§
[No. 63]
After Clause 43, insert the following new clause:
§ Provision for early retirement in lieu of compensation for loss of office
§ ".—(1) In order to facilitate the early retirement of certain persons who might otherwise suffer, in consequence of this Act, loss of employment or loss or diminution of emoluments, any person who—
- (a) is in any such employment as may be prescribed for the purposes of this subsection; and
- (b) attains or has attained the age of fifty on or before a prescribed date; and
- (c) fulfils such other conditions as may be prescribed;
§ (2) Where any person has made an election under the preceding subsection, then, unless within a prescribed period notice of objection to the election is given to him by a prescribed person, this section shall apply to him on his retirement within a prescribed period and before attaining the normal retiring age and compensation on his retirement shall not be payable to or in respect of him in pursuance of section 24 of the Superannuation Act 1972 (which among other things relates to compensation for loss of office).
§ (3) Subject to the following subsection, the Secretary of State shall by regulations provide for the payment by him to or in respect of a person to whom this section applies of benefits corresponding, as near as may be, to those which would have been paid to or in respect of that person under the relevant superannuation scheme if—
- (a) at the date of his retirement he had attained the normal retiring age; and
- (b) the actual period of his reckonable service were increased by such period as may be prescribed, not exceeding the period beginning on the date of his retirement and ending on the date on which he would attain the normal retiring age.
§ (4)Regulations in pursuance of the preceding subsection shall be so framed as to secure that the sums which would otherwise be payable under the regulations in accordance with that subsection to or in respect of any person are reduced to take account of any benefits payable to or in respect of him under the relevant superannuation scheme.
§ (5) Any sums payable under regulations made in pursuance of subsection (3) of this section shall be treated for the purposes of section 73 of the Finance Act 1972 (under which compensation for loss of office or employment is chargeable to tax as a payment made on retirement or removal from office or employment) in like manner as compensation paid in pursuance of the said section 24.
1782
§
(6) In this section—
normal retiring age" means—
reckonable service", in relation to any person, means service in respect of which benefits are payable under the relevant superannuation scheme; and
relevant superannuation scheme", in relation to any person, means the instrument which is applicable in the case of his employment and which makes provision with respect to the pensions, allowances or gratuities which, subject to the fulfilment of certain requirements and conditions, are to be, or may be, paid to or in respect of persons in that employment.".
§ LORD ABERDAREMy Lords, I beg to move that this House doth agree with the Commons in their Amendment No. 63. This Amendment enables certain senior officers who are aged 50 or over to opt for premature retirement as an alternative to becoming employed with a new authority or receiving compensation for loss of employment. The intention is that officers of prescribed senior grades who are employed by existing National Health Service authorities, or are engaged in local authority functions that will be transferred to the Secretary of State under the Bill, will be permitted to retire on advantageous terms on or before March 31, 1974, unless their employing authorities object.
§ Moved, That this House doth agree with the Commons in the said Amendment.—(Lord Aberdare.)
§ LORD GARNSWORTHYMy Lords, I should like to extend a welcome to this Amendment and to say that it is quite clear that the noble Lord, Lord Aberdare, has listened very patiently and in an understanding way to many of the points that we tried to put from this side of the House in regard to treatment of staff. It is not only that he listened with patience and understanding, but he has shown that quite clearly he has influence with his chief and with his Department and we very much appreciate the goods that he has brought home, of which this is an example.
§ LORD ABERDAREMy Lords, I am very much obliged to the noble Lord. To be praised for doing something for the staff of the service is indeed high praise, for which one is very grateful.
§ BARONESS WHITEMy Lords, will the noble Lord be good enough to say whether, if someone takes advantage of these provisions, he is able to be employed elsewhere in the public service without forfeiting these advantages, or not? I ask this because there are many very valuable public servants involved in the reorganisation of local government, and one does not blame any of them for taking advantage of the rather profitable proposals; but it would be rather sad if under this provision we also lost people in the public service because they could not take advantage of these terms if they took other appointments in the public service.
§ LORD ABERDAREMy Lords, I think probably the noble Baroness is right. If they have opted for premature retirement they will be expected to retire and not to be available for employment in the public service.
§ BARONESS WHITEMy Lords, the noble Lord will appreciate of course that they can take commercial or private jobs without let or hindrance. Here indeed is the disadvantage of giving these very advantageous terms for premature retirement.
§ LORD ABERDAREMy Lords, I am grateful to the noble Baroness for raising that point and I will write to her on it.
§ On Question, Motion agreed to.