Vol. 491 No. 7
51 Mr. Enright asked the Minister for Defence the plans, if any, he has to include military service allowance for pension purposes for personnel who retired prior to 1 August 1990; and if he will make a statement on the matter. [12996/98]
The inclusion of military service allowance, MSA, in the calculation of superannuation benefits for military personnel arose from a recommendation made by the Commission on Remuneration and Conditions of Service in the Defence Forces, the Gleeson Commission. The agreed arrangements provide, subject to certain conditions, for increases in pensions and gratuities to take account of MSA in the case of personnel retiring on or after 1 August 1990, i.e. the day following publication of the commission's report. MSA has been reckoned in the calculation of the pensions of all qualified retired persons.
The implementation of the commission's recommendation was the subject of detailed and lengthy discussions with the military representative associations, RACO and PDFORRA. In that context, the various arguments in support of the view that MSA should be reflected in the pensions of personnel who retired before 1 August 1990 were fully considered. However, having regard to the practice followed in other areas of the public service and the considerable cost involved both to my Department and to other areas of the public service, it has not been possible to extend the scope of the commission's recommendation to personnel who retired before 1 August 1990.
When I met some months ago with representatives of the Association of Retired Commissioned Officers, ARCO, I listened carefully and sympathetically to their views on this issue and I undertook to have the matter re-examined. In that context, the Deputy may be aware that a commission on public service pensions was established by Government in February 1996 against a background of growing concern generally about the emerging cost of existing public service pensions. The commission has very broad terms of reference to examine and report on the occupational pension arrangements of public servants, including claims for improvements in existing superannuation benefits. In that regard, I understand that ARCO and the Irish UN Veterans Association were among various groups which made submissions to the commission.
The commission is an independent body and is scheduled to make its final report to Government in 1998. In its interim report, published in November 1997, the commission lists the pensionability of overtime and allowances as one of the main issues raised by parties who made submissions. The Government will consider any recommendations the commission may make in this regard.
