§ Colonel YATEasked whether it is still permissible for a Government pensioner to commute, for a lump sum of money down, the whole of the pension awarded to him; how much has thus been paid away, since the passing of the Act in 1871, in respect of pensions wholly commuted; and what profit or loss has accrued to the Exchequer on the rest of the transactions, namely, the pensions only partially commuted, bearing in mind that the five per cent, rate of interest charged to the commuter is higher than the rate at which Government can borrow the money?
§ Mr. HOBHOUSEPermission to commute the whole of the pension is now limited to civil servants who retire on account of the abolition or reorganisation of their offices, and to Naval and Military officers in receipt of pensions for wounds. The total amount paid for pensions wholly commuted since the passing of the Act of 1871 up to 31st December, 1910, is £4,496,256. It is not possible to state definitely the amount of profit which has accrued to the Exchequer in respect of pensions partially commuted, but from a partial investigation it is estimated that a balance in favour of the Exchequer of about £200,000 would result from the partial commutations.