§ Mr. Spellerasked the Prime Minister (1) how much money was saved from the total estimated cost of armed forces pensions during the 1985–86 financial year as a result of the Government's decision to stage top salary pay awards for senior officers of the armed forces during that year; and if she will base their pensions on the salaries actually in payment;
(2) how much money was saved from the total estimated cost of armed forces pensions during the 1984–85 financial year as a result of the Government's decision to stage pay awards to members of the armed forces during that year; and if she will base their pensions on the salaries actually in payment;
(3) if she will list the total cost of armed forces pensions in the financial years 1984–85 and 1985–86; and what is the estimated total cost for the current year;
(4) how much money will be saved in the total cost of armed forces pensions during the current financial year as a result of the Government's decision to delay the effective date of the 1986 pay awards to members of the armed forces from 1 April to 1 July; and if he will base their pensions on the salaries actually in payment.
§ The Prime MinisterThe information requested is as follows:
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£ million. 1984–85 1985–86 1986–87
£ million. Estimated total savings each year arising from the decision to base pensions on staged pay awards (Note 1) 4.545 0.195 3.433 Total Cost of Pension benefits 818.143 892.262 *972.0 * Estimate. Note 1 that is difference in cost between pensions based on staged pay awards and the full awards recommended by the review bodies had these been awarded from 1 April of the years in question. All new pensions beginning in the three financial years in question have been or will be based on salaries in payment at the time of retirement in accordance with the principles set out in my written answer to the hon. Member for Chiselhurst (Mr. Sims) on 13 April 1984, at col. 383.