Bernard Allen (Cork North Central, Fine Gael)
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Question 421: To ask the Minister for Defence if he will amend Article 38 of the Pension Scheme 1937 whereby if a member of the Army is granted a service pension and is in receipt of a disablement pension under the Army Pensions Act 1980 an abatement of the combined value of the pensions should be carried out; his views on whether it is correct and just that a former member of the Defence Forces who was judged to qualify for a disability pension in view of their service then has their pension reduced because of the award of the disability pension; and if he will review the Act with a view to eliminating this injustice. [28593/07]

Willie O'Dea (Limerick East, Fianna Fail)
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Where a person in receipt of a service pension under the Defence Forces Pensions Schemes is granted a disability pension under the Army Pensions Acts, the Schemes provide that the service pension must be reduced (or abated) — usually by an amount equal to one-half of the disability pension. The reduction is applied to the service pension and not to the disability pension, which is paid in full. There is an advantage to the pensioner in this arrangement because disability pensions are exempt from income tax whereas service pensions are liable to tax. The provisions outlined are of long-standing and the objective is to limit the total amount payable by way of pension. The principle involved is not unique to the Defence Forces and is applied generally in the public service.