Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Dáil Éireann díospóireacht -
Tuesday, 18 Oct 1994

Vol. 445 No. 9

Adjournment Debate. - Defence Forces Personnel Pension Entitlements.

Having listened to the last exchange I should inform the Minister that I have written to his Minister of State proposing an alternative to make flats the subject of a signable leasehold so that people could at least keep them in the family while paying the rent for them. I attended a public meeting in my own constituency where everybody thought that was a just approach because they appreciated some of the problems the Minister has raised.

The matter I wish to raise is the issue of the computation of pensions of retiring members of the Defence Forces. I have been written to by a number of retired personnel who have indicated that there is unfair discrimination between those who retired before and after August 1990. If you retired prior to that date your military service allowance is not reckoned as part of your income for the purpose of determining your pension, whereas if you retire after that date it is.

As I understand it the Gleeson Commission, which examined the question of remuneration in the Defence Forces, said that in their view such military service allowance should be reckonable in respect of pension entitlements and should be implemented immediately with retrospective effect, regardless of whether the person retired before or after August 1990. I understand — and I do not criticise them — the Permanent Defence Force Other Ranks Association negotiated hard with the Department of Defence for the implementation of the Gleeson report but settled for the 1990 cut off point.

I ask the Minister to inform the House of the number of people affected by the 1990 cut off point and the cost to the Exchequer of implementing the Gleeson recommendation in full so that we know the financial implications of taking military service allowance into the reckoning for deciding the pension entitlements of those who retired prior to August 1990. Based on the letters I have received, there is a manifest feeling of injustice that people who retired from the same job on different dates are paid pension on a wholly different basis. Those who retired prior to August 1990 are not entitled to have their military service allowance taken into account in computing their pensions. Those people who are receiving less than those who retired months later, although they effectively completed the same service, have a genuine grievance.

Anybody looking at the justice of the case would appreciate it is not contrived. It is not like the labourers in the vineyard. Everybody worked for the State as a member of the Defence Forces on equal terms and everyone received the military service allowance but some people are being told it does not count for the purpose of computing their pensions. It is very difficult for a person who retired over four years ago to see a colleague, who survived him in military service by a matter of months receive a larger pension on the basis of an arbitrary cut off point which would not have been set if the Gleeson Commission's report had been implemented.

The Defence Forces pensions code is unique in the public sector in that provision is made for the payment of immediate pensions and gratuities after unusually short periods of service and regardless of age. The minimum service required for a pension and gratuity is 12 years in the case of commissioned officers and 21 years in the case of enlisted personnel. Maximum pension can be attained after as little as 24 or 25 years' service by officers and 31 years by enlisted personnel.

Military service allowance was introduced in 1979 as compensation for the special disadvantages associated with military life and was not reckonable for pension or gratuity purposes. The inclusion of this allowance in reckonable earnings was subsequently considered by an interdepartmental committee which proposed that consideration should be given to the question of making the allowance pensionable.

In its report, dated 31 July 1990, the Commission on Remuneration and Conditions of Service in the Defence Forces, the Gleeson Commission, recommended that the military service allowance should be made pensionable. On foot of this recommendation, an addition to Defence Forces pensions in respect of military service allowance was introduced and applies, subject to certain conditions, to personnel retiring on or after 1 August 1990, i.e. the day following publication of the commission's report. Military service allowance has been reckoned in the calculation of the pensions of all qualified retired personnel.

The pension payable to an NCO or private on retirement consists of a basic flat rate, which varies according to rank, in respect of 21 years' service; an addition to basic pension of £14.45 a week in respect of military service allowance, 40 per cent of the rate of that allowance; where pensionable service is 31 or more years, an increased addition in respect of military service allowance of £18.06 a week, 50 per cent of the rate of that allowance; and an additional increment of £3.51 a week in respect of each year of pensionable service in excess of 21 years but not exceeding 31 years. An additional amount in respect of certain allowances may also be payable.

The question of the inclusion of military service allowance in the pension of personnel who retired from the Defence Forces prior to August 1990 has been raised on a number of occasions in the House in recent times. The line consistently taken has been that having regard to established superannuation practice in other areas of the public service, and the cost involved, the extension of the measure to pensioners who retired prior to 1 August 1990 cannot be undertaken.

The Gleeson Commission in its report concluded that the overall value of the superannuation benefits provided for the Defence Forces is considerably in excess of those available under other public service schemes. Deputy McDowell asked the number of people affected by the 1990 cut off point and the cost to the Exchequer of making retrospective payment to those who retired prior to August 1990. I will ask the Minister for Defence to communicate directly with the Deputy on those details.

The Dáil adjourned at 9.10 p.m. until 10.30 a.m. on Wednesday, 19 October 1994.

Barr
Roinn