Robert Troy (Longford-Westmeath, Fianna Fail)
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701. To ask the Taoiseach and Minister for Defence the reason a person's Defence Forces pension entitlement changes when the recipient turns 66 years of age. [24520/17]

Paul Kehoe (Wexford, Fine Gael)
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Under the pre-April 2004 Defence Forces Pension Schemes, in the case of Non-Commissioned Officers (NCOs) and Privates, 21 years is the minimum service required for an immediate pension and gratuity, regardless of age. Maximum retirement benefits accrue after 31 years. The 21-year pension, which varies according to retiring rank and other factors, is payable for the person’s lifetime. Where qualifying service is more than 21 years, an ‘additional increment’ is payable at a flat rate for each year of service in excess of 21 years up to a maximum of 31 years. However, under the pension scheme rules, this ceases to be payable when the pensioner reaches the qualifying age for the social welfare State Pension Contributory, that is, at age 66 to 68 depending on when the insured person was born.

I am advised that these arrangements are in accordance with the long established principle of integrating occupational pensions with Social Insurance benefits of employees who are in full PRSI class. This includes NCOs and Privates, who are fully insured for the range of social insurance benefits under the Social Welfare Acts such as the State Pension.

Integration means that a person’s entitlement to social insurance benefits is taken into account when calculating the rate of occupational pension payable. The State Pension etc. is regarded as part of the overall pension package payable to the individual. The integration principle applies right across the public service and, indeed, in many areas of the private sector as well as in other countries.

I am also advised that the method of integration for these military pensioners is more favourable than in other areas of the public service. The maximum personal rate of the State Pension is considerably greater than any reduction that could arise under the pre-April 2004 Defence Forces pension arrangements by virtue of the loss of the additional increment on qualification for the State Pension.

The general issue of integration of occupational pensions in the public service was examined by the Commission on Public Service Pensions. Its Final Report, published in November 2000, was considered and broadly accepted by Government. The Commission accepted that integration is a fundamental component in the public service pension 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 covered by the pre-April 2004 Defence Forces pensions schemes.