Military Service Allowance (MSA) was first introduced in 1979 to compensate Defence Forces personnel for the special disadvantages associated with military life. Arising from a recommendation made in 1990 by the Commission on Remuneration and Conditions of Service in the Defence Forces (the Gleeson Commission), MSA was made pensionable in the case of personnel retiring on or after 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 Final Report of the Commission on Public Service Pensions was published in January 2001 and was considered and broadly accepted by the Government. This Report was the first comprehensive examination of public service occupational pension arrangements since the foundation of the State. The Commission was an independent body and had invited submissions from interested parties, giving those concerned an unprecedented opportunity to put their case on occupational pension issues. I understand that groups representative of military pensioners were among those who made submissions and were met by the Commission.
In its Report, the Commission specifically addressed the issue of the pensionability of allowances (including the MSA) and the consequences for public service pensioners generally. However, 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, the Commission did not recommend any increase for the pensioners concerned. Aside from pre-August 1990 Defence Forces pensioners, the other groups affected include certain retired members of An Garda Síochána and the Prison Service and retired teachers. In the context of the Government’s subsequent consideration of the Commission’s Report, no change in existing policy on this matter has been authorised or is contemplated.
