§ 53. Sir G. Jeffreys
asked the Chancellor of the Exchequer the nature of any reductions made since 1919 in the pensions of retired civil servants?
§ Sir K. Wood
As the answer is rather long, I will, with my hon. and gallant Friend's permission, circulate it in the OFFICIAL REPORT.
§ Sir G. Jeffreys
Is it a fact that pensions of retired civil servants have not been in any way subjected to percentage deductions or stabilisation since 1919?
§ Sir K. Wood
I would prefer that my hon. and gallant Friend should examine the answer which I have given and then if necessary put down a further Question.
§ Following is the answer:
§ The only reductions in the pensions of retired civil servants since 1919 have been those resulting from the operation of a cost-of-living formula.
§ Between 1919 and 21st February, 1922, a proportion (reaching eventually 75 per cent.) of Civil Service bonus was reckoned for pension, but when the pension was once granted, no reduction was made. From 1922 to 1934 the whole of the bonus was reckoned for pension, but that part of the pension which was in respect of bonus was subject to variation quarterly by reference to the cost-of-living index figure, which fell during this period from 105 to. 50.
§ In 1934, following the consolidation of Civil Service bonus with salary at a rate appropriate to a cost-of-living figure of 55, existing pensions were dealt with on the same basis. That part of pension which was in respect of bonus was stabilised in relation to a cost-of-living figure of 55 and consolidated with the rest of the pension. There has been no reduction since that date.
§ The above information relates to persons drawing Civil Service cost-of-living bonus. The arrangements affecting persons drawing industrial (e.g., engineering, etc.) bonus were roughly similar.