Willie Penrose (Longford-Westmeath, Labour)
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Question 188: To ask the Minister for Defence the position regarding the military service allowance for members of the Permanent Defence Force who retired prior to August 1990; if his Department has done a costing in respect of the numbers who have been deprived of this allowance; if, in this context and due to the reducing numbers involved, he will take steps to have same granted to these personnel; and if he will make a statement on the matter. [37723/08]

Willie O'Dea (Limerick East, 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 Final Report of the Commission on Public Service Pensions, which was published in November 2000, 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 occupational 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.

At present, there are approximately 10,000 persons in receipt of military occupational pensions under the Defence Forces Pensions Schemes (including some 1,600 spouses and children of deceased personnel). About 3,330 of these are pre-August 1990 pensioners who do not qualify for the MSA in their pension. The direct cost to my Department of extending the benefit of MSA to them is currently estimated at almost €7.0 million a year. While the number of pensioners affected is slowly falling each year — the corresponding figure this time last year was about 3,500 — the cost involved remains significant.

The Deputy will appreciate that the position of these Defence Forces pensioners cannot be looked at in isolation and thus the cost implications for the wider public service must be considered. Any departure from established pensions policy for one group would give rise to significant cost repercussions in other areas of the public service. Accordingly, there is no scope for departing from settled public service pensions policy in the case of MSA.