§ Mr. Beithasked the Secretary of State for Defence why his Department's civilian employees who leave the Department with less than five years' service receive gratuity payments on leaving, whereas those who leave after longer than five years have such payments frozen until they reach retiring age.
§ Mr. ChannonI have been asked to reply.
Civilian employees of the Ministry of Defence are superannuable under the principal Civil Service pension scheme. In conformity with the preservation of benefits requirements of the Social Security Act 1973, this scheme provides for the preservation of accrued pensions and lump sums for all who leave the Civil Service after five years' qualifying service. For those who leave after two but with less than five years' service, the scheme provides for immediate payment of a lump sum benefit. This is broadly equivalent to the refund of employee's contributions that is normally payable by pension schemes in such circumstances.