Dáil Éireann Debate, Tuesday - 22 February 2022
407. Deputy Bernard J. Durkan asked the Minister for Defence the exact amount being deducted from the pension of a person (details supplied) each month as a result of a court settlement; and if he will make a statement on the matter. [9391/22]
View answerThe person in question served in the Defence Forces from 1979 to 1985 before being discharged “Below Army Physical Standards”. This period of service service was below the minimum length of service required to qualify for an occupational or service pension; however, a Short Service Gratuity was paid at the time.
The person in question separately applied for a disability pension under the Army Pensions Acts, which he was awarded in 1986. In 1986 the value of his disability pension was €4,071 (£3,206) per year. The current rate of his disability pension is €13,749 a year.
The person in question also instituted civil proceedings in respect of the same injury and in July 1986 the High Court awarded him compensation of €37,457 (£29,500). His disability pension was therefore reviewed by the Minister for Defence in accordance with the provisions of Section 13(2) of the Army Pensions Act, 1923 (as amended). Section 13(2) provides:-
“Any compensation which may be received from or on behalf of the person alleged to be responsible for the act which caused the wounding….. may be taken into consideration in fixing the amount of any pension, allowance or gratuity which might be awarded under this Act to or in respect of such person and if such compensation is received after the award of any such pension or allowance the Minister may review the award and, having regard to the amount of such compensation, either terminate or reduce the amount thereof”
The underlying objective of Section 13(2) is to take into consideration compensation paid ‘on the double’ for the same disablement.
In March 1987, the then Minister for Defence decided under the provisions of Section 13(2) to reduce the disability pension in question by the annuity value (as assessed by an Actuary) of the civil compensation received. The annuity value of the civil compensation was assessed at €3,648 (£2,873) a year.
The person in question applied to the High Court for a judicial review of the Minister’s decision to reduce his pension. The High Court decided that he had not been given adequate opportunity to present his case before the decision to reduce the disability pension was made. The Court quashed the decision to reduce the disability pension and ordered that the matter be considered anew. The Court did not express any view as to the outcome of the review. The Department consented to the High Court’s decision and an Order to this effect was made. The Order did not preclude the then Minister for Defence from arriving at the same decision made previously.
A fresh review of the disability pension was undertaken and all aspects of the case, including, in particular, representations made by his solicitors, were fully considered. In March 1988 the then Minister decided to take into account all of the civil compensation received by him and to reduce the disability pension by the assessed annuity value of that compensation. The reduction took place from 1 April 1988, some two years after the date of discharge and after payment of the pension had commenced.
As the annuity value was assessed at €3,648 (£2,873) a year the effect of the decision under Section 13(2) is to reduce the rate of disability pension payable from €13,749 to €10,101 a year at the current rates payable. The annual deduction of €3,648 equates to a monthly deduction of €304. (Defence Forces’ disability pensions are not subject to Income Tax.) The annuity value has remained fixed at €3,648 per annum since 1988; however, the annual value of the disability pension has increased over time from €4,071 (£3,206) in 1986 to a current value of €13,749.
