152 Deputy Jack Wall asked the Minister for Defence the reason for the reduction in the pension entitlements of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [13650/08]

The person concerned retired on grounds of ill-health from his position as a civilian employee with the Defence Forces in April 1986. He was awarded a gratuity amounting to £4,709.33 and an annual pension amounting to £508.61 on retirement, under the terms of the non-contributory pension scheme for non-established State employees. The person in question received on his retirement all of his entitlements under that pension scheme. Over the years, the rate of occupational pension paid to the person concerned has been increased in line with pay awards, both general and special, for serving employees.

Under the terms of the non-contributory pension scheme for non-established State employees, the rate of occupational pension paid to a retired civilian employee must be re-calculated at age 65 years to take account of any increases in the level of social welfare benefits due at that stage so that there is no net financial gain from the two sources of income. As a result of the increase in the rate of social welfare benefits due to the person concerned from his 65th birthday, the rate of occupational pension paid to the person in question was reduced when he attained the age of 65 years in June 1997.