Vol. 542 No. 4
55 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. [24458/01]
As I recently indicated to the House, 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 timeframe and remit – will be established in the case of members of the Garda Síochána and Defence Forces. Arrangements will also be made to facilitate pensioner group rep resentation in relation to the commission's recommendations on pensions increase policy.
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 arising from a recommendation made in 1990 by the Commission on Remuneration and Conditions of Service in the Defence Forces – the Gleeson Commission – the allowance – which had been introduced in 1979 – was made pensionable in the case of personnel retiring on or after 1 August 1990. As I have previously indicated to the House, this approach 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. The commission, having considered the arguments advanced by the groups affected, together with longstanding public service pensions policy in that context and the substantial cost implications 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.
