HC Deb 01 November 1957 vol 575 cc123-4W
Mr. Iremonger

asked the Chancellor of the Exchequer what considerations of principle govern the differentiation in his Department's policy between the extension retrospectively to 1919 of the reckoning of unestablished service in the Civil Service as to half, which was made by the Superannuation Act, 1946, on the one hand, and the extension retrospectively to 1919 of the reckoning as to the whole, which later extension was not made by the Act of 1949, on the other.

Mr. Powell

The main consideration is that the community as a whole should not be asked, in the economic circumstances which now exist and may for some time continue, to finance additional expenditure of this kind.

Mr. Iremonger

asked the Chancellor of the Exchequer what the annual cost would have been in 1949 and would be today and in five, 10,15 and 25 years' time or extending retrospectively the pre-1949 service of unestablished civil servants which is reckonable in full for pension; whether the majority of superannuated civil servants affected have served in lower or higher grades; and whether, in view of the opinion expressed by his predecessor in the report stage of the 1949 Superannuation Bill that the only reason for failing to make this extension was the cost, he is now prepared to introduce legislation.

Mr. Powell

(1) If the law had been changed in 1949 so as to allow service before that year to reckon in full for pension, the first-year cost would have been about £3½ million. If the change were made now, the cost would be as follows:

1958–59 £5¼ million
1962–63 £6¾ million
1967–68 £8¼ million
1972–73 £9¾ million
1982–83 £11 million

(2) The majority of superannuated civil servants affected have served in lower grades.

(3) No.

Mr. Iremonger

asked the Chancellor of the Exchequer in what circumstances he would be prepared to introduce legislation to extend retrospectively to 1919 the pre-1949 service of unestablished civil servants which is reckonable in full for pension; and what parts of the recommendations of the Priestley Commission remain unimplemented today.

Mr. Powell

(1) In no circumstances that I can foresee.

(2) The recommendations of the Priestley Commission which have not been fully put into effect are those that relate to Departmental entertainment funds (paragraph 374 of the Report), use of official cars (paragraph 375) and the granting of "added years" for superannuation purposes (paragraphs 716–7).