Dáil Éireann debate -
Tuesday, 9 Oct 2001

Vol. 541 No. 4

Written Answers. - Pensions Provisions.

Jack Wall

Question:

218 Mr. Wall asked the Minister for Defence if his Department has had further discussions with other Departments regarding the pensions report recently published; if a decision has been reached regarding the military service allowance; and if he will make a statement on the matter. [23122/01]

Minister for Defence (Mr. M. Smith)

The Government's response to the final report of the commission on public service pensions was announced by the Minister for Finance on 28 September 2001. The Government has decided to accept the thrust of the package of reforms recommended by the commission and intends to establish the working group to advise on implementation as provided for in the Programme for Prosperity and Fairness.

The operational details of the implementation of the commission's recommendations will be agreed by Government following receipt of a report from the implementation working group, to be made within six months of this decision. Parallel structures, subject to the same time frame and remit, will be established in the case of members of An Garda Síochána and the Defence Forces. Arrangements will also be made to facilitate pensioner group representation in relation to the commission's recommendations on pensions increase policy.

I understand that the Department of Finance is in discussion with the public services committee of the ICTU regarding union representation on the implementation working group. My Department is keeping in touch with developments in that regard with a view to progressing the establishment of the parallel structures for the Defence Forces as soon as possible.

As regards the question of reckoning military service allowance, MSA, in the calculation of the pensions of pre-August 1990 Defence Forces pensioners, the position is that the approach adopted when MSA was first made pensionable was fully consistent with settled public service pensions policy which provides that the benefit of an allowance being made pensionable for serving personnel does not extend to existing pensioners. The commission on public service pensions specifically addressed the issue of the pensionability of allowances, including MSA, and the consequences for pensioners generally in its final report but, having assessed the arguments involved, did not recommend any increase for the pensioners concerned. No change in existing policy on this matter has been authorised in the context of the Government's consideration of the commission's final report.