Dáil Éireann debate -
Thursday, 21 Jun 2001

Vol. 538 No. 5

Written Answers. - Defence Forces Pensions.

Seán Ryan

Question:

19 Mr. S. Ryan asked the Minister for Defence the progress the Government has made in its consideration of the position of the Commission on Public Service Pensions regarding the inclusion of the military service allowance in calculating pensions of members of the Defence Forces who retired between 1974 and 1990; and if he will make a statement on the matter. [18322/01]

Minister for Defence (Mr. M. Smith)

Arising from a recommendation made in 1990 by the Commission on Remuneration and Conditions of Service in the Defence Forces, the Gleeson Commission, military service allowance – MSA, – which had been introduced in 1979, was made pensionable in the case of personnel retiring on or after 1 August 1990. The commission's report was published on 31 July 1990. This approach was consistent with settled public service pensions policy which provides that, when an allowance is being made pensionable for serving personnel, the benefit does not apply to existing pensioners.

As I have previously indicated to the House, the Commission on Public Service Pensions specifically addressed the issue of the pensionability of allowances, including the military service allowance, and the consequences for pensioners generally in its final report which was published on 31 January 2001. The commission did not recommend any concession to pensioners in this context.

The Government has not yet completed its detailed consideration of the commission's report. The report is a lengthy and complex document and contains many wide-ranging and far-reaching recommendations regarding public service pensions generally. These recommendations have implications for all parties having an interest in public service pensions, the Government, public service employers, trade unions, pensioner associations, individual public servants, as well as the taxpayer.

For this reason, the Government is taking particular care in examining the report. When publishing the report, the Minister for Finance noted the commission's view that its 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 measures as a whole. I expect this element will be a significant consideration in deciding the Government's response to the commission's report.