§ 2. Mr. Scott-Hopkinsasked the Civil Lord of the Admiralty what are the criteria on which decisions are taken regarding commutation of the pensions of naval personnel.
§ Mr. C. Ian Orr-EwingCommutation of service pensions, which of course are not contributory, is allowed if the pensioner is in good health and if it appears to be to his permanent advantage. Every application is most carefully considered.
§ Mr. Scott-HopkinsCan my hon. Friend tell me how he knows that it is to his advantage and the criteria by which he judges whether this is an advantage or not?
§ Mr. Orr-EwingWe are very happy to provide commutation facilities when it is a sound project, for example, when it is for house purchase or investment in a business. If it is for speculative purposes or current living costs, we do not normally give permission.
§ Mr. Scott-HopkinsDoes my hon. Friend mean to say that a civil servant in Whitehall can be the judge of whether it is speculative or not, or sound or unsound? That is surely not the correct way of going about it?
§ Mr. Orr-EwingThis is a very longstanding arrangement, and the Army Pensions Office does this on behalf of all three Services and investigates the matter most carefully. We must remember that we are paying out public funds far in advance of when they are really due when we allow this operation to take place.