Dáil Éireann debate -
Wednesday, 13 Feb 2002

Vol. 548 No. 3

Written Answers. - Pension Provisions.

Dick Spring

Question:

46 Mr. Spring asked the Minister for Defence when the parallel structure will be established to examine the implications of the final report of the Commission on Public Service Pensions for the Defence Forces; and if he will make a statement on the matter. [4688/02]

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 accepted the thrust of the package of reforms recommended by the commission and directed that the working group to advise on implementation, as provided for in the Programme for Prosperity and Fairness, be established. The operational details of the implementation of the commission's recommendations will be agreed by Government following receipt of a report from the working group, to be made within six months. The Government also decided to establish parallel structures – subject to the same timeframe and remit – in the case of the Defence Forces and the Garda Síochána. Arrangements are also being made to facilitate pensioner group representation in respect of the commission's recommendations on pensions increase policy.

I understand that a plenary meeting of the PPF pensions working group took place on 10 January 2002 when it was agreed to establish two subgroups. The main sub-group held its first meeting on 31 January and its remit includes all issues arising from the commission's report other than those relating to pension increases which will be considered by a second subgroup. The second subgroup will include representation from pensioner groups and will begin its task once a consultation process with pensioners has been completed. The establishment of parallel structures for the Defence Forces is being actively addressed in my Department and it is hoped that it will be possible to have appropriate structures put in place in the very near future.

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, MSA – which had been introduced in 1979 – was made pensionable in the case of personnel retiring on or after the 1 August 1990. 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 Pen sions specifically addressed the issue of the pensionability of allowances, including MSA, and the consequences for pensioners generally in its final report. However, the commission, having considered the arguments advanced by the groups affected, together with long-standing 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. This issue would not come within the scope of the parallel structures for the Defence Forces.

Question No. 47 answered with Question No. 33.

Question No. 48 answered with Question No. 41.