HC Deb 24 January 2002 vol 378 cc993-4W
Mr. Swayne

To ask the Secretary of State for Defence what consideration the Armed Forces Pension Scheme review has given to using additional voluntary contributions as a means of making specialist pay pensionable; and if he will make a statement. [29237]

Mr. Ingram

The Ministry of Defence plans to introduce a facility to enable all serving personnel to make additional voluntary contributions (AVCs) through deductions from pay, to enable them to "top up" their pension benefits where they have scope to do so under Inland Revenue rules. This would also be available for those on specialist pay. As we made clear in our consultation document on the current review of the Armed Forces Pension Scheme, published in March of last year, we are also considering the option that MOD, as employer, might fund part of the costs of AVCs in respect of specialist pay. The decision will depend on whether or not this is judged to be a reasonable and cost-effective way of improving recruitment and retention. A decision on the review is expected later this year.

Mr. Swayne

To ask the Secretary of State for Defence what plans he has for an education campaign to enable armed forces personnel to make informed judgments on the Armed Forces Pension Review Body's conclusions. [29495]

Mr. Ingram

The Ministry of Defence is in the process of developing a multi-media communications package which we plan will comprise booklets, letters, factsheets, internet material, personal forecasts, presentations and roadshows designed to enable all serving military personnel to make a timely and informed judgment about the relative merits of the current Armed Forces Pension Scheme and the anticipated new scheme.

Mr. Swayne

To ask the Secretary of State for Defence what assessment the Armed Forces Pension Review Body has made of proposals to uplift for inflation the best of the three final years of a serviceman or woman's service when determining pensionable pay; and if he will make a statement. [29496]

Mr. Ingram

In the Ministry of Defence's consultation document on the Armed Forces Pension Scheme (AFPS) Review, the MOD indicated the intention to move to a final salary scheme and the possibility of basing the pension on the best year's salary in the three years before retirement. In response to views expressed during the consultation, we are currently considering whether we might introduce a mechanism to provide an uplift for inflation under the new AFPS.