§ Mr. BANFIELD
asked the Chancellor of the Exchequer whether having regard to the negotiations at present proceeding in respect of pensions of teachers who:retired during the period 1st September, 1931, to 30th June, 1934, he will say why it is not proposed to grant to civil servants retiring during that period terms which would place them on an equal basis in regard to the restoration of cuts in so far as they affect pensions?
§ Mr. COOPER
I cannot anticipate the outcome of the negotiations referred to, but I can see no parallel between the two eases. As regards the position of the civil servants referred to in the question, I would refer the hon. Member to my46W reply of even date to the hon. Member for London University (Sir E. Graham-Little).
§ Sir E. GRAHAM-LITTLE
asked the Chancellor of the Exchequer whether he is aware that civil servants in receipt of salaries of over £2,000;at the date of their retirement during the period 1st September, 1931, to 30th June, 1934, were awarded their pensions on their uncut salary, even though the salary at the time of retirement was subject to an economy cut; and whether he will say why it is proposed that civil servants in receipt of lower salaries shall not be given the same benefit?
§ Mr. COOPER
The answer to the first part of the question is in the affirmative. These officers, whose bonus had been withdrawn in its entirety prior to 1931, were, as were also certain other officers, in receipt of salaries without any addition of bonus based on cost of living. The cut on 1st October, 1931, was made from their salaries; it was a special and temporary economy cut, made on the understanding that it would not affect their pensions. They were accordingly pensioned upon their uncut salaries as being the salaries and emoluments of their offices within the meaning of the Superannuation Acts. The remuneration of the other civil servants referred to in the question was composed of salary or wages supplemented by bonus which was liable to vary half-yearly with the cost of living; and after retirement that portion of their pensions which was in respect of bonus was liable under the Treasury Minute of 20th March, 1922, to vary quarterly. Accordingly the pensions of those who had already retired became automatically liable to reduction, and were reduced, on 1st July, 1931, several months before the imposition of the September, 1931, arrangements; and the pensions of those who retired after that date fall to be awarded at corresponding rates. I would refer my hon. Friend to the Treasury Minute of 27th July, 1934 (a copy of which I am forwarding to him) on the steps proposed to be taken for the increase of these pensions from 1st July, 1934. I can see no justification for any further measure of retrospection.