Enda Kenny (Mayo, Fine Gael)
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Question 376: To ask the Minister for Defence the reason a person in receipt of a Defence Forces pension loses the additional increment authorised under paragraph 9 of the Defence Forces (Pensions) (Amendment) (No. 3) Scheme 1978 when they reach the qualifying age for an old age pension; and if he will make a statement on the matter. [16016/05]

Enda Kenny (Mayo, Fine Gael)
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Question 377: To ask the Minister for Defence the reason a person (details supplied) will lose the additional increment authorised under paragraph 9 of the Defence Forces (Pensions) (Amendment) (No. 3) Scheme 1978 due to the fact that he has reached the qualifying age for an old age pension; and if he will make a statement on the matter. [16017/05]

Willie O'Dea (Limerick East, Fianna Fail)
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I propose to take Questions Nos. 376 and 377 together.

Under the Defence Forces pension schemes, the minimum service required for an immediate pension in the case of NCOs and privates is 21 years. The pension for 21 years service consists of the following elements: (a) a basic flat rate pension which varies according to rank; (b) an addition in respect of military service allowance, MSA, in the case of qualified personnel discharged since August 1990; and (c) an addition in respect of technician pay and certain other additional payments that were held during service. All these elements of pension are payable for the lifetime of the pensioner.

Where service exceeds 21 years, the Defence Forces pension is increased by an additional increment for each such year of service up to a maximum of 31 years. This additional increment is payable at a flat rate for each year of service with a small increase if the individual qualifies for the addition at (c) above. A top-up of the MSA addition is also payable in the case of personnel with 31 or more years service. These extra payments cease to be payable when the pensioner reaches the qualifying age of 66 for an old age contributory pension or becomes entitled at an earlier age to a social welfare retirement pension.

These arrangements are in accordance with the principle of integration of occupational pensions with social insurance benefits in the case of employees such as NCOs and privates, who are fully insured under the Social Welfare Acts. This principle applies across the public service and, indeed, in many areas of the private sector. However, the method of applying the integration principle in the case of retired NCOs and privates is less severe than that applying in other areas of the public service.

The person referred to will reach 66 years of age on 17 November 2005 and the arrangements mentioned will apply to his Defence Forces pension from that date. The general issue of integration of occupational pensions in the public service was examined by the Commission on Public Service Pensions in its final report, published in January 2001. The commission accepted that integration is a fundamental component in the public service pensions framework and was strongly of the view that it should be continued. It did not make recommendations that would affect the current integration arrangements applicable to retired NCOs and privates.