§ Mr. RedmondTo ask the Secretary of State for Defence what was the total cost of redundancy of senior service officers; and if he will make a full statement on the details of the redundancy terms over the last five years. [16612]
§ Mr. SoamesThe total cost of redundancy compensation paid to two-star officers and above since the start of the armed forces redundancy programme resulting from "Options for Change" is £606,125.
The terms of the armed forces redundancy scheme have been in place since 1975 and remain largely unchanged. These terms provide for the payment of lump sum compensation, known as the special capital payment, in 752W all cases. The amount of special capital payment is calculated by reference either to each year or part year of the uncompleted portion of career to normal retirement age, or by reference to the number of years paid service given from age 18. In addition to the benefits normally available through the armed forces pension scheme, redundant personnel may qualify for early payment of pension and terminal grant provided they have completed 12 years full-paid service.