§ Mr. Churchillasked the Secretary of State for Defence if he will issue to Her Majesty's Forces a brief statement of Her Majesty's Government's latest position in regard to the gratuities of short-service officers; and if he will publish it in the Official Report.
§ Dr. Gilbert, pursuant to his reply [Official Report, 25th March 1977; Vol. 928, c. 697], gave the following information:
The main points of the detailed guidance now issued to all units are as follows:
Officers on "Type B" Aircrew Commissions—There is no change in the entitlement of officers whose optional eight or 12-year breakpoints occur before 6th April 1978. Officers whose breakpoints at eight or 12 years occur on or after 6th April 1978 will remain full members of the Armed Forces Pension Scheme. If they choose to leave the Service at these breakpoints, they will be entitled to either: (a) a preserved pension and preserved tax-free terminal grant payable at age 60 based on all their reckonable service from age 21. In addition those officers who have completed at least nine years' reckonable service will also qualify for an immediate tax-free resettlement grant—currently £1,697—or, 212W (b)a preserved pension and preserved tax-free terminal grant payable at age 60, based on service from 6th April 1978 only, plus the immediate eight or 12-year tax-free gratuity, at present £4,155 and £5,000 respectively.
In recognition of the additional benefit of a preserved pension these gratuities will not exceed whatever rate is current before April 1978 and there will be no entitlement to a resettlement grant.
Officers on Short-Service (Non-Pensionable) Commissions.—Immediate tax-free gratuities will continue to be paid to officers on short-service commissions, who will remain outside the Armed Forces Pension Scheme and from 6th April 1978 be members of the State earnings-related scheme. The Armed Forces Pay Review Body is to be asked to cover these gratuities in its report due on 1st April 1978. Officers in post before 1st April 1978 will receive, as a minimum, the rates current at that date, regardless of the date of completion and length of their commissions.