§ Mr. McNamaraasked the Secretary of State for Defence what effect the proposed changes in the state earnings-related pension scheme would have on the armed forces pension scheme; by how much, and what percentage, pensions for ranks, below lance corporal, corporal, sergeant, staff sergeant, warrant officer, captain, major, lieutenant-colonel, colonel and brigadier would be changed under these proposals; and what are the current rates of pension per annum, lump sums payable to widows on death, family pensions and war pensions for the above ranks.
§ Mr. StanleyThe Government are still considering the response to their social security Green Paper proposals including those on pensions.
The rate of pension varies according to the length of reckonable service given. The current minimum and maximum rates per annum for the ranks quoted are:
Minimum Maximum Below Lance corporal 2,399 3,656 Corporal 3,044 4,638 Sergeant 3,357 5,114 Staff sergeant 3,811 5,806 Warrant officer II 3,918 6,005 Warrant officer I 4,299 6,630 Captain 4,044 7,408 Major 4,838 8,977 Lieutenant-colonel 6,160 11,291 Colonel 7,805 13,093 Brigadier 10,339 14,259 The level of benefits paid to widows depends on their husband's rank, length of service, date of retirement and whether or not the death is attributable to service. The current rates of benefit where death is attributable to service are:
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Lump Sums Payable to Widow on Death Forces Family Pension‡ DHSS War Pension†‡ Husbands Rank Death Grant† Additional attributable gratuity† Widow Children (per child—max of 4) Widow under 40 and with no Children Widow over 40 or with children Children (per child—no max) Lt Col 22,582 33,873 5,646 9,601 2,258 560 2,427 576 Col 26,186 39,279 6,547 11,223 2,619 560 2,427 576 Brig 28,518 42,777 7,130 12,273 2,852 560 2,427 576 * The grant rises above the minimum when the length of service exceeds 18 years, and increases according to length of service thereafter. † Tax free. ‡ Index linked.
§ Mr. McNamaraasked the Secretary of State for Defence what was the total cost of pensions to his Department in the financial years 1978–79 to 1985–86; and what is the projected cost in 1985–86 to 1987–88, 1988–89 to 1990–91, 1991–92, 1992–93 and 2000–2001.
§ Mr. StanleyThe total cost of pensions to the Ministry of Defence in the financial years 1978–79 to 1985–86 was as follows:
Year £ million 1978–79 432 1979–80 459 1980–81 503 1981–82 624 1982–83 680 1983–84 777 1984–85 828 * 1985–86 906 * Estimated. The cost cannot reliably be calculated for later years.
§ Mr. McNamaraasked the Secretary of State for Defence what percentage of the total defence budget was taken by pension payments in 1978–79 and 1984–85; and what percentage is planned to be taken in 1985–86, 1986–87, 1987–88, 1988–89 and each year until 2000–2001.
§ Mr. StanleyPension payments took up 5.8 per cent. of the defence budget in 1978–79 and 4.8 per cent. in 1984–85. The estimated figure for 1985–86 is 5.0 per cent. The percentage cannot be reliably calculated for later years.
§ Mr. McNamaraasked the Secretary of State for Defence what plans he has to change the present system of service pensions.
§ Mr. StanleyThere are no plans at present for significant change to the present system. Minor adjustments of detail are of course made from time to time in order to adapt to changing circumstances.