HC Deb 30 July 1913 vol 56 cc538-9W
Mr. GINNELL

asked the Secretary to the Treasury the amount of profit made by the Treasury in each of the last twenty years, and for the whole of that period, by charging persons of all ranks in the Civil Service on commuting their pensions 5 per cent. on money which the Treasury obtains at 3½ per cent.; what becomes of this profit; and where it is accounted for?

Mr. MASTERMAN:

The profit or loss which has accrued to the Exchequer from the commutation of pensions cannot be stated owing to the fact that it is not possible to trace the duration of life of those persons who have commuted the whole of their pensions. Upon the commutation of a pension an annuity is placed instead thereof upon the Vote concerned of an amount sufficient to repay to the National Debt Commissioners at the expiration of ten years the sum advanced by them to the pensioner, together with interest at 3½ per cent. per annum, in accordance with the provisions of Section 8 of the Pensions Commutation Act, 1871.