Jack Wall
Ceist:192 Mr. Wall asked the Minister for Defence the estimated cost of implementing the military service allowance; the service which was provided; and if he will make a statement on the matter. [19877/01]
Written Answers. - Military Service Allowance.
This question refers to the issue of having military service allowance, MSA, included in the calculation of pensions of Defence Forces' personnel who retired before 1 August 1990. I refer the Deputy to my reply to Question No. 19 on 21 June 2001.
At current rates, the immediate cost to my Department of extending the benefit of MSA to pre-August 1990 pensioners – of whom there are some 4,500 – is estimated at £5 million a year. There would also be cost repercussions in other areas of the public service. In this regard, the commission on public service pensions indicated in its final report, which was published in January 2001, that it had obtained actuarial advice on the impact of making certain allowances, including MSA, pensionable in the specific cases 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 per 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 assessed the arguments involved, did not recommend any increase in pension for those groups.