Michael Noonan (Limerick East, Fine Gael)
Link to this: Individually | In context

Question 418: To ask the Minister for Defence if his attention has been drawn to the recommendations of the Gleeson Commission on Remuneration and Conditions of Service in the Defence Forces 1990, that the military service allowance should be made fully reckonable for superannuation purposes for all military pensioners; if he will implement this recommendation; and if he will make a statement on the matter. [39302/06]

Willie O'Dea (Limerick East, Fianna Fail)
Link to this: Individually | In context

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. As I have previously indicated to the House, 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 Final Report of the Commission on Public Service Pensions, which was published in January 2001, was considered and broadly accepted by Government. In that Report, the Commission specifically addressed the issue of the pensionability of allowances (including the MSA) and the consequences for public service pensioners generally. However, having considered the arguments advanced by the groups affected, together with long-standing public service pensions policy in that context and the substantial cost implications involved, the Commission did not recommend any increase for the pensioners concerned.

Aside from pre-August 1990 Defence Forces pensioners, the other groups affected include certain retired members of An Garda Síochána and the Prison Service and retired teachers. In the context of the Government's subsequent consideration of the Commission's Report, no change in existing policy on this matter has been authorised or is contemplated. Accordingly, there is no scope for departing from settled public service pensions policy in the case of MSA.

Michael Noonan (Limerick East, Fine Gael)
Link to this: Individually | In context

Question 419: To ask the Minister for Defence if he will allow retired members of the Defence Forces in receipt of a service pension, but who are not members of the spouses and children's pension scheme, to join the scheme, at an appropriate contribution rate; and if he will make a statement on the matter. [39303/06]

Willie O'Dea (Limerick East, Fianna Fail)
Link to this: Individually | In context

The contributory pension schemes for the widow(er)s and children of deceased military personnel are essentially the same as those applying elsewhere in the public service. Benefits under the schemes are additional to Widow(er)'s Contributory Pension under the Social Welfare Acts for which Defence Forces' personnel are insured by virtue of their PRSI contributions.

Provision for the payment of pensions by this Department to the widows and children of deceased NCOs and Privates was first made in 1978 when a contributory pension scheme for those dependants was introduced. Membership of the scheme was compulsory in the case of personnel enlisting on or after 1 February 1978. Personnel serving at the time were included as members of the scheme unless they made a positive option in writing not to become members.

In 1985, a second opportunity to make provision for their dependants was granted when all NCOs and Privates — as well as pensioners and the representatives of deceased soldiers — who had opted out of the scheme in 1978 were invited to reconsider their decision and to join a revised scheme. Unfortunately, not all availed of this option.

At this stage, all NCOs and Privates who were serving when the original scheme was introduced in 1978 have had two opportunities to join the scheme. The question of again re-opening membership options in respect of the spouses' and children's pension scheme has been considered on a number of occasions over the years but I regret to say that it has not been found possible to make any concession.

More recently, the Final Report of the Commission of Public Service Pensions, which was published in January 2001, was considered and broadly accepted by Government. In its Report, the Commission recommended against a general re-opening of spouses' and children's scheme membership options across the public service because of the major additional costs involved and concerns for the integrity and financing of the schemes.

Michael Noonan (Limerick East, Fine Gael)
Link to this: Individually | In context

Question 420: To ask the Minister for Defence if he will amend the superannuation scheme for military personnel in order that the additional increment paid to pensioners for each year of service in excess of 21 years service is applicable to those who avail of the social welfare retirement pension in their 65th year; and if he will make a statement on the matter. [39304/06]

Willie O'Dea (Limerick East, Fianna Fail)
Link to this: Individually | In context

Under the existing Defence Forces Pensions 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 is a flat rate amount which varies according to rank and which, together with the addition for military service allowance, currently ranges from €248.35 a week in the case of a Private to €370.30 a week in the case of a Sergeant Major. This pension is payable for the lifetime of the pensioner.

Where service exceeds 21 years, the pension is increased by an additional flat rate amount — known as an additional increment and currently €8.10 a week — for each such year of service up to a maximum of 31 years. This additional increment continues to be payable until 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, at which stage the payment ceases. The maximum personal rate of either Social Welfare pension is currently €193.30 a week (if aged under 80) and is considerably greater than the maximum additional increment of €81.00 a week (after 31 years' service when maximum pension is payable).

These arrangements are in accordance with the principle of integrating 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 right across the public service and, indeed, in many areas of the private sector. I should say, however, that 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 general issue of integration of occupational pensions in the public service was examined by the Commission on Public Service Pensions whose Final Report, published in January 2001, has been considered and broadly accepted by Government. 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 any recommendations that would affect the current integration arrangements applicable to retired NCOs and Privates.