§ Rear-Admiral Morgan-Gilesasked the Secretary of State for Defence what is the percentage increase in salary of a colonel between 1st April 1975 and 31st March 1978; what is the percentage increase in terminal grant and retired pay of a colonel on retirement with 34 years qualifying service, between 1st April 1975 and 31st March 1978; and what is the percentage reduction in value, in real terms, of these benefits over the period.
§ Dr. GilbertThe salary of a colonel with four years in the rank increased by 2.4 per cent. as a result of the 1st April 1976 and 1st April 1977 Service pay awards. The basic retired pay and terminal grant of a colonel with 34 years reckonable service increased by a similar percentage, but, as Service pensions are index-linked, the value of the retired pay, in real terms, would depend on the date of retirement, as the following examples demonstrate:
Date of retirement Cumulative percentage increase in retired pay since date of retirement 31st March 1976 62.2 31st March 1977 28.9 31st March 1978 12.3 Over the period April 1975 to March 1978 there was a 33.7 per cent. reduction in the purchasing power of the pound.