Dáil Éireann debate -
Wednesday, 26 Jun 2002

Vol. 553 No. 6

Written Answers. - Defence Forces Pensions.

Seán Haughey

Question:

119 Mr. Haughey asked the Minister for Defence the reason an Army pension is reduced when a person reaches the age of 66 and qualifies for a pension from the Department of Social and Family Affairs; if he will review this situation; and if he will make a statement on the matter. [14862/02]

Minister for Defence (Mr. M. Smith)

The Defence Forces pensions schemes provide for the payment to a retired NCO or private of a special increment, currently €6.38 a week, in addition to basic pension, for each year of pensionable service in excess of 21 years up to a maximum of 31 years. As a general rule, the special increment continues to be payable until the pensioner becomes entitled to a social welfare retirement pension at age 65 or old age contributory pension at age 66, at which stage the increment ceases to be payable. The personal rate of either social welfare pension is considerably greater than the maximum special increment. Exceptionally, the increment continues to be payable up to 70 years of age in the case of a pensioner who was discharged prior to 1 August 1978, provided he is not in receipt of a social welfare retirement pension.

The current arrangements are in accordance with the principle of integrating occupational benefits with social insurance benefits in the case of employees, such as NCOs and privates, who are fully insured under the Social Welfare Acts. The method of integration used in the case of NCOs and privates is more advantageous than the standard method of full integration applicable in other public service employments.

The general issue of integration of occupational pensions in the public service was examined by the Commission on Public Service Pensions in its final report published in January 2001. The commission accepted that integration is a fundamental component in the public service pensions framework and was strongly of the view that it should be continued. While the commission did recommend a modified integration method in the case of public servants who retire on relatively low levels of pay, this recommend ation will have no impact on the current arrangements applicable to retired NCOs and privates.

Previously the application of the integration principle in the case of NCOs and privates was specifically considered in 1990 by the Commission on Remuneration and Condition of Service in the Defence Forces, also known as the Gleeson Commission, which did not recommend any change in the arrangements in operation.