§ LORD TREFGARNE
asked the Majesty's Government:
- (i) whether the Review on Armed Forces pay is responsible for making recommendations in respect of pensions and terminal grants to retiring Service personnel;
- (ii) if not, who does;
- (iii) what is the initial pension and terminal grant of the following categories upon retirement from the Royal Air Force:
A flight lieutenant after 20 years commissioned service;
A squadron leader after 10 years in the rank;
A wing commander after 23 years commissioned service;
A group captain after 6 years in the rank.
§ THE PARLIAMENTARY UNDERSECRETARY FOR DEFENCE FOR THE ARMY (LORD BRAYLEY)
The Armed Forces Pay Review Body was appointed to advise the Prime Minister on Service pay and allowances; it does not make recommendations in respect of pensions and terminal grants. Pension rates are however related to pay rates and are automatically revised after each pay review, affective from the same date. Changes to the basis on which Service pensions are calculated are recommended from time to time by the Secretary of State for Defence after consultation with other interested Government Departments.
The amount of pension payable on normal retirement depends on rank on retirement (a minimum of two years is normally required) and length of reckon-able service. Length of commissioned service or periods of service in a rank beyond the minimum do not effect the award. Assuming that a flight lieutenant had 20 years' reckonable service, his annual retirement pension under the 1974 code will be £1,260 and the terminal grant will be £3,780, three times the annual rates of pension.
A squadron leader with 20 years' reckonable service will receive an annual 1293WA pension of £1,476 and a terminal grant of £4,428.
A wing commander with 23 years' reckonable service will receive an annual pension of £2,053 and a terminal grant of £6,159.
A group captain with 23 years' reckonable service will receive an annual pension of £2,429 and a terminal grant of £7,287.