§ Mr. Parkinsonasked the Minister of State for Defence how similar provisions to those in the Pensions (Increase) Bill will apply to the Armed Forces.
§ Lord BalnielComparable provision will be made by Order in Council for the Royal Navy, Royal Warrant for the Army and Queen's Order for the Royal Air Force.
There are certain differences arising from the special characteristics of Service pensions which are broadly as follows.
41WSince Armed Forces pensions are based on fixed codes rather than by reference to current salaries, the cost of living increase for the once for all adjustment of pensions in payment on 31st March, 1969, will be calculated from the first year of the code in which the Service man retired and not from the date of his retirement. For example, the 1946 cost of living will be used to calculate any adjustments which need to be made for all retirements and discharges between 19th December, 1945, and 31st August, 1950.
Where pensions were commuted before 1st April, 1969, the deduction in this respect from the recalculated original pension will be the original sum that was commuted increased by the percentage difference in the cost of living only since the year in which the commutation took place.
Sums commuted on or after 1st April, 1969, will not attract any increases subsequent to that date.
Provisions similar to that in the Bill will, of course, also be made for entitled widows and dependants of former members of the Armed Forces.
The minimum age for increases of Service pensions to be applicable will be reduced to 55 at the same time as the power in the Bill is used to reduce the age for public servants generally.