§ Mr. Bruce-Gardyneasked the Minister for the Civil Service what is his latest estimate of the annual cost to public funds of tax-free retirement payments to civil servants.
§ Mr. ChannonRetiring civil servants have since 1935 received a lump sum payment equal to three times their annual pension The cost of these payments, which are no greater in value than the lump sum retirement benefits offered in most good occupational pension schemes, is estimated to be £131.3 million in the current financial year. Such benefits are tax free, in common with all similar benefits payable under schemes approved for tax purposes by the Inland Revenue.