Seán Power (Kildare South, Fianna Fail)
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Question 115: To ask the Minister for Defence if he will give further consideration to the inclusion of military service allowance in the calculation of the pensions of Defence Forces' personnel who retired prior to August 1990; and if he will make a statement on the matter. [16245/04]

Michael Smith (Tipperary North, Fianna Fail)
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Arising from a recommendation made in 1990 by the Commission on Remuneration and Conditions of Service in the Defence Forces, the Gleeson commission, military service allowance, MSA, was made pensionable in the case of personnel retiring on or after 1 August 1990. This approach was fully consistent with settled public service pensions policy which provides that the benefit of an allowance being made pensionable for serving personnel does not extend to existing pensioners.

More recently, the Commission on Public Service Pensions specifically addressed the issue of the pensionability of allowances, including MSA, and the consequences for public service pensioners generally in its final report, which was published in January 2001. However, having considered the arguments advanced by the groups affected, together with longstanding public service pensions policy in that context and the substantial cost implications involved, the commission did not recommend any increase for the pensioners concerned. No change in existing policy on this matter has been authorised or is contemplated.