§ Sir J. D. REESasked the Under-Secretary of State for India upon what data the contribution of 4 per cent. towards the Indian Civil Service Pension of £1,000 a year was fixed, and what is the present state of the annuity fund?
§ Mr. H. BAKERThe contribution of 4 per cent. on salaries was agreed to in 1824 by the Court of Directors in acceding to a memorial of the Bengal Civil Service, praying the company to establish a system of annuities for retired Civil servants. It was calculated that a contribution at this rate would, if interest at the rate of 6 per cent. was allowed by the Court on the subscribers' payments, cover the cost of about one-half of the proposed annuity of £1,000, the other half being borne by the company. The East India Annuity Funds Act, 1874 (37 and 38 Vict., c. 12) transferred the assets of the Annuity Funds of the three presidencies to the Secretary of State for India in Council, and provided that the annuities of Indian Civil servants, hitherto charged to those funds, should henceforth be payable from Indian revenues. The Act gave effect to an 1547W arrangement which had been previously agreed to as the result of negotiations between the subscribers to the funds and the Indian Government. From that time the Annuity Funds ceased to exist, and no separate account of the 4 per cent. contributions was maintained. For further information on the subject, the hon. Member is referred to Appendix No. 29 to the Report from the Select Committee on East India Finance, H.C. 327, 23rd July, 1872.