§ Mr. Austin-WalkerTo ask the Secretary of State for Defence if he will make a statement about the redundancy terms offered to civilian employees of the Ministry of Defence and contracted employees made redundant as a result of reductions in defence expenditure or relocation and rationalisation.
§ Mr. AitkenCivil servants' redundancy payments are made under the terms of the principal civil service pension scheme and the benefits are based on reckonable service and pensionable pay. Generally, those aged 50 or over receive an immediate payment of their superannuation lump sum and an annual compensation payment, in lieu of and equal to their pension, and calculated using enhanced reckonable service. They also receive a compensation lump sum of up to six months' pensionable pay. Those under 50 have their pension benefits preserved to the minimum retirement age and receive an immediate compensation payment of up to three years' pensionable pay. A commercially run redundancy counselling and outplacement service has been set up to help civil servants who have been made redundant identify new opportunities.
My noble Friend the Parliamentary Under-Secretary of State will write to the hon. Member about the redundancy terms offered to contracted employees.