Vol. 446 No. 1
105 Mr. M. McDowell asked the Minister for Defence the additional estimated cost of granting pensions to persons who retired before August 1990, if military service allowances were taken into account in calculating their pensions; and if he will make a statement on the matter. [1711/94]
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 (MSA) should be made pensionable. On foot of this recommendation, an addition to Defence Forces pensions in respect of MSA 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 estimated cost of extending this measure to pensioners who retired prior to 1 August 1990 would be in excess of £4 million a year. Having regard to established superannuation practice in other areas of the public service, and the cost involved, it is regretted that the extension of the measure to other retired personnel cannot be undertaken.
