§ 26. Mr. GLEDHILLasked the Parliamentary Secretary to the Board of Education if the cut in teachers' salaries imposed under the Economy Act, 1931, will affect their rate of pension upon retirement within the next few years?
§ 27. Mr. GRAHAM WHITEasked the Parliamentary Secretary to the Board of Education to what extent teachers who reach the retiring age during the operation of the emergency salary reductions imposed in 1931 will be prejudiced in regard to their pension rights?
§ Mr. RAMSBOTHAMGenerally speaking, pensions of teachers are calculated on the average salary received during the last five years of service, and reductions of salary during that period will, therefore, affect the amount of pension payable according to the extent to which the reduction in salary falls within those years.
§ Mr. GLEDHILLIn view of the fact that these cuts were not made by arrangement with the Burnham Committee, will the right hon. Gentleman give special consideration to this point so as not to penalise the teachers who retire during the next few years?
§ Mr. WHITEWill not the hon. Gentleman ask his right hon. Friend to reconsider the matter so that these people shall not be permanently prejudiced?
§ Mr. ANNESLEY SOMERVILLEIn view of the fact that the cuts in salary are admittedly temporary, is it fair to make the cut in pension permanent for those who have retired recently? Would it not be better to exempt the pension?
§ Mr. RAMSBOTHAMThere is no question of their being penalised, because the Act in question never guaranteed any particular pension to any particular grade of teacher. As regards the position of the teachers generally, though there may be cases of individual hardship, it should be borne in mind that a teacher retiring this year after 40 years' service has contributed only for 12 years to the pension and the State has made the remaining 28 contributions. In fact, the Emmott Committee estimated that the value of the State contribution to the teaching profession as a whole is the equivalent of a free gift of an annuity of £4,500,000 spread over 40 years.
§ Sir HERBERT SAMUELIs it not the case that the pensions of the police were not allowed to be affected by the temporary cuts? Ought that not to be the rule in this case?
§ Mr. RAMSBOTHAMThe position of the police is somewhat different. They are pensioned on their salary for the last year of their service only.
§ Mr. MACQUISTENIs it not the case that the teachers got their pay raised in 1919?