HC Deb 12 November 1985 vol 86 cc140-1W
Mr. McNamara

asked the Secretary of State for Defence what effect the proposed changes in the state earnings-related pension scheme would have on the armed forces pension scheme; by how much, and what percentage, pensions for ranks, below lance corporal, corporal, sergeant, staff sergeant, warrant officer, captain, major, lieutenant-colonel, colonel and brigadier would be changed under these proposals; and what are the current rates of pension per annum, lump sums payable to widows on death, family pensions and war pensions for the above ranks.

Mr. Stanley

The Government are still considering the response to their social security Green Paper proposals including those on pensions.

The rate of pension varies according to the length of reckonable service given. The current minimum and maximum rates per annum for the ranks quoted are:

Minimum Maximum
Below Lance corporal 2,399 3,656
Corporal 3,044 4,638
Sergeant 3,357 5,114
Staff sergeant 3,811 5,806
Warrant officer II 3,918 6,005
Warrant officer I 4,299 6,630
Captain 4,044 7,408
Major 4,838 8,977
Lieutenant-colonel 6,160 11,291
Colonel 7,805 13,093
Brigadier 10,339 14,259

The level of benefits paid to widows depends on their husband's rank, length of service, date of retirement and whether or not the death is attributable to service. The current rates of benefit where death is attributable to service are:

Lump Sums Payable to Widow on Death Forces Family Pension‡ DHSS War Pension†‡
Husbands Rank Death Grant† Additional attributable gratuity† Widow Children (per child—max of 4) Widow under 40 and with no Children Widow over 40 or with children Children (per child—no max)
Lt Col 22,582 33,873 5,646 9,601 2,258 560 2,427 576
Col 26,186 39,279 6,547 11,223 2,619 560 2,427 576
Brig 28,518 42,777 7,130 12,273 2,852 560 2,427 576
* The grant rises above the minimum when the length of service exceeds 18 years, and increases according to length of service thereafter.
† Tax free.
‡ Index linked.

Mr. McNamara

asked the Secretary of State for Defence what was the total cost of pensions to his Department in the financial years 1978–79 to 1985–86; and what is the projected cost in 1985–86 to 1987–88, 1988–89 to 1990–91, 1991–92, 1992–93 and 2000–2001.

Mr. Stanley

The total cost of pensions to the Ministry of Defence in the financial years 1978–79 to 1985–86 was as follows:

Year £ million
1978–79 432
1979–80 459
1980–81 503
1981–82 624
1982–83 680
1983–84 777
1984–85 828
* 1985–86 906
* Estimated.

The cost cannot reliably be calculated for later years.

Mr. McNamara

asked the Secretary of State for Defence what percentage of the total defence budget was taken by pension payments in 1978–79 and 1984–85; and what percentage is planned to be taken in 1985–86, 1986–87, 1987–88, 1988–89 and each year until 2000–2001.

Mr. Stanley

Pension payments took up 5.8 per cent. of the defence budget in 1978–79 and 4.8 per cent. in 1984–85. The estimated figure for 1985–86 is 5.0 per cent. The percentage cannot be reliably calculated for later years.

Mr. McNamara

asked the Secretary of State for Defence what plans he has to change the present system of service pensions.

Mr. Stanley

There are no plans at present for significant change to the present system. Minor adjustments of detail are of course made from time to time in order to adapt to changing circumstances.