Vol. 533 No. 4
38 Mr. McGrath asked the Minister for Defence the plans he has to make changes to the pensions of retired Army personnel who have not benefited from the inclusion of the military service allowance; and if he will make a statement on the matter. [9061/01]
62 Proinsias De Rossa asked the Minister for Defence if the Government has yet concluded its consideration of the position of the Commission on Public Service Pensions in regard to the inclusion of the military service allowance in calculating pensions of members of the Defence Forces who retired between 1974 and 1990; and if he will make a statement on the matter. [9006/01]
I propose to take Questions Nos. 38 and 62 together.
As I indicated to the House in reply to Questions Nos. 28 and 91 on 14 February 2001, the final report of the Commission on Public Service Pensions was published by the Minister for Finance on 31 January 2001.
The commission specifically addressed the issue of the pensionability of allowances, including the military service allowance, and the consequences for pensioners generally in chapter 22, section 6 of its final report. It indicated that it had obtained actuarial advice on the impact of making the allowances in question pensionable in the specific case of Garda and Defence Forces' pensioners for future pension payments only. The commission was advised that, at 1997 costs, this would result in an immediate increase in expenditure of £9 million a year and that the accrued liabilities of the State would increase by £116 million if this change were implemented for both groups.
The commission, having considered the arguments advanced by the groups affected, together with long standing public service pensions policy in that context and the cost implications involved, did not recommend any concession. Its conclusions are contained in paragraph 22.6.6 of the report and states:
