Lord Chelwoodasked Her Majesty's Government:
Approximately how many widows are still on the one-third rate of pension, what would be the annual cost of up-rating them all to one-half their late husband's retired pay if those who retired before 31st March 1973 "bought in" their service, and whether they will now take action to remove this inequity.
§ Lord TrefgarneIt is a basic principle of superannuation arrangements that changes in rules are not applied retrospectively. Improvements therefore have effect only for those who are serving members of a scheme on or after the operative date of revised rules, and within the terms of those rules. This principle was applied in all public service pension schemes when measures were introduced to increase the proportion of a member's pension which could be received by his eligible widow from one-third to one-half of his own entitlement, and was effective both for purposes of counting future service and for granting the opportunity to "buy back" previous service.
In the case of the Armed Forces Pension Scheme the operative date for the change was 31st March 1973. Members of the scheme who retired prior to that date have no entitlement to the improved provisions. No valid estimate can be given to the additional costs which would arise were the principle of non-retrospection to be set aside so as to create a "buy-back" facility in relation to those who retired before 31st March 1973. The total number of current and prospective widows involved is not readily determinable, and significant actuarial problems would also arise in calculation of appropriate and equitable contribution rates.
There are, however, no plans to create new entitlements of this kind.
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