure that the Minister, as well as Opposition spokespersons on Defence, have had numerous representations in relation to it. We have a situation where, after 1990, all the members of the representative forces have this military service allowance included for calculation of their pension yet the people who, in essence, set the standards for the Department of Defence due to their efforts overseas, many of whom would have served in the Congo and everywhere else, now find that—
Will the Deputy ask a question?
I am approaching that now, a Cheann Comhairle. Those people now find that they are not getting a payment that people who came after them are receiving. It is difficult to understand how we reached this decision. Despite the fact that the representative associations made strong representations to the survey group, they still have not been accepted. Will the Minister, in the final assessment by the Government of this report, support the representative bodies which have done tremendous work? On many occasions in the House the Minister spoke about the pride he felt when he went overseas and saw the work they had done and the good name they had created for the country, yet we are depriving those people of this payment in the most critical time of their lives. Will the Minister bring the views of the representative association to the Government table to see if we can do something to alleviate what is an awful discrepancy in relation to pension payments for members of the Defence Forces?
Since 1982 in the context of Garda pensions and since 1990 in the context of pensions for Defence Forces personnel issues of this nature have been thrashed out by successive Governments. In the final analysis it was decided, to once and for all establish the correct course of action, to have a commission receive representations from the various interests and for it to assess the merits, having regard to established superannuation practices and the economic cost, and to make a free and independent decision. In many cases it could be said, and I understand the Deputy's concerns, that one might have expected some type of concession to emerge, but that is not the position. The commission was very clear in its deliberations.
