§ General Sir IVOR PHILIPPSasked the Secretary to the Treasury why certain 716W Royal Engineer pensioners of the K Company, Royal Engineers, who now hold established positions in the Post Office, had their pensions (which were awarded to them for twenty-one years' service in the Army) greatly reduced up to 1911, and why one-third of their military pensions is still being deducted; whether other Army pensioners employed in the Post Office have any deductions made from their military pensions; and whether, in view of the fact that no reasons have hitherto been given why the Holt Committee's recommendation should not be adopted, the Treasury will now state their objections to the introduction of the necessary legislation to deal with the whole question?
§ Mr. BALDWINArmy pensioners in the Post Office are not, as a rule, liable to deductions. In the cases referred to, however, the pensioners's starting pay in the Post Office is higher than it would otherwise have been by reason of the skill which he has acquired by service in the Royal Engineers; and it was felt to be unreasonable that he should receive both this augmented pay and the pension based on that service. Assuming that a deduction is to be made, it is to the man's advantage that it should be made from his military pension rather than from his civil pay, as under the latter alternative his emoluments reckoning for civil pension would be reduced. In 1914 it was decided that the proportion of one-third might be taken as representing roughly the average amount of Army service taken into account in fixing Post Office pay; and this arrangement was antedated to 1st January, 1911. With reference to the third part of the question, as has been previously explained, service in K Company was military service and the men of the company were in receipt of military pay and allowances. The Treasury do not consider that the men concerned have any equitable claim to reckon this service for civil pension, and they are not prepared to propose legislation for the purpose of modifying in their favour the provisions of the existing law. It would be difficult to confine such legislation to the particular cases now in question, and the Government see strong objection in principle to the reckoning of military service for civil pension, which would confer on the ex-soldier who enters the Civil Service a benefit not enjoyed by those who enter private employment.