Written Answers. - Defence Forces Retirement Scheme.
Michael Noonan
Ceist:
244
Mr. Noonan
asked the
Minister for Defence
the reason military service allowance is not reckonable for pension purposes in respect of soldiers who retired prior to August 1990; and if he will make a statement on the matter.
[17929/99]
John McGuinness
Ceist:
252
Mr. McGuinness
asked the
Minister for Defence
the arrangements, if any, his Department has to pay military service allowance to pensioners who retired before 1 August 1990; the commitments, if any, entered into with representatives of the above group since 1997; and if he will make a statement on the matter.
[17716/99]
I propose to take Questions Nos. 244 and 252 together.
The inclusion of military service allowance – MSA – in the calculation of superannuation benefits for military personnel arose from a recommendation made in 1990 by the Commission on Remuneration and Conditions of Service in the Defence Forces – the Gleeson Commission. The agreed arrangements for the implementation of the recommendation 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, namely, the day following publication of the commission's report. MSA has been reckoned in the calculation of the pensions of all qualified persons who retired since that date.
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 in the context of the detailed and lengthy discussions with the military representative associations which preceded the implementation of the recommendation of the Gleeson commission. However, having regard to the practice followed in other areas of the public service and the considerable cost involved, which is not confined to my Department alone, it has not been possible to extend the scope of the commission's recommendation to those who retired before 1 August 1990.
It is a core element of public service pensions parity policy that, when an allowance is being made pensionable for serving personnel, the benefit does not apply to existing pensioners. Accordingly, the stance adopted on the pensionability of MSA is consistent with settled pensions policy in the public service generally.
Subsequent to my coming into office, I met in November 1997 with representatives of the Association for Retired Commissioned Officers – ARCO. I listened carefully and sympathetically to their views on this issue and I undertook to have the matter re-examined. I was very conscious, however, that the situation regarding pre-August 1990 Defence Forces' pensioners involved fundamental issues of policy and cost, which are not confined to my Department alone. While my Department initiated this re-examination, it became clear that it would be inappropriate to proceed any further pending the publication of the final report of the Commission on Public Service Pensions.
The 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. It was open to individuals and groups to make submissions to the commission and I understand that ARCO, together with the organisation of National Ex-Servicemen and women and the Irish UN Veterans Association, were among various pensioners' groups to do so.
The commission is an independent body and is scheduled to make its final report to Government in the near future. In its interim report – published in November 1997 – the commission lists the pensionability of allowances generally as one of the main issues raised by various interested parties who made submissions. The Government will consider any recommendations the commission may make in this regard. The position of pre-August 1990 Defence Forces' pensioners in the MSA context, will be further considered in the light of the final report of the commission and of any relevant Government decisions thereon.
